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Sri Lanka failed finance company depositors to Rs9.8bn extra after insurance increased

ECONOMYNEXT – Depositors of failed Sri Lanka finance companies will get 9.8 billion rupee more with the ceiling on deposits qualified for insurance being raised by half a million rupees per person, the central bank said.

Compensation from the Sri Lanka Deposit Insurance and Liquidity Support Scheme (SLDILSS), run by the Central Bank of Sri Lanka (CBSL) had been raised to 1.1 million rupees from an earlier 600,000 rupees.

“This decision has been taken to provide further relief to the depositors of financial institutions regulated by CBSL in the event of a cancellation or suspension of the licences of such institutions,” the Central Bank said.

“The Resolution and Enforcement Department of CBSL is currently taking necessary measures to commence the payment of additional compensation expeditiously.

“The payment mechanism and the date of commencement of payments under the increased compensation threshold will be notified by CBSL in due course.”

Depositors of six finance companies whose licenses had been cancelled or suspended are in line to get the higher amount.

Central Investments and Finance PLC (CIFL), The Standard Credit Finance Limited (TSCFL), TKS Finance Limited (TKSFL), The Finance Company PLC (TFC), ETI Finance Limited (ETIFL) and Swarnamahal Financial Services PLC (SFSP) are in resolution processes.

At a ceiling of 600,000 rupees 25.8 billion rupees would be paid to 254,484 depositors. Up to now 21.6 billion rupees would be paid.

Further details in this regard may be obtained from the Resolution and Enforcement Department via telephone numbers 0112477261 and 0112398788, the central bank said.

Up to 9.8 billion rupees extra would be paid to depositors at a ceiling of 1.1 million rupees. As a result 94 percent of depositors would be paid. (Colombo/Mar19/2021)

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  1. What about the rest of the failed Finance companies under the Umbrella of Lalith Kotelawala’s Ceylinco Group e.g THE FINANCE and GUARATEE Company etc., until now nothing has been done to give back the funds of the Depositors, many years have passed, Central Bank is the worse institution in Sri Lanka, they only show but does not implement, the officials are very inefficient and some of them are very corrupt, they boast of recruiting University Graduates with a First class to their management, most of them are rotten good for nothing lot.

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