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Central Bank cancels finance business licence of The Finance Company

May 22, 2020 (LBO) – Sri Lanka's Central Bank has decided to cancel the finance business licence issued to The Finance Company (TFC), in terms of the FBA with effect from today.

Accordingly, TFC is not permitted to engage in Finance Business under the Finance Business Act No.

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42 of 2011 (FBA) with effect from such date.

Further, the Central Bank has decided to cancel the Certificate of Registration of TFC as a Registered Finance Leasing Establishment under the provisions of the Finance Leasing Act No.

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56 of 2000.

The Monetary Board earlier allowed The Finance Company to identify a credible investor with valid proof funds and a viable business restructuring plan to revive the operations of the company but TFC failed to identify such investor up to date.

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The Sri Lanka Deposit Insurance and Liquidity Support Scheme of the CBSL will take necessary actions to pay compensation to the insured depositors under the applicable laws and regulations which would facilitate to settle 93% of the company’s total depositors in full (135,100 depositors out of 145,172 total depositors), while each of the remaining 7% depositors (10,072 depositors) will also receive Rs.600,000/-as a part of their deposit amount and the remaining balance may be able to recover in the process of liquidation subject to the priority of claims.

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Full statement

Press-Release-22-05-2020-English

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