Merchant Credit of Sri Lanka celebrates 25 years of Service to the Nation

Merchant Credit of Sri Lanka a registered finance company regulated by the Central Bank of Sri Lanka, celebrates 25 years of dedicated service to the nation. Founded in 1983, Merchant Credit was acquired by Bank of Ceylon and its subsidiary Merchant Bank of Sri Lanka in 1991 and commenced operations under a new management team in 1992. 89.3% of share is owned by Bank of Ceylon, 49% directly and 40.3% through its 79%-owned subsidiary Merchant Bank of Sri Lanka.
 
Merchant Credit has obtained the Fitch rating of 'BBB(lka)'. The ratings are primarily based upon the credit strength and financial flexibility which stem from its parents – the state-owned Bank of Ceylon (“BOC”), i.e. the largest commercial bank in Sri Lanka and Merchant Bank of Sri Lanka – a highly innovative company providing specialised financial services of a highly personalized nature backed by the Government of Sri Lanka.
 
Merchant Credit’s core business is the provision of vehicle finance in the form of finance leases and hire purchase (HP) which together represented 75% of its asset base at FY`07. In addition Merchant Credit also offers several products and services including Term Loans, Acceptance of Term Deposits, Import and Export Financing, Real Estate Development etc.
 
At the press conference held to celebrate the event, the Chairman of Merchant Credit of Sri Lanka Mr. Janaka Ratnayake said “it’s a memorable occasion for us in celebrate this event which signifies the stability and growth in performance of Merchant Credit.” In spite of a very difficult economic climate, the Company demonstrated solid top line revenue growth during the 10 months of operation in 2008. The income of Merchant Credit has increased by 20% over 2007. Merchant Credit fixed deposit base has grown and stands at Rs. 2.2 Billion which is a record in the company’s history. Income derived from loans and advances have also grown during the 10 months of operation increased by 81% compared to 2007. We hope to end the year on a very positive note in terms of profitability. We continue to carefully monitor our business activities to avoid undue risks in this rapidly changing environment."
 
Managing amid the challenges that face companies of every kind has become a central problem. It is a predicament that arises from the very nature of today's economy. And the solution requires retraining not of skills but of mindset and re-look at the business in a simpler form. The biggest challenge has less to do with corporate strategy or management structures than with the nature of human beings and our instinctive reactions to change.
 
Hence this year has been a year of consolidation, revisiting our business plans and laying a platform to grow. In doing so the company has identified several products and services that it will be offering in the near future. They include: saving deposits, pawning etc. Mr. Ratnayake said “They are a natural strategic expansion taking into account the nature of the business we are in”.
 
Further the company has taken steps to increase its branch network in order to reach out to its clients. The 5th branch was opened in Kiribathgoda two months ago and the next branch will be opened in Wennappuwa on Monday 01 December to commemorate the 25th anniversary. “We are also planning to open several more branches in the coming year in strategic locations. Through the branch network we are aiming to take Merchant Credit to new heights”, Mr. Ratnayake added.