Sri Lanka’s ETI Finance, Swarnamahal under central bank management

ECONOMYNEXT – Sri Lanka’s central bank said it will appoint new management to manage ETI Finance Ltd and Swarnamahal Financial Services, restrict withdrawals and ensure interest payment on deposits to protect depositors’ interests and the financial system.

The regulatory action was effective immediately but temporary and taken in view of the weak financial performances of the ETI Finance Ltd. (ETIF) and Swarnamahal Financial Services, a statement said.

The central bank said it is appointing a panel to manage the affairs of both companies and will restrict the withdrawal of maturing deposits and renew such deposits for a period of six months.

It will also ensure payment of interest due for deposits as per agreed terms and conditions.

“In the meantime, the companies can finalize the negotiations with the prospective investors and the Central Bank will facilitate suitable investors as per the applicable laws and regulations,” the statement said.

“The depositors of the above two companies are further informed that the Central Bank is taking further measures and closely monitoring the operations of the companies to protect the rights of the depositors and therefore, the depositors are kindly requested to cooperate with the Central Bank in its effort to ensure the stability of the ETIF and SFSP.”
(COLOMBO, January 02, 2018)

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