The Central Bank of Sri Lanka (CBSL) has decided to initiate resolution actions on Nation Lanka Finance PLC (NLFP), a Licensed Finance Company under the Finance Business Act, No. 42 of 2011 (FBA).
According to a CBSL statement, the resolution actions are to be initiated against NLFP effective from today, 04 July 2025, under the provisions of the Banking (Special Provisions) Act, No. 17 of 2023 (BSPA).
Nation Lanka Finance PLC has continuously been violating/contravening the provisions of the FBA and several Directions and Rules issued thereunder. Further, the financial condition of NLFP is not satisfactory due to a deficient capital level, poor asset quality, continuous losses and failure in repaying depositors’ money on demand or at maturity, etc, the CBSL said.
The Central Bank went on to note that despite several time extensions granted to NLFP to comply with the provisions of the FBA and Directions and Rules issued thereunder, no satisfactory progress was made by NLFP in order to revive from its critical condition, and to comply with such provisions, directions and rules.
Given the absence of satisfactory progress at NLFP, despite the implementation of numerous regulatory measures, the CBSL has decided to initiate resolution actions on NLFP, with the decision to initiate action being taken consequent to a thorough assessment of the financial/non-financial condition of the company.
Given the above, the CBSL has also decided to appoint an Administrator to the NLFP in line with the resolution process, under the BSPA. Accordingly, P W D N R Rodrigo was appointed as the Administrator of NLFP for a period of six months, effective from today.
The Administrator will assume full control over all the assets, rights, business and affairs of the NLFP and carry on the business and affairs of the company in the name and on behalf of the company. (Newswire)
