The Central Bank of Sri Lanka has announced that the finance business license of Nation Lanka Finance PLC has been revoked with effect from yesterday (July 03) due to continued violations of the provisions of the Finance Business Act.
Accordingly, the Central Bank has announced that it will proceed with the liquidation of the company in accordance with the provisions of the Banking Act.
The Central Bank states that it had previously focused on various structural options to resolve the financial crisis faced by the company, and that steps were taken to attract potential investors and issue open invitations to interested parties from established commercial banks or finance companies.
However, with those efforts failing, special resolution proceedings were initiated against Nation Lanka Finance from 04 July 2025.
Accordingly, with effect from that date, the Central Bank had also taken steps to appoint P.W.D.N.R. Rodrigue as the Administrator to take full control of all the assets, operations and business activities of the company and to conduct business on behalf of the company.
With the cancellation of this license, the process of paying compensation to the insured depositors of the institution will be initiated by the Sri Lanka Deposit Insurance Scheme (SLDIRS).
The statement further states that steps will be taken to pay compensation up to a maximum of Rs. 1,100,000 (eleven hundred thousand) per depositor, and that the final compensation amount will be determined after adding and merging all eligible deposits held by each depositor and the unpaid interest due thereon as of the date of cancellation of the company’s license.
