Seylan Bank
Encyclopedia
Seylan Bank PLC is a privately owned Commercial Bank in Sri Lanka
, which was owned by the Ceylinco Consolidated
. It has branches both in urban as well as rural areas of Sri Lanka. Seylan bank had 114 banking centres island wide with 3900 staff members in 2007.
Seylan Bank was incorporated in 28 August 1987 as a Public Limited Liability Company. It was established its first subsidiary, Seylan Merchant Bank Limited, in 1992. A second subsidiary, Ceylinco Seylan Developments Limited was also established in 1992, primarily for the purpose of constructing the Bank's head office building, Ceylinco Seylan Towers.
and the mismanagement of funds by the Former Chairman in 2008, resulted in a liquidity crisis
in the last weeks of 2008. This prompted the monetary board of the Central Bank of Sri Lanka
to bring Seylan Bank under the control of state owned Bank of Ceylon
(BOC) on the 28 December 2008. This took place under Section 30(1) of the Monetary Law Act No.58 of 1949.
Seylan Bank's troubles started when the Golden Key Credit Card Company, an unregulated firm of the Ceylinco group was unable to repay its customers due to financial instability.
Sri Lanka
Sri Lanka, officially the Democratic Socialist Republic of Sri Lanka is a country off the southern coast of the Indian subcontinent. Known until 1972 as Ceylon , Sri Lanka is an island surrounded by the Indian Ocean, the Gulf of Mannar and the Palk Strait, and lies in the vicinity of India and the...
, which was owned by the Ceylinco Consolidated
Ceylinco Consolidated
Ceylinco Consolidated is one of Sri Lanka's oldest and largest business conglomerates.The original company was founded by Mr. Hugh Weerasekere and Cyril E. S. Perera QC named "Ceylon Insurance Co." listed late 1938-39....
. It has branches both in urban as well as rural areas of Sri Lanka. Seylan bank had 114 banking centres island wide with 3900 staff members in 2007.
Seylan Bank was incorporated in 28 August 1987 as a Public Limited Liability Company. It was established its first subsidiary, Seylan Merchant Bank Limited, in 1992. A second subsidiary, Ceylinco Seylan Developments Limited was also established in 1992, primarily for the purpose of constructing the Bank's head office building, Ceylinco Seylan Towers.
Crisis
The collapse of the Golden Key Credit Card Company which was a subsidiary of the Ceylinco ConsolidatedCeylinco Consolidated
Ceylinco Consolidated is one of Sri Lanka's oldest and largest business conglomerates.The original company was founded by Mr. Hugh Weerasekere and Cyril E. S. Perera QC named "Ceylon Insurance Co." listed late 1938-39....
and the mismanagement of funds by the Former Chairman in 2008, resulted in a liquidity crisis
Liquidity crisis
In financial economics, liquidity is a catch-all term that may refer to several different yet closely related concepts. Among other things, it may refer to Asset Market liquidity In financial economics, liquidity is a catch-all term that may refer to several different yet closely related...
in the last weeks of 2008. This prompted the monetary board of the Central Bank of Sri Lanka
Central Bank of Sri Lanka
The Central Bank of Sri Lanka is the monetary authority of Sri Lanka. It was established in 1950, two years after independence. The founder governor of the Central Bank of Sri Lanka was John Exter, while the minister of finance at the time was J.R...
to bring Seylan Bank under the control of state owned Bank of Ceylon
Bank of Ceylon
Bank of Ceylon is a government-owned, major commercial bank in Sri Lanka. Its head office is located in iconic cylindrical building in the capital Colombo, the political and commercial capital of the islandThe bank has a network of 308 branches and 200+ extension centers covering all parts of the...
(BOC) on the 28 December 2008. This took place under Section 30(1) of the Monetary Law Act No.58 of 1949.
Seylan Bank's troubles started when the Golden Key Credit Card Company, an unregulated firm of the Ceylinco group was unable to repay its customers due to financial instability.