CB moves against 6 unlicensed financial institutions

By Saman Indrajith

The Central Bank has resorted to legal action against 16 unlicensed financial institutions that operated in the country, Parliament was told yesterday.

A document tabled by Deputy Finance Minister Geethanjana Gunawardena in Parliament yesterday, in response to a query raised by UNP Kurunegala District MP Dayasiri Jayasekera, said that four of them have been referred to the Attorney General to institute legal action. They are Piyadasa Ratnayake, D. K. Udayasiri, Sriyavi Homes, Lands and Investments owned by Narangoda Liyanage Don Minol Hasantha Narangoda and Sakvithi House Constructions Private Ltd.

The rest of the institutions which did not comply with the financial regulations and were not registered with the Central Bank are Jana Shri Financial Corporation Company Ltd, Wasana Finance and Development (Pvt) Ltd, Rural Develop Investments Ltd, Janahanda Investment and Financial Services Ltd, Lawkin Finance Company Ltd, Resources Enhancement and National Development Co (Pvt) Ltd, Emerald Investment Ltd, Rural Development Finance Co. Ltd, Golden Financial Services Company (Pvt) Ltd, Purna Investments and Financial Services Ltd, Okanda Finance Ltd and Kalutota Enterprises.

Three financial institutions engaged in business of obtaining money from public without being registered at the Central Bank had been directed by the Monetary Board of the Bank to repay the deposits mobilized from the public. They are Janatha Pragathi Investments Company (Pvt) Ltd, Varuna Investments Limited and Deshiya Sampath Sanwardena Ha Ayojana Sangamaya.

Swarnamahal Financial Services (Pvt) Limited, which obtained deposits without authority, had been directed to be registered as a finance company, the document said.

The number of financial institutions that have been registered with the Central Banka of Sri Lanka and issued with licences upto now is 88. They are 23 licensed commercial banks, nine licensed specialized banks, 38 registered finance companies and 18 finance leasing establishments registered in terms of Section 3 (C) of the Finance Leasing Act, the document said.

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