The Monetary Board of the Central Bank of Sri Lanka (CB) has directed Swarnamahal Financial Services PLC (SFSP) to resume business for a limited period of six months with effect from October 13 in terms of Section 31(5)(a) of the Finance Business Act, No. 42 of 2011 (FBA), for the purpose of exploring the possibility of absorbing the company to the “Master Plan for Consolidation of Non-Bank Financial Institutions Sector”.
In a media release on Wednesday, the CB said the Panel of Management appointed by the Monetary Board has been authorised to continue managing the affairs of SFSP, and to initiate and facilitate the aforesaid process, while directors of SFSP shall carry out only the functions that will be authorised by the Director, Department of Supervision of Non-Bank Financial Institutions (D/SNBFI) and/or the Panel.
The CB also said the SFSP has not been permitted to carry on any finance business or other business whatsoever, except executing the aforementioned process.
“Therefore, the public is kindly 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 following bank accounts under the name of Swarnamahal Financial Services PLC and maintain records as evidence for all payments, to avoid any possible litigation against them for non-repayment of dues,” the statement said.