US $ 100mn capital infusion to ETI Finance gets CB nod

ETI Finance Limi ted , a registered finance company with the Central Bank, is to receive foreign equity investment to the tune of US $ 100 million, Swarnamahal Financial Services PLC said in a filing to the Colombo Stock Exchange. ETI Finance as the parent company of Swarnamahal Finance holds 90 percent of the latter’s shares. The filing said Central Bank approval had been granted for the equity injection.

Central Bank of Sri Lanka has approved the proposal to inject US$ 100 million to ETI Finance Limited as a share capital,” the filing said. The capital injection is mandated to be completed by February 28, 2016. Media reports said the funds were coming from Australia. Steep decline in gold prices and mismanagement had resulted in an erosion of assets at ETI Finance.