With the recent directions of Central Bank of Sri Lanka to increase the minimum capital requirements for licensed specialised banks SANASA Development Bank Ltd.(SDBL) has taken steps to enhance its present capital base. SDBL has issued and fully paid up capital of Rs. 300 million as at 31st January 2006. The ownership of the Bank is presently confined to SANASA movement where primary societies have invested in equity. According to the Central Bank of Sri Lanka guidelines SDBL is required to increase its present capital base up to Rs.750 million by the 28th February 2006 and up to Rs.1,500 million by the end of December 2007. This was disclosed by Mr.Nimal Mamaduwa Deputy General Manager SDBL.
 
The Bank has already negotiated with some of the potential stakeholders to invest in equity. Amongst them are Three Dutch Financial Institutions namely The Rabo Bank, Triodos Bank and FMO Netherlands and NTUC Income of Singapore, DID a Canadian Co-operative organization.
 
The Rabo Bank is a co-operative based bank in Netherlands having close links with SDBL since its inception giving technical assistance.
 
Tridos Bank is an active fund manager, both for funds, set up by Triodos Bank itself and for third parties, such as charities, donor organisations and the Government. The bank's expertise in credit appraisal and loan monitoring proved to be very useful in the area of economic activities in development cooperation, renewable energy finance and venture capital.
 
FMO Netherlands supports the private sector in developing countries and emerging markets – not unilaterally in the form of grants but as a partner on a equal footing and in a business like manner. FMO provides loans and guarantees and takes share participations in enterprises and funds the transfer of knowledge.
 
NTUC Income is a leading insurance company in Singapore established in 1970. It is the first Singapore owned Insurer rated AA by a leading rating agency. This company is Singapores only insurance co-operative and is also a leading life, general and health insurer. NTUC is today the largest general insurer dominating nearly 50% of the vehicle insurance.
 
DID is a largest Canadian cooperative organisation and the SDBL has been closely working with this organisation in the development of cooperative sector in this country through SANASA movement.
 
With these potential foreign stake holders and some of the potential local investors SDBL has organised a potential stake holder meeting in Colombo on the 6th of March 2006, Mamaduwa disclosed.
 
When making these investments the bank will strictly adhere to the present CBSL guidelines. It is the intention of SDBL to maintain its identity as a truly microfinance bank and uphold the majority stake. SDBL recorded its highest ever profit during the last year at rupees 65.9 million which is 53 % growth against that of 2004. The bank has diversified well managed credit portfolio maintaining NPL ratio at 6.1 % as at 31st December 2005, Mamaduwa concluded.
 

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