Sri Lanka to pay compensation to Standard Credit Finance depositors

ECONOMYNEXT –Sri Lanka’s banking regulator said it would pay compensation to depositors of Standard Credit Finance Limited, a failed finance company, and asked depositors to be ready to make claims when an announcement is made.

The Central Bank said in a statement depositors of Standard Credit and Finance Ltd. should submit duly completed claim forms along with required documentation to its Resolution and Enforcement Department.

An announcement would be made in the press and social media “in due course”, it said.

Standard Credit Finance Limited had been facing a liquidity crisis since 2008 with depositors unable to withdraw their money over the last ten years.

All efforts made to revive the company through different strategies had failed.

The Central Bank said it cancelled the licence issued to the firm from 25th July 2018, banning it from doing finance business.

The Central Bank will pay compensation under the Sri Lanka Deposit Insurance and Liquidity Support Scheme to the depositors of Standard Credit and Finance Ltd. up to a maximum of 600,000 rupees per depositor.

It had earlier said depositors may be able to recover part of their remaining deposits in the process of liquidation subject to the priority of claims.
(COLOMBO, 05 December 2018)

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