Ceylinco Finance appoints chairman

The board of the Ceylinco Finance Plc has appointed prominent banker N.B.S.D. Balalle as the non executive and independent Chairman of the company.

The company has faced a turbulent time due to the impacts of the global financial crisis and some issues in the Ceylinco group.

There are problems in the company but they are systemic impacts of the external factors. There is no governance issues in the Ceylinco Finance Plc, there is a good board of directors, ample asset base to support the liabilities of the company, Balalle told the Sunday Observer.

Ceylinco Finance is separate group of companies listed in the Colombo stock Exchange and registered in the Central Bank as a special licensed leasing company in Sri Lanka. We have over 12,000 shareholders and 12 subsidiary companies. The Ceylinco Finance Plc is a separate company from the Ceylinco Consolidated, he said.

Balalle said that the new position is challenging. The external impacts, especially issues in the Ceylinco Group have affected the confidence of the public on this company. However, before accepting this position I inquired about the true position of the company and I understood that this is a well managed company and there is no grave crisis.

The challenge is rebuilding the confidence of the public and we have a strategic plan and have taken various initiatives. Another two executive directors will be appointed. The company will be consolidated in financial service business and all non core businesses, subsidiaries and assets will be sold off to improve the liquidity position of the company. This will increase the liquidity of the company by over Rs.1 billion. We are also planning on getting a lot of credit lines from the financial sector to improve our liquidity, Balalle said.

We get the support of the Central Bank and other financial companies to rebuild the confidence and improve business activities. Our asset position is strong to build the confidence in the financial sector to attract credit, he said.

Balalle a Hon.fellow of the Institute of Bankers Sri Lanka is a former Assistant General manager of the Bank of Ceylon, Sampath Bank and Commercial Bank. He was also the CEO of the Union Bank and the Chairman of the National Savings Bank.

(GW)