Code of ethics for registered finance companies

Just two years ago, Sri Lanka experienced a calamity of finance company failures causing much damage to public trust and confidence placed on finance companies as a whole.

This can be attributed to the lapses and failure in governance, lack of transparency and unsustainable financial exposure in finance companies, a media release from the Finance Houses Association stated.

The Central Bank of Sri Lanka is making a renewed effort to enhance the quality of governance, equity and transparency of business operations of finance companies by implementing a deposit insurance scheme and introducing regulatory frameworks with new rules and guidelines.

Yet the occasional emergence of financial crisis both locally and globally, leaves much room for anxiety and doubt regarding the adequacy of regulatory frameworks established by the Central Bank, particularly in relation to the financial security of the depositor and the public. The scope of finance operations too has grown much more complex than what it was a few years ago.

In an attempt to address these concerns and to support the Central Bank’s effort to ensure the growth of the sector, The Finance Houses Association has introduced a new Code of Ethics which will be a guideline for business operations of member finance companies in terms of customer services, confidentiality of information, legal obligations, employee recruitment, competitive initiatives and projecting the finance industry image.

The first copy of the Code of Ethics was presented to the Governor of CBSL by the Finance Houses Association at the Governor’s Office, Central Bank of Sri Lanka recently.