CBSL cancels Co-operative Leasing registration over compliance failures

Monday, 15 June 2026 05:25 - - {{hitsCtrl.values.hits}}

The Central Bank of Sri Lanka (CBSL) yesterday said it has cancelled the registration of Co-operative Leasing Company Ltd. (CLCL) as a Registered Finance Leasing Establishment under the Finance Leasing Act, citing repeated regulatory breaches and failure to comply with the non-bank financial institution (NBFI) sector consolidation framework.

CBSL said CLCL had acted in contravention of directions issued by the Director of the Department of Supervision of Non-Bank Financial Institutions (DSNBFI), including repeated non-compliance with the Finance Leasing (Reporting Requirements) Direction No. 2 of 2010.

The regulator also said the company had failed to meet requirements stipulated under the CBSL’s Masterplan for Consolidation of Non-Bank Financial Institutions despite being granted several extensions to achieve compliance.

According to the CBSL, CLCL had made no satisfactory progress in adhering to the consolidation roadmap and, in particular, had failed to develop a viable plan to ensure the sustainability of its business operations.

As a result, the Certificate of Registration issued to CLCL under the Finance Leasing Act No. 56 of 2000 has been cancelled with effect from 10 June 2026 in terms of Section 9(1)(f) of the Act.

The CBSL informed the public that following the cancellation, CLCL no longer has the authority to undertake any new finance leasing business.

However, the company may continue to deal with finance leasing contracts entered into before the cancellation took effect.

The move marks the latest regulatory action by the CBSL as it continues efforts to strengthen governance, reporting standards and long-term sustainability within the non-bank financial sector through the implementation of its consolidation framework.