Kanrich Finance directed to settle public liabilities in full before end-February 2023

The Monetary Board of the Central Bank of Sri Lanka (CBSL) yesterday directed Kanrich Finance Limited (KFL) to settle in full its public liabilities within the period from December 26, 2022 to February 28, 2023.

The directive is a measure taken by the monetary watchdog to strengthen the non-bank financial institutions sector, under the ‘Masterplan for Consolidation’.

In a statement to the media yesterday, the Supervision of Non-Bank Financial Institutions Department said the decision was made due to continuous capital deficiencies faced by KFL. 

“The aforesaid direction was issued in the best interest of depositors and promissory note holders of KFL, subsequent to securing measures to have adequate funds available for KFL to fully settle its public liabilities and further directing KFL to exit from the finance business after such settlement,” the CBSL said.

Accordingly, KFL will take the necessary actions to settle the entirety of public liabilities with interest accrued up to December 26, 2022, at agreed upon interest rates. 

The financial sector regulator said all depositors and promissory note holders of KFL are requested to avail this settlement plan and claim their funds before February 28, 2023.