Colombo 22nd November 2007. The Merchant Bank of Sri Lanka Plc which recorded an extraordinary performance in 2006, witnessing remarkable improvement in productivity in all the functional areas with above average returns both quantitatively and qualitatively, last month clinched the 2nd place in the Medium Scale National Productivity Award in the Service Sector.

CEO of the MBSL Gamini Karunthilake said that this special recognition was not only within the Western Province but also at national level. During 2006 the MBSL achieved remarkable significant success with the highest ever profitability recorded, regaining the status of a billion revenue group, coupled with a very satisfactory improvement in asset quality. The achievement was impressive and the level of performance was duly welcomed by our stakeholders in our 25th Anniversary.

The MBSL Bank was last year awarded a rating of AA3 (Double A three) and short term rating of L1 by Lanka Rating Agency, establishing its stability as a financial institution. MBSL also opened its new branch at Anuradhapura.

The success story of the Merchant Bank of Sri Lanka Plc beings with its birth in 1980 as a Management Consultancy Division of the Bank of Ceylon. Two years later in 1982 it was incorporated as a public limited liability company.

1989 to 1992 were eventful years for MBSL as Lanka Securities (Private) Limited (LSL) was incorporated as an associate company of MBSL. It also acquired 80% of LMG Forex Limited to form M.B. Financial Services Ltd, and introduced a commercial paper for the first time in Sri Lanka. The following year MBSL obtained listing at the Colombo Stock Exchange and acquired joint ownership (with BOC) of the Colombo Credit Limited (CCL) to service the secondary financial market, catered to by finance companies.

1995 was a year that witnessed expanding the branch network. MBSL set up the first outstation branch in Galle and later established branches in Kandy and Kurunegala.

In 1998 MBSL faced a huge funds crisis due to high exposure in the stock market, downturn in the market and other economic activities. The MBSL team proved many critics wrong and pulled it out of the ravine into which it had fallen. The brave remained to complete the transformation. Finally came the recovery in small steps at first followed by full recovery. The patience and the toil were fully rewarded. MBSL continued the strategy of new business on Leasing and concentrated its efforts on recovery of debts. This resulted in the turnaround. Karunathilake added.

In 2005 the bank entered into a strategic alliances with SBI Capital Markets Limited, India pursuing its corporate strategy of forming alliances with regional giants in investment banking and added the fourth branch to its branch network at Maharagama.

The voyage has reached many destinations including victories as well as setbacks. After all, it is not just having the courage to set out on a voyage; it is the courage and determination to keep on sailing, realizing that behind every horizon there is another, and another, and another. In fact, we are fully aware that in a boundless and restless ocean of investment banking, our voyage is an endless one, Karunathilake concluded.