Payment of compensation for depositors of Swarnamahal Financial Services PLC (SFSP) will recommence under the Sri Lanka Deposit Insurance and Liquidity Support Scheme, the Central Bank announced.

A public notice by the Central Bank said that eligible depositors/relevant legal beneficiaries of eligible depositors of SFSP could receive compensation payments starting from today (June 9). The payments are expected to continue until 12 July 2024. However, in the case of appointment of a liquidator prior to 12 July 2024, by a competent court in respect of the liquidation of SFSP, compensation payment under SLDILSS will be immediately discontinued, the CBSL said. Accordingly, the eligible depositors/relevant legal beneficiaries of eligible depositors who have not yet obtained compensation subject to a maximum of Rs.1,100,000 can obtain their claims from any branch of People’s Bank starting today by producing relevant documents.

Due to the continuously deteriorating financial condition and non-availability of a viable revival plan, the Monetary Board of the Central Bank suspended the business of SFSP and its parent company ETI Finance Ltd. 

In December 2022, the Central Bank cancelled the business license and registration of the company.