The Central Bank of Sri Lanka has decided to cancel the licence of Central Investments and Finance (CIFL).
In its statement, the central bank stated that CIFL was affected by severe financial problems over the last four years due to mismanagement and fraudulent activities.
The depositors of the bank have also failed towithdraw their money during the last four year period, while all revival attempts to strengthen the company through various processes also failed.
To avoid further harm to the interests of the depositors and other stakeholders of the entity, the central bank decided to withdraw the licence under issued to CIFL under the Finance Business Act No. 42 of 2011 (FBA) with immediate effect.
Central Bank of Sri Lanka has also planned to initiate legal actions against the responsible parties for the mismanagement and fraudulent activities.
Following the revocation of the licence, CIFL has been prohibited to engage in financial business.
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Sri Lanka Deposit Insurance and Liquidity Support Scheme will initiate necessary actions to compensate the insured depositors under the applicable laws and regulations.
The depositors, subject to the priority of claims, can also recover some of their dues in the process of liquidation.
All debtors are also required to pay their dues to CIFL through a particular bank account.