Merchant Bank of Sri Lanka & Finance PLC (MBSL) received approval in principle from its board last week for the proposed sale of its entire shareholding (53.81 percent) in MBSL Insurance Company Limited (MBSLI). 
The proposed sale will be subject to obtaining the necessary regulatory approvals from the Insurance Regulatory Commission of Sri Lanka and Central Bank of Sri Lanka and compliance with procedural steps in the Shareholders Agreement between the shareholders of MBSLI.  
Fitch Ratings in February assigned MBSL a first-time National Long-Term Rating of ‘BBB+(lka)’. The Outlook is Stable.
MBSL is 84.5 percent owned by Bank of Ceylon (BOC) and other BOC group entities.