July 01, 2013 (LBO) – Sri Lanka’s Central Bank said People’s Leasing and Finance Plc, the island’s largest non-bank lender has been appointed managing agent for Central Investments and Finance Plc, which had seen liquidity issues. . “The Managing Agent will be expected to improve the financial status of CIFL within a reasonable period of time, and Central Bank will closely monitor the progress,” the regulator said in a statement.
“In the meantime, all present members of the Board of CIFL would be expected to extend their full co-operation to the Managing Agent to resolve the current issues faced by the company, while they would also be held responsible for the settlement of liabilities of depositors and other creditors prior to the appointment of the Managing Agent.”
Finance companies which can take public deposits are regulated by the Central Bank.