Commercial Bank to liquidate its Italian Exchange House

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Commercial Bank of Ceylon PLC has decided to liquidate its fully-owned subsidiary called Commex Sri Lanka S.R.L, a Sri Lankan Exchange House offering money transfer facilities in Italy, the Bank said yesterday.

A spokesperson of the Bank said that this decision was taken due to the difficulty in sending foreign currency to meet the statutory capital requirements of the relevant Italian subsidiary based on the existing exchange regulations in Sri Lanka.

In this regard, the Bank has issued an announcement to the Colombo Stock Exchange as follows:

“At a meeting of the Board held on July 29, 2022, the Board of Directors of Commercial Bank of Ceylon PLC was informed by the Chairman of ‘Commex Sri Lanka S.R.L.’, a wholly owned subsidiary of the Company, located in Italy, that further to the consideration of the operations of the overseas subsidiaries of the Company post the economic impact of Covid-19, steps have been taken to voluntarily liquidate ‘Commex Sri Lanka S.R.L’.”

Commex Sri Lanka S.R.L. of Via Giacomo Leopardi, Rome, incorporated and registered in Italy under the supervision of the Bank of Italy in year 2016 received the necessary regulatory approvals from both countries to engage in fund transfers on its own from a market that generates an estimated about Rs 3 billion in remittances to Sri Lanka per month.

The Commercial Bank is the first Sri Lankan Bank to open a company in Italy for money transfer operations in late 2016.

Italy is one of the biggest markets for Sri Lankan migrants with an estimated 150,000 Sri Lankans living and working there.

In the future, the Bank intends to provide its services through other money exchange institutions in Italy.

By Ishara Gamage