Sri Lanka’s The Finance trading suspended over accounting issues

ECONOMYNEXT – Sri Lanka’s The Finance Company Plc, a troubled non-bank lender which was slapped with a cease-and-desist order by the regulator last week, said it planned to resolve accounting problems highlighted by auditors by March 2019.

The Finance Company has made losses and is facing a 17 billion-rupee gap in the balance sheet.

Last week, the Central Bank ordered it not to take any new deposits or give loans.

Existing depositors will be paid interest at Treasury bill rates.

The firm said in a stock exchange filing that the Securities and Exchange Commission (SEC) had informed it on February 01 that it could not honour the firm’s request in November for an extra nine months to resolve accounting issues highlighted by auditors.

Trading in The Finance shares had been suspended on February 17.

(Colombo/Feb21/2019-SB)