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.