The Monetary Board of the Central Bank of Sri Lanka (CBSL) has decided to cancel the Finance Business Licence issued to Swarnamahal Financial Services PLC (SFSP), reliable from today (28 Dec.)Accordingly, as per Section 37( 3) of the Finance Business Act, No.

42 of 2011 (FBA), SFSP will no longer be allowed to participate in Finance Business under the FBA with result from today.

The Certificate of Registration of SFSP as a Registered Finance Leasing Establishment was also cancelled under the arrangements of the Finance Leasing Act, No.

56 of 2000, on the guidelines of the Director of CBSLs Department of Supervision of Non- Bank Financial Institutions.In view of the contribution made by SMB Finance PLC (SMBF) (then SMB Leasing PLC) to repay the remaining deposits of SFSP, as per the instructions of the Masterplan for Consolidation of Non-Bank Financial Institutions Sector , unclaimed deposit liability of SFSP will be transferred to SMBF along with the matching properties value and pertinent depositor information.Further, Sri Lanka Deposit Insurance and Liquidity Support Scheme (SLDILSS) will take essential actions to pay payment to the outstanding insured depositors of SFSP as much as an optimum of Rs.

1,100,000/- per depositor as per the guidelines of the SLDILSS in due course.

Upon the transfer of unclaimed deposit to SMBF and payment of compensation through SLDILSS, the entirety of the deposit liability of SFSP will be settled.

This article first appeared/also appeared in https://adaderana.lk