The Central Bank yesterday said the country’s non-bank financial institutions (NBFI) sector has seen “significant improvement “ in terms of regulatory capital requirements as a result of its Masterplan for Consolidation of Non-Bank Financial Institutions.

According to a Central Bank statement, nine finance companies have introduced fresh capital to the tune of Rs.12.56 billion to meet regulatory capital requirements. Those companies are: Sarvodaya Development Finance PLC, Dialog Finance PLC, Asia Asset Finance PLC, Lanka Credit and Business Finance PLC, People’s Merchant Finance PLC, Softlogic Finance PLC, Merchant Bank of Sri Lanka & Finance PLC, UB Finance Co Ltd and Richard Pieris Finance Ltd.

In addition 12 companies have submitted acquisition/consolidation plans to the Central Bank and had obtained preliminary approvals.

Those companies are: Assetline Leasing Co. Ltd—acquisition of finance business licence of Kanrich Finance Ltd. and settlement of its deposits; LB Fiannce—acquisition and subsequent amalgamation of Multi Finance PLC.; SMB Leasing PLC – acquisition of finance business licence of Swarnamahal Financial

Services PLC and settlement of its deposits; Commercial Leasing & Finance PLC—acquisition and subsequent amalgamation of Sinhaputhra Finance PLC; HNB Finance PLC—acquisition and subsequent amalgamation of Prime Finance PLC and LOLC Finance PLC—amalgamation of Commercial Leasing & Finance PLC.

“As a result of the above developments, the Non-Bank Financial Institutions sector has witnessed a significant improvement in compliance with regulatory capital requirements and has recorded the lowest non-compliance levels during recent times,” a Central Bank statement said.