The Central Bank of Sri Lanka (CBSL) has cancelled the finance business licence of Nation Lanka Finance PLC with effect from July 3, 2026, and will proceed with winding up the company under the Banking (Special Provisions) Act, No. 17 of 2023.
CBSL said it had placed the company under administration on July 4, 2025, after continuous violations of the Finance Business Act despite multiple regulatory interventions.
According to the Central Bank, several attempts were made over the past year to revive the company, including exploring restructuring options, seeking acquisitions by licensed banks and finance companies, and inviting potential investors. However, none of these efforts resulted in a viable solution.
The Central Bank said the company’s continued financial deterioration made it necessary to cancel its licence and begin liquidation in the interest of depositors and other stakeholders.
Under the Sri Lanka Deposit Insurance Scheme (SLDIS), insured depositors will receive compensation of up to Rs. 1.1 million per depositor. CBSL said this would fully compensate approximately 99.1% of the company’s depositors, while the remaining 0.9% would receive Rs. 1.1 million as part settlement, with any outstanding balance to be recovered through the liquidation process, subject to the priority of claims.
The Central Bank said further details on the compensation process, including payment dates and procedures, will be announced in due course. It also advised all borrowers of Nation Lanka Finance PLC to continue settling their dues through bank accounts maintained in the company’s name. (Newswire)