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Licences of two finance companies cancelled; 7,000 people had deposited Rs. 6.1 billion
View(s):More than 7,000 people had deposited about Rs 6.1 billion in the two finance companies, whose licences were cancelled by the Central Bank this year.
The two are the Central Investments and Finance PLC (CIFL) which had its license cancelled in March this year and the Standard Credit Finance Limited (TSCFL) which had its licence cancelled in July this year.
In response to a Right to Information (RTI) application, the CBSL said there were 43 licensed finance companies operating in the country as at July 31, 2018 and in the past ten years, the licences of only two companies had been cancelled.
The CBSL said the Sri Lankan Deposit Insurance and Liquidity Support Scheme (SLDILSS) would take necessary action to pay compensation to the insured depositors up to a maximum of Rs. 600,000 for a depositor as per the regulations of the scheme. Depositors may be able to recover part of their remaining deposits in the process of liquidation of such a compact, the CBSL said.
It also said it was engaged in continuous regulatory supervisions through off-site and on-site supervision of the licensed finance companies.