Pay Up

Nov 04, 2008 (LBO) – Sri Lanka’s central bank said it has ordered four unlicensed finance companies that failed to register with the regulator to repay depositors, and given time for two more to comply with its rules. A bank statement said four of six organisations and individuals carrying on finance business without authority had failed to register under the finance companies act despite being asked to do so.

It named them as Sakvithi House Constructions (Pvt) Ltd., Nadini Finance (Pvt) Ltd., Narangoda Liyanage Don Minol Hasantha Narangoda who is the owner of the business name ˜Sriyavi Homes Lands & Investments’, and D K Udayasiri.

The statement said the central bank Monetary Board has asked them to repay deposit liabilities within one month from October 30, 2008.

They were also ordered to provide details, including lists of depositors, by November 14 to the Director, Department of Supervision of Non-Bank Financial Institutions of the Central Bank.

The owner of one firm, Sakvithi Ranasinghe has fled the country, leaving hundreds of depositors attracted by his promise to pay high interest rates, with the prospect of losing their savings.

The central bank crackdown came after the scandal i