The Central Bank of Sri Lanka (CBSL) has imposed freezing orders on six companies and their directors under Section 44 of the Finance Business Act, No. 42 of 2011, restricting them from disposing of, transferring or otherwise dealing with their properties and other assets.
The orders were issued by the Director of the Department of Supervision of Non-Bank Financial Institutions (DSNBFI) of the CBSL. The High Court of Colombo subsequently confirmed and extended the freezing orders against the companies concerned, according to a statement issued by the Central Bank.
The CBSL has urged the public to place their money only with institutions legally authorized to accept deposits, warning that deposits made with unauthorized entities could be at risk.
According to the Central Bank, only institutions licensed under the Banking Act, No. 30 of 1988, or the Finance Business Act, No. 42 of 2011, as well as institutions specifically exempted under the relevant laws, are permitted to accept deposits from the public.
The CBSL said it is also investigating several institutions and individuals following complaints to determine whether they have been conducting finance business or accepting public deposits in violation of the Finance Business Act.
The Central Bank has called on members of the public to report any institutions or individuals suspected of accepting deposits without the required legal authorization.