CBSL orders resumption of Swarnamahal Financial Services for six months

The Monetary Board of the Central Bank has made an order permitting Swarnamahal Financial Services PLC (SFSP) to resume business for a limited period of six (06) months with effect from today (13), the Central Bank announced.

The permission has been given in terms of Section 31(5)(a) of the Finance Business Act, No. 42 of 2011 (FBA), for the purpose of exploring the possibility of absorbing the Company to the “Master Plan for Consolidation of Non-Bank Financial Institutions Sector”.

The Panel of Management appointed by the Monetary Board (Panel) has been authorised to continue managing the affairs of SFSP, and to initiate and facilitate the aforesaid process, while directors of SFSP shall carry out only the functions that will be authorised by the Director, Department of Supervision of Non-Bank Financial Institutions (D/SNBFI) and/or the Panel.

The Central Bank also informed the public that SFSP has not been permitted to carry on any finance business or other business whatsoever, except executing the aforementioned process.

“Therefore, the public is kindly requested to refrain from placing deposits or engaging in any other business with SFSP in any manner, other than settlement of contractual obligations to SFSP. All debtors or any other parties who have payables to SFSP are advised to settle their contractual obligations to SFSP on time, only through permitted bank accounts under the name of Swarnamahal Financial Services PLC and maintain records as evidence for all payments, to avoid any possible litigation against them for non-repayment of dues,” CBSL said.