The Monetary Board of Central Bank of Sri Lanka issued a notice of cancellation of the license issued to Central Investments and Finance PLC (CIFL) to carry on activities as a non-banking financial institution.
According to a release issued by the Central Bank, CIFL was confronted with severe liquidity crisis since 2013 due to mismanagement and other irregular transactions carried out by the management of that company.
It has also been observed that the directors and senior management of these companies have fraudulently inflated the value of the assets and the examination of the documents relating to such assets has revealed that those are either fictitious or entangled with encumbrances.
The total deposit liability of the company is about Rs. 3.5 billion and the number of depositors are 4,092; of which, 2,501 depositors are with deposits less than Rs. 600,000.
The Central Bank notes, 61% of depositors will be fully settled with their deposits.