Central Bank fast-tracks consolidation of Non-Bank Financial Institutions

Under the Masterplan for Consolidation of Non-Bank Financial Institutions being implemented by the Central Bank of Sri Lanka (CB), the following nine companies have already introduced fresh capital of Rs. 12.56 billion to meet regulatory capital requirements:

Sarvodaya Development Finance PLC, Dialog Finance PLC, Asia Asset Finance PLC, Lanka Credit and Business Finance PLC, People’s Merchant Finance PLC, Softlogic Finance PLC, Merchant Bank of Sri Lanka & Finance PLC, UB Finance Co Ltd and Richard Pieris Finance Ltd, the CB said in a statement on Monday.

In addition, 12 companies have submitted their acquisition/consolidation plans to CB and obtained relevant preliminary approvals as follows:

1. Assetline Leasing Co Ltd - acquisition of finance business licence of Kanrich Finance Ltd and settlement of its deposits.

2. LB Finance PLC - acquisition and subsequent amalgamation of Multi Finance PLC.

3. SMB Leasing PLC - acquisition of finance business licence of Swarnamahal Financial Services PLC and settlement of its deposits.

4. Commercial Leasing & Finance PLC - acquisition and subsequent amalgamation of Sinhaputhra Finance PLC.

5. HNB Finance PLC - acquisition and subsequent amalgamation of Prime Finance PLC.

6. LOLC Finance PLC- amalgamation of Commercial Leasing & Finance PLC.

As a result of the above developments, the Non-Bank Financial Institutions sector has witnessed a significant improvement in compliance with regulatory capital requirements and has recorded the lowest non-compliance levels during recent times, the statement added.