According to top officials, the Central Bank of Sri Lanka is making plans to increase the single shareholder limit of banks. This will be a part of the six month road map for macro-economic and financial system stability presented by the newly appointed Governor of the Central Bank, Ajith Nivard Cabraal.
The move comes as a sign of relief for shareholders who have been lobbying for years for the Central Bank to ‘reconsider’ its single shareholder limit restriction. According to the current rules, one party can only hold up to 10% of a bank. This stake can be extended up to 15% with special permission from the Central Bank. Shareholders are supposed to sell any excess shares if they are to acquire any.
The Central Bank plans to extend the limit by 5%. Therefore, a single party will hold a 15% stake in a bank, and the stake can be increased to 20% with special permission from the CBSL.
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