Sunday March 18, 2018

Sri Lanka's CIFL to be liquidated, compensation for depositors

Mar 05, 2018 15:57 PM GMT+0530 | 0 Comment(s)

ECONOMYNEXT – Sri Lanka’s central bank said it will cancel the licence of Central Investment and Finance (CIFL) and pay compensation to depositors who may be able to recover some of their dues when in the troubled finance company is liquidated.

“All efforts made to revive the company through different strategies have failed,” a statement said.

“The Central Bank wishes to emphasize that legal actions will be taken against the responsible parties for the mismanagement and fraudulent activities of the company.”

 The Central Bank said continuity of CIFL’s current status will be further detrimental to the interest of depositors and other stake holders of the company and the Monetary Board has decided to cancel its licence from 5 March 2018, and not permit it to engage in finance business anymore.

The Director of the Department of Supervision of Non- Bank Financial Institutions of the Central Bank of Sri Lanka has decided to cancel the registration of CIFL as a Registered Finance Leasing Establishment and not allow it to grant new finance lease facilities from 5 March 2018.

“Sri Lanka Deposit Insurance and Liquidity Support Scheme will take necessary actions to pay compensation to the insured depositors under the applicable laws and regulations,” the statement said.

“Further, depositors may be able to recover some of their dues in the process of liquidation subject to the priority of claims.”
(COLOMBO, March 05, 2018)


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