Financial Times

Finance companies unlikely to be affected


The 32 finance companies registered by the Central Bank are unlikely to be affected by the crisis at the Golden Key company which is not a finance company, said Chairman of the Finance Houses Association of Sri Lanka Shirley Perera.

But he said repercussions will be felt in finance companies in the Ceylinco Group. He said the meeting between Ceylinco Group Chairman Lalith Kotalawela and Golden Key customers on Tuesday may have restored some investor confidence but that remains yet to be seen.

He also said other finance companies may actually benefit if Golden Key depositors get their money back and decide to invest in other finance companies. He added that during the holiday season, people also tend to withdraw more money for spending.

At the most recent meeting of finance companies in November, it was agreed to stay away from high risk lending and other measures in case a crisis were to hit. Mr. Perera said the next scheduled meeting for finance company heads and the CB, who meet regularly, is scheduled for January 9. However, he said they might have to meet before this for discussions pertaining to Golden Key and the impact it may have on other companies. (NG)

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