Jan 02, Colombo: The Central Bank of Sri Lanka has decided to take regulatory action against two financial services, ETI Finance Ltd. (ETIF) and Swarnamahal Financial Services PLC (SFSP) due to their weak performance.
Having considered the weak financial performances of the two companies, the Monetary Board of the Central Bank at its meeting on Monday (1st January), has decided to take the regulatory action 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 Monetary Board has taken the temporary measure with immediate effect under the provisions of the Finance Business Act No. 42 of 2011.
Accordingly, a panel will be appointed to manage the affairs of both companies and the withdrawal of maturing deposits and renew such deposits will be restricted for a period of six months. The payment of interest due for deposits will be continued 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 depositors of the 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.
The depositors may contact the Department of Supervision on Non-Bank Financial Institutions of the Central Bank through the telephone numbers 011 2477258 or 011 2477229, for further clarification.