Central Bank extends the restrictions imposed on the Finance Company

Central Bank extends the restrictions imposed on the Finance Company

15 May 2019 08:45 am

Central Bank continues its regulatory measures including withdrawal restrictions for deposits and disbursement of loans and advances on the Finance Company which was on the verge of collapse due to liquidity constraints.
The Monetary Board of the CBSL has decided to extend the regulatory actions imposed two months ago for another three months period from  15th May 2019 , in order to consider the business restructuring proposal submitted by the company.
Interest due on deposits will be paid continuously.
The Monetary Board of the Central Bank of Sri Lanka (CBSL) initiated a number of regulatory actions, as temporary measures, under the provisions of Finance Business Act (FBA), on the Finance Company PLC (TFC) with effect from  15th February 2019.
   
These measures were taken with a view to safeguard the interests of the depositors and other stakeholders of the company.   
   
Regulatory measures include suspension of accepting new deposits, withdrawal of deposits and disbursement of loans and advances to facilitate the restructuring process of TFC.   
   
The Monetary Board of the CBSL has decided to extend the regulatory actions for another three months period from  15th May 2019 , in order to consider the business restructuring proposal submitted by the company.   
   
Interest due on deposits will be paid continuously. The depositors may contact the Department of Supervision on Non-Bank Financial Institutions of the Central Bank of Sri Lanka through 0112 477 573, 0112 477 229, 0112 477 504 or snbfi_query@cbsl.lk for further clarifications.