Business News from Sri Lanka: The Finance Company PLC (TFC), a Finance Company authorized under the 2011 Finance Business Act No. 42 (FBA), was greatly affected in 2008 by the failure of several financial institutions within the Ceylinco Group.
Since then, the company’s economic status has gradually worsened and it is presently working with serious liquidity problems that need to be resolved instantly. Although there have been several attempts to identify potential buyers and restructure the business, these attempts have not yet materialized to a satisfactory stage.
After considering TFC’s poor economic performance, the Monetary Board of the Central Bank of Sri Lanka (CBSL) took a number of legislative activities under the FBA regulations with effect from 15 February 2019 in order to protect the interests of the company’s depositors and other stakeholders.
The regulatory measures included suspension of acceptance of fresh deposits, withdrawal of deposits and disbursement of loans and developments to promote TFC’s process of reorganization. The regulatory actions ‘ primary objective was to define a prospective TFC investor within a reasonable period of time. To date, however, TFC has been unable to discover an appropriate investor to revive the business.