Regulatory action by the Central Bank on ETI Finance Ltd and Swarnamahal Financial Services PLC with immediate effect

According to the Press Release, CBSL has decided to take following regulatory measures on both companies. 

1. Appointing a panel to manage the affairs of both companies.  

2. Restrict the withdrawal of maturing deposits and renew such deposits for a period of six months. 

3. The payment of interest due for deposits as per agreed terms and conditions. 

Above regulations has imposed as a temporary measure, with the view of to ensure safety and soundness of the financial system. The Monetary Board of the Central Bank of Sri Lanka at its meeting held on 01.01.2018, had considered the weak financial performances of the ETI Finance Ltd. (ETIF) and Swarnamahal Financial Services PLC (SFSP) with a view to safeguard the interests of the depositors and other creditors of the two companies.
CBSL has decided to take above said regulatory action under the provisions of the Finance Business Act No. 42 of 2011.

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 two companies have 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, CBSL further stated.

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.

- Amali Jayaweera