Swarnamahal Financial Services permitted business for six months

The Monetary Board of the Central Bank of Sri Lanka (CBSL) made an order yesterday (13), granting permission to Swarnamahal Financial Services PLC (SFSP) to allow the resumption of business for a period of six months. 

A statement issued by the Department of Supervision of Non-Bank Financial Institutions yesterday (13) stated that this aforesaid permission is with effect from 13 October 2021, in absorbing the company to the “Master Plan for Consolidation of Non-Bank Financial Institutions Sector”.

The Panel of Management (Panel) appointed by the Monetary Board was authorised to continue managing the affairs of SFSP while directors of SFSP are to carry out only the functions that are to be authorised by the Director of the Department of Supervision of Non-Bank Financial Institutions and/or the Panel.

However, the CBSL informed that SFSP has not been permitted to carry on any finance business or other business except executing the aforementioned process. 

Accordingly, the general public is requested to refrain from placing deposits or engaging in any other business with SFSP in any manner, other than settlement of contractual obligations to SFSP. 

All debtors or any other parties who have payables to SFSP are advised to settle their contractual obligations to SFSP on time, only through the bank accounts under the name of Swarnamahal Financial Services PLC, and to maintain records as evidence for all payments in order to avoid any possible litigation against them for non-repayment of dues.

This granting of permission was made under the terms of Section 31 (5) (a) of the Finance Business Act No. 42 of 2011 (FBA).