CB Assistant Governor C.J.P. Siriwardana told the Business Times that strategic investors are allowed to take 100 per cent ownership of NBFIs with the consent of the CB and 10 per cent of shares in local banks with an option to go up to 15 per cent with the approval of the regulator.
He noted that the strategic investor can infuse fresh capital into any bank finance or leasing company before or after its merger with another financial entity under the consolidation process.
Several strategic investors have shown interest in infusing fresh capital to banks and NBFIs have also initiated their preliminary assessments of the respective banks and NBFIs.
The banking sector comprises 21 local banks and 12 foreign banks, whilst NBFIs include 49 finance companies and nine leasing companies.
According to the finance sector consolidation plan, 58 NBFIs will be reduced to at least 20, he said, adding that this number could increase slightly following the completion of the process.
The companies would be allowed to find a suitable entity voluntarily to merge with but if a company fails to find a partner then the CB will have to intervene in the process, he said.