Central Bank increases compensation under SLDILSS
The Monetary Board of the Central Bank of Sri Lanka (CBSL) last week decided to increase the maximum compensation payment under SLDILSS from Rs. 600,000 to Rs. 1,100,000, the regulator noted recently.
The decision has been reportedly taken to provide further relief to the depositors of financial institutions regulated by CBSL in the event of a cancellation or suspension of the licences of such institutions.
Accordingly, the depositors of six finance companies – Central Investments and Finance PLC (CIFL), The Standard Credit Finance Ltd. (TSCFL), TKS Finance Ltd. (TKSFL), The Finance Company Ltd. (TFC), ETI Finance Ltd. (ETIFL), and Swarnamahal Financial Services PLC (SFSP) – whose licences have been cancelled or suspended by the Monetary Board are eligible to receive the revised compensation amount.
“The depositors of the aforementioned companies, who have yet not obtained any compensation payment, are also requested to apply for compensation under the revised maximum amount of Rs. 1,100,000,” the Central Bank added.
The Resolution and Enforcement Department of CBSL is currently taking necessary measures to commence the payment of additional compensation expeditiously. The payment mechanism and the date of commencement of payments under the increased compensation threshold will be notified by CBSL in due course, the regulator added.
“The increase of the maximum compensation payment will result in an additional payment of Rs. 9.8 billion for the depositors of the six companies, while the percentage of depositors that can be fully compensated will be increased to 94.0,” it added.