Oversight Move

July 01, 2009 (LBO) – Sri Lanka’s registered finance companies would be required to list on the Colombo Stock Exchange as part of an enhanced regulatory framework of the financial sector, Central Bank Governor Nivard Cabraal said. Cabraal said the Securities and Exchange Commission, Sri Lanka Accounting and Auditing Standards Monitoring Board, the Institute of Chartered Accountants, and the Colombo Stock Exchange would be working together.

“We are going towards a consolidated supervision framework,” Cabraal told a forum organized by the Ceylon Chamber of Commerce.

Authorities were also looking at a deposit insurance scheme, Cabraal said.

He said registered finance companies would be required to list in the stock exchange. Unlisted finance companies are even now required to publish accounts in the media.

Smaller finance companies would be asked to merge to make them more stable, Cabraal said.

The Central Bank intervened to stabilize Seylan Bank, a member of the Ceylinco group when there was a run on deposits after an unregulated firm in the group collapsed.

The regulator has also intervened in several finance companies, which are now being re-structured by managing agents.

“I am confident that t