Depositors of failed finance companies to get extra Rs. 500,000

In an effort to extend further relief measures to depositors of finance companies, the Monetary Board of the Central Bank has decided to increase the maximum compensation payment under Sri Lanka Deposit Insurance and Liquidity Support Scheme (SLDILSS) from Rs. 600,000 to Rs. 1,100,000.

The Central Bank (CB) announced that the decision was made to provide further relief to depositors of financial institutions coming under its regulatory purview, in the event of cancellation or suspension of the licenses of such institutions.

Accordingly, the depositors of six failed finance companies, namely Central Investments and Finance PLC (CIFL), The Standard Credit Finance Limited (TSCFL), TKS Finance Limited (TKSFL), The Finance Company PLC (TFC), ETI Finance Limited (ETIFL) and Swarnamahal Financial Services PLC (SFSP) will be eligible to receive the additional Rs. 500,000.

The CB said that the payment mechanism and the date of commencement of payments under the increased compensation threshold will be notified in due course.