Lankaputhra Development Bank’s licence cancelled following merger

The Monetary Board of the Central Bank has granted the approval to cancel the licence issued to Lankaputhra Development Bank Limited (LDBL), with effect from April 1, 2019, with the completion of the merger of LDBL with Pradeshiya Sanwardhana Bank (PSB), as proposed in the government budget 2016.

Accordingly, all assets and liabilities of LDBL were acquired and merged with PSB with effect from April 1, 2019 and all banking business carried on by LDBL shall be carried on by PSB.

“Therefore, the licence issued to Lankaputhra Development Bank Limited in terms of section 76C of the Banking Act, No. 30 of 1988 (as amended) to carry on banking business as specified in Schedule IV of the Banking Act, in the form of domestic banking business, is cancelled with effect from April 1, 2019,” a Central Bank statement said.