Crisis-hit Standard Credit Finance licence cancelled

Sri Lankan authorities on Wednesday cancelled the operating licence of crisis-hit The Standard Credit Finance Ltd (TSCFL) which has been facing a liquidity crisis since 2008. 

In a public statement, the Central Bank (CB), which took the decision said that depositors of the company have been unable to withdraw their money over the last 10 years. 
“All efforts made to revive the company through different strategies have been failed. The continuity of current status will further detrimental to the interest of depositors and other stakeholders of the company. Therefore, Monetary Board of the Central Bank, has decided to cancel the Licence issued to TSCFL with effect from July 25,” it said.

The company’s Certificate of Registration as a Registered Finance Leasing Establishment has also been cancelled which means TSCFL is not permitted to grant new finance lease facilities from Wednesday.
“The Sri Lanka Deposit Insurance and Liquidity Support Scheme (SLDILSS) will take necessary actions to pay compensation to the insured depositors of TSCFL up to a maximum of Rs.600,000 per depositor as per the regulations of the SLDILSS,” the statement added. 
The CB said depositors may be able to recover part of their remaining deposits in the process of liquidation subject to the priority of claims.
All debtors of the company are required to pay their dues to the company through a bank account announced by the company. “The Central Bank wishes to emphasize that legal actions will be taken against the responsible parties for the mismanagement and fraudulent activities of the company,” the statement added. – ENDS -