MBSL awaits regulator nod for cash infusion to insurance subsidiary

Monday, 5 November 2018 00:00 - - {{hitsCtrl.values.hits}}

Merchant Bank of Sri Lanka and Finance PLC (MBSL) is awaiting the approval from the insurance regulator to complete the Rs. 500 million capital infusion to its subsidiary.

MBSL said its shareholders and those of MBSL Insurance Ltd. have approved the resolution to invest Rs. 500 million in MBSL Insurance to meet the balance regulatory capital requirement, thereby restoring the licence of the subsidiary.

MBSL also said it is currently in the process of facilitating a capital infusion of Rs. 700 million to the insurance subsidiary from a strategic investor.

As at 31 December 2017, MBSL had made an impairment provision of 95.5% of the investment in the insurance subsidiary.

This disclosure was further to the filing made to the CSE by MBSL on 1 October.

MBSL continues to be on the CSE's Watch List since 17 July 2018.