The master plan for the consolidation of non-banking financial institutions is accelerated – Adaderana Biz

Under the Master Plan for the Consolidation of Non-Banking Financial Institutions (the Master Plan) implemented by the Central Bank of Sri Lanka (CBSL), the following 9 companies have already introduced new 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.

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

  1. Assetline Leasing Co Ltd acquisition of the commercial financing license of Kanrich Finance Ltd and settlement of its
  2. LB Finance PLC acquisition then merger of Multi Finance
  3. SMB Leasing PLC acquisition of Swarnamahal Financial Services PLC’s commercial financing license and settlement of its
  4. Commercial Leasing & Finance PLC acquisition and subsequent merger of Sinhaputhra Finance
  5. HNB Finance PLC acquisition and subsequent merger of Prime Finance
  6. LOLC Finance PLC – merger of Commercial Leasing & Finance

As a result of the above developments, the non-banking financial institutions sector has seen significant improvement in compliance with regulatory capital requirements and recorded the lowest levels of non-compliance in recent times.

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