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Sat09222018

Last updateThu, 13 Sep 2018 10am

Business News

The Monetary Board of the Central Bank of Sri Lanka decides to take regulatory actions in view of the weak financial performances of ETI Finance and Swarnamahal Financial Services

The Monetary Board of the Central Bank of Sri Lanka, having considered the weak financial performances of ETI Finance and Swarnamahal Financial Services, decided to take regulatory actions, as a temporary measure, under the provisions of the Finance Business Act No. 42 of 2011, with immediate effect.
This is in a bid to safeguard the interests of the depositors and other creditors of the two companies and to ensure safety and soundness of the financial system
The measures taken are;
1. The appointing of a panel to manage the affairs of both companies.
2. Restricting the withdrawal of maturing deposits and renewing such deposits for a period of six months.
and
3. The Payment of interest due for deposits, as per agreed terms and conditions.
In the meantime, the companies can finalize their negotiations with prospective investors. The Central Bank will facilitate suitable investors as per the applicable laws and regulations. The depositors of the above two companies are further informed that the Central Bank is taking further measures and is closely monitoring the operations of the companies to protect the rights of the depositors. Therefore, the depositors are kindly requested to co-operate with the Central Bank in its effort to ensure the stability of the two companies.

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