ECONOMYNEXT - People`s Merchant Finance (PMF) said it had sold a 108-perch property to its parent firm, Sri Lanka’s state-owned People's Bank, for just over a billion rupees that would help settle debt and which may increase profitability.
A stock exchange filing said the related party transaction was done on normal commercial terms after two valuations including one by the government valuer.
The 108.4 perch property is located at No. 21 Nawam Mawatha, Colombo 2, part of the capital’s business district.
The funds will also be used to strengthen People's Merchant Finance’s core capital in order to meet minimum capital requirements set for finance companies.
“The excess money may be used for future expansion of PMF,” the statement said. “It may increase the net interest income and profitability of PMF accordingly.”
A stock exchange filing said the related party transaction was done on normal commercial terms after two valuations including one by the government valuer.
The 108.4 perch property is located at No. 21 Nawam Mawatha, Colombo 2, part of the capital’s business district.
The funds will also be used to strengthen People's Merchant Finance’s core capital in order to meet minimum capital requirements set for finance companies.
“The excess money may be used for future expansion of PMF,” the statement said. “It may increase the net interest income and profitability of PMF accordingly.”
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