Mar 20, 2012 (LBO) – Sri Lanka’s banking regulator has tightened regulation of finance companies, ordering those firms that are not licensed finance companies to remove words relating to finance from their names. It is also not applicable to an association of finance companies formed for the protection of their interests, trade unions which are an association or combination of workers who are employees of a finance company, or educational bodies or consultancy services.
The central bank also said approved micro-finance business registered under the Finance Business Act may continue to use the words ˜micro finance’ as part of their names or descriptions until a proposed Micro Finance Act is enacted. The order came in a central bank notice to companies using the word ˜finance,’ financing’ or ˜financial’ as part of their name or description.
Under the Finance Business Act, “no entity other than a licensed finance company shall use the words ˜finance’, ˜financing’ or ˜financial’ as part of its name or description,” said a statement from the bank’s Department of Supervision of Non-Bank Financial Institutions.
It ordered firms other than a licensed finance company whic