Monetary Board takes action

The Monetary Board of the Central Bank of Sri Lanka has determined that the following persons/organisations were carrying on finance business without authority and directed such persons/organisations to comply with the requirements of the Finance Companies Act (FCA) and apply for registration under the FCA within one month from September 24. i.e., on or before October 10, and the public was informed accordingly:

Sakvithi House Constructions (Pvt) Ltd., Okanda Finance (Pvt) Ltd., Nadini Finance (Pvt) Ltd., Narangoda Liyanage Don Minol Hasantha Narangoda, the owner of the business name 'Sriyavi Homes' Lands and Investments', Piyadasa Ratnayake (Danduwam Mudalali) and D. K. Udayasiri.

Four of the persons/organisations-Sakvithi House Constructions (Pvt) Ltd., Nadini Finance (Pvt) Ltd., Narangoda Liyanage Don Minol Hasantha Narangoda, the owner of 'Sriyavi Homes' Lands and Investments and D. K. Udayasiri have not submitted applications to register under the FCA.

Therefore, the Monetary Board has under Section 11(2) of the FCA, directed them to: a. repay deposit liabilities within one month from October 30 and b. furnish relevant details, including a list of depositors, within 15 days from October 30 to the Director, Department of Supervision of Non-Bank Financial Institutions of the Central Bank.

Of the six persons/organisations, only Okanda Finance Ltd. has submitted an application for registration, which was received by the Central Bank on October 24. However, this application does not fulfil the requirements for obtaining registration as a finance company. Therefore, Okanda Finance Ltd has now been directed to rectify the deficiencies within one month from November 4 to consider its application for registration.

Piyadasa Ratnayake alias "Danduwam Mudalali" has informed the Central Bank of his intention to submit an application and has requested an extension of time, as he had been in remand custody.