Nine companies introduce over Rs. 12 b fresh capital
The Central Bank of Sri Lanka (CBSL) is implementing the Masterplan for Consolidation of Non-Bank Financial Institutions (NBFIs) with the expectation of fast-tracking such institutions. Nine companies have already introduced fresh capital of Rs. 12.56 billion to meet regulatory capital requirements: Sarvodaya Development Finance PLC, Dialog Finance PLC, Asia Asset Finance PLC, Lanka Credit and Business Finance PLC, People’s Merchant Finance PLC, Softlogic Finance PLC, Merchant Bank of Sri Lanka and Finance PLC, UB Finance Co. Ltd., and Richard Pieris Finance Ltd.In addition, 12 companies have submitted their acquisition/consolidation plans to the CBSL and obtained relevant preliminary approvals.Accordingly, Assetline Leasing Co. Ltd. has submitted acquisition of the finance business licence of Kanrich Finance Ltd. and settlement of its deposits, LB Finance PLC has submitted acquisition and subsequent amalgamation of Multi Finance PLC, SMB Leasing PLC has submitted acquisition of finance business licence of Swarnamahal Financial Services PLC and settlement of its deposits, Commercial Leasing and Finance PLC has submitted acquisition and subsequent amalgamation of Sinhaputhra Finance PLC, HNB Finance PLC has submitted acquisition and subsequent amalgamation of Prime Finance PLC, and LOLC Finance PLC has planned the amalgamation of Commercial Leasing and Finance PLC. Therefore, as a result of the above developments, the NBFIs sector has witnessed a significant improvement in compliance with regulatory capital requirements and has recorded the lowest non-compliance levels during recent times.
