This could increase the investment ceiling of the PABC to US$ 100 million, 'Sri Lanka Mirror' learns.

PABC chief Nimal Fernando has gone overseas to make the plan a success, reports add.

Union Bank of Switzerland (UBS), which was once the second largest bank in Switzerland, merged with Swiss Bank Corporation in 1998, to become UBS to form what was then the largest bank in Europe and the second largest bank in the World.

However,the continued deterioration in PABC's capitalisation amid aggressive loan growth, has deemed necessary to either find a capital investor or merge PABC with another bank.

The main shareholder of the PABC is businessman Dhammika Perera.