The Finance Houses Association (FHA) has launched a Code of Ethics for registered finance companies for the benefit of all stakeholders of the industry.
FHA said the new Code of Ethics would be a guideline for business operations of member finance companies in terms of customer services, confidentiality of information, legal obligations, employee recruitment, competitive initiatives and projecting the finance industry image.
The first copy of ‘The Code of Ethics’ was presented to the Central Bank Governor Ajith Nivard Cabraal.
FHA said two years ago Sri Lanka experienced a calamity of finance company failures, causing much damage to the level of public trust and confidence placed on finance companies as a whole.
“This can be attributed to the lapses and failures in governance, lack of transparency and unsustainable financial exposure in finance companies. The Central Bank of Sri Lanka is making a renewed effort to enhance the quality of governance, equity and transparency of business operations of finance companies by implementing a deposit insurance scheme and introducing regulatory frameworks with new rules and guidelines,” FHA said.
“Still the occasional emergence of financial crisis both locally and globally, leaves much room for anxiety and doubt regarding the adequacy of regulatory frameworks established by the Central Bank, particularly in relation to the financial security of the depositor and the general public at large. The scope of finance operations too has grown much more complex than what it was a few years ago,” FHA said.
It said the new code was launched as part of an attempt to address these concerns and to support the Central Bank’s effort to ensure the growth of the sector.
Apart from Governor Cabral, others associated at the presentation were J.P. Mampitiya – Assistant Governor, CBSL; H.M. Ekanayaka – Director – Non-Bank Supervision, CBSL; S.S. Wimalasena – former Senior Assistant Director, Regional Development Department, CBSL, along with K.J. Yatawara – Chairman of The Finance Houses Association (Director/CEO, The Finance Co. PLC) and Council Members of FHA Sumith Adhihetty (Managing Director, LB Finance PLC), Hafeez Rajudin (Managing Director, Arpico Finance Co. PLC), and Shermal Jayasuriya (Finance Director, Mercantile Investments and Finance PLC).