Licences of two finance institutes cancelled in 2018

Colombo (News1st): The Central Bank of Sri Lanka (CBSL) says it is engaged in continuous regulatory supervisions of licensed finance companies through off-site and on-site supervision. Quoting Central Bank data the Sunday Times reported that licenses of two finance companies were cancelled by the Central Bank this year. According to the paper, the two companies 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 license cancelled in July this year. More than 7,000 people had deposited about Rs 6.1 billion in the two finance companies, whose licenses were 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. The paper added that the depositors may be able to recover part of their remaining deposits in the process of liquidation of such a compact.