CB restricts deposit withdrawals of ETI Finance, Swarnamahal Financial Services

Jan 02, 2018 (LBO) – Sri Lanka’s Central Bank has restricted the withdrawal of maturing deposits and renewal of such deposits of ETI Finance and Swarnamahal Financial Services for six months.

Central Bank said in a statement that the Monetary Board at its meeting held yesterday decided to appoint a panel to manage the affairs of both companies.

They have also decided to pay the interest due for deposits as per agreed terms and conditions.

According to the Monetary Board, above regulatory actions will be applied as a temporary measure, under the provisions of the Finance Business Act, with immediate effect.

“In the meantime, the companies can finalize the negotiations with the prospective investors and the Central Bank will facilitate suitable investors as per the applicable laws and regulations,” Central Bank said.

“The depositors of the above two companies are further informed that the Central Bank is taking further measures and closely monitoring the operations of the companies to protect the rights of the depositors,”

“Therefore, the depositors are kindly requested to cooperate with the Central Bank in its effort to ensure the stability of the ETIF and SFSP.”