CBSL Freezes Assets of Six Companies Over Deposit Concerns

COLOMBO (News 1st); The Central Bank of Sri Lanka (CBSL) has announced that freezing orders remain in effect against six companies and their directors under the provisions of the Finance Business Act No. 42 of 2011, as authorities continue investigations into alleged unauthorized finance business activities.

According to the CBSL, the Director of the Department of Supervision of Non-Bank Financial Institutions issued orders preventing the disposal, transfer, or any other dealings involving the properties and assets held by the affected companies and their directors. These freezing orders were subsequently confirmed and extended by the High Court of Colombo.

The companies currently subject to freezing orders are Kasagala Green Plantation (Private) Limited, Ceylon Green Life Plantation (Private) Limited, Singhe Capital Investment Limited, Pro Shop Advertising Holdings (Private) Limited, Athens International Education Centre (Private) Limited, and Eyon Lanka Investment & Film Production International Company (Private) Limited.

The CBSL stated that investigations are currently being conducted under Section 42 of the Finance Business Act with regard to Kasagala Green Plantation (Private) Limited and Ceylon Green Life Plantation (Private) Limited.

In the case of Singhe Capital Investment Limited, Pro Shop Advertising Holdings (Private) Limited, Athens International Education Centre (Private) Limited, and Eyon Lanka Investment & Film Production International Company (Private) Limited, the CBSL has already determined that they had engaged in finance business and/or accepted deposits in contravention of Section 2 of the Finance Business Act.

The Central Bank strongly advised the public to deposit money only with legally authorized institutions, warning that investing in unauthorized entities could result in the loss of hard-earned savings.

The CBSL also emphasized that only institutions licensed under the Banking Act No. 30 of 1988 or the Finance Business Act, or those specifically exempted from the provisions of those laws, are permitted to accept deposits from the public. The regulator noted that investigations are currently underway into several institutions and individuals based on complaints received regarding possible violations of the Finance Business Act.

The Central Bank further encouraged members of the public to report any institution or individual suspected of accepting deposits illegally, as authorities continue efforts to safeguard depositors and maintain the integrity of Sri Lanka’s financial system.