Central Bank cautions against use of the word ‘finance’

The Central Bank on Thursday cautioned the Sri Lankan public against the use of the word ‘finance’ other than by an authorised finance company or an organization authorised to do so.

“The public is hereby informed that, as per Section 10(2) of the Finance Business Act, No. 42 of 2011 (the Act), no person, other than a finance company and an institution specified in Section 10(6) of the Act, shall use the terms ‘finance’, ‘financing’, or ‘financial’ alone or in combination with another word or any of its derivatives or its transliterations or their equivalents in any language, as part of the name or the description or the business name of such person without prior written approval of the Central Bank of Sri Lanka,” a statement from the banking regulator said.

In terms of Section 56(4) of the Act, any person who contravenes or fails to comply with the said provision is guilty of an offence under the Act, it said adding: “The public is strongly advised to adhere to the aforesaid legal requirement.”