The Monetary Board of the Central Bank of Sri Lanka (CBSL) has decided to cancel the Finance Business Licence issued to Swarnamahal Financial Services PLC (SFSP), effective from yesterday (28 Dec.)
Accordingly, as per Section 37(3) of the Finance Business Act, No. 42 of 2011 (FBA), SFSP will no longer be permitted to engage in Finance Business under the FBA with effect from yesterday(28 Dec).
The Certificate of Registration of SFSP as a Registered Finance Leasing Establishment was also cancelled under the provisions of the Finance Leasing Act, No. 56 of 2000, on the instructions of the Director of CBSL’s Department of Supervision of Non- Bank Financial Institutions.
In view of the contribution made by SMB Finance PLC (SMBF) (then SMB Leasing PLC) to repay the remaining deposits of SFSP, as per the directions of the “Masterplan for Consolidation of Non-Bank Financial Institutions Sector”, unclaimed deposit liability of SFSP will be transferred to SMBF along with the corresponding assets value and relevant depositor information.
Further, Sri Lanka Deposit Insurance and Liquidity Support Scheme (SLDILSS) will take necessary actions to pay compensation to the outstanding insured depositors of SFSP up to a maximum of Rs. 1,100,000/- per depositor as per the regulations of the SLDILSS in due course.
Upon the transfer of unclaimed deposit to SMBF and payment of compensation through SLDILSS, the entirety of the deposit liability of SFSP will be settled.