ICRA Lanka Withdraws Rating of Sri Lanka Savings Bank

InstrumentCurrent Rated Amount (LKR Mn) Rating Action
Issuer rating         N/A [SL] BBB- (Stable); Withdrawn

Rating action

ICRA Lanka Limited (“ICRA Lanka”) has withdrawn the Issuer rating of [SL] BBB- (pronounced SL Triple B minus) with Stable outlook assigned to Sri Lanka Savings Bank (“SLSB”/ “the Bank”). The withdrawal is as a result of termination of rating agreement(s) entered into by SLSB with ICRA Lanka, pursuant to the decision by ICRA Lanka to cease its business operations in Sri Lanka.

The termination of the rating agreement(s) is as per Rule 88(b) of the Credit Rating Agency Rules promulgated under the Securities and Exchange Commission of Sri Lanka Act No. 19 of 2021 (the “SEC Act”).

About the Bank:

The Sri Lanka Savings Bank was established in July 2006 as a state owned licensed specialized bank, with the primary objective of acting as the administrative trustee of the assets and liabilities of Pramuka Savings and Development Bank (PSDB) which was failed due to mismanagement. In 2010, with state intervention, National Development Trust Fund (NDTF) was merged with SLSB to meet the capital deficiency of the Bank. Until 2011, SLSB was only authorised to recover the PSDB portfolio and pay-off the withdrawals of its deposit holders. Subsequently, in 2011, the articles of the Bank were amended to enable SLSB to commence its own lending operations. Following a government budget proposal in 2016, SLSB was acquired by NSB in October 2019. Currently, SLSB is in the process of merging with its parent NSB as proposed by the regulator (CBSL).

Rating history for last three years:


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