CBSL permits Swarnamahal Financial Services to resume biz temporarily

• 6-month move aimed at exploring possibility of absorbing company to ‘Master Plan for Consolidation of Non-Bank Financial Institutions Sector’

The Monetary Board of the Central Bank of Sri Lanka has made an order permitting Swarnamahal Financial Services PLC (SFSP) to resume business for a limited period of six months with effect from yesterday (13).

The move, in terms of Section 31(5)(a) of the Finance Business Act, No. 42 of 2011 (FBA), is for the purpose of exploring the possibility of absorbing the company to the ‘Master Plan for Consolidation of Non-Bank Financial Institutions 

Sector’.

CBSL said the Panel of Management appointed by the Monetary Board (Panel) had been authorised to continue managing the affairs of SFSP, and to initiate and facilitate the aforesaid process, while Directors of SFSP can carry out only the functions that will be authorised by the Director, Department of Supervision of Non-Bank Financial Institutions (D/SNBFI) and/or the Panel.

CBSL, in a statement, informed the public that SFSP had not been permitted to carry on any finance business or other business whatsoever, except executing the aforementioned process. 

Therefore, the public is requested to refrain from placing deposits or engaging in any other business with SFSP in any manner, other than settlement of contractual obligations to SFSP. 

All debtors or any other parties who have payables to SFSP are advised to settle their contractual obligations to SFSP on time, only through the bank accounts under the name of Swarnamahal Financial Services PLC and maintain records as evidence for all payments, to avoid any possible litigation against them for non-repayment of dues.