CBSL to Cancel Nation Lanka Finance Licence; Liquidation Process Begins

The Central Bank of Sri Lanka (CBSL) has officially cancelled the finance business licence of Nation Lanka Finance PLC (NLFP) effective today, July 3, 2026, moving forward with a formal winding up of the company.

Full Statement

The Central Bank of Sri Lanka (CBSL) initiated resolution actions on Nation Lanka Finance PLC (NLFP) effective from 04.07.2025 under the provisions of the Banking (Special Provisions) Act, No. 17 of 2023 (BSPA). This action was taken following NLFP’s continuous violations of the provisions of the Finance Business Act, No. 42 of 2011, despite the implementation of numerous regulatory measures by CBSL. Accordingly, Mr. P W D N R Rodrigo was appointed on the same day as the Administrator to assume full control over all assets, operations and affairs of NLFP, and to carry on the business and affairs of the company in the name and on behalf of the company.

We wish to inform the general public that CBSL, in its capacity as the Resolution Authority, has continuously pursued multiple strategic interventions to stabilize and resolve the position of NLFP. CBSL’s extensive resolution efforts, carried out in close coordination with the appointed Administrator, involved, exploring various structural options to revive the company, actively promoting potential acquisition of NLFP by already established/stable Licensed Commercial Banks (LCB) or Finance Companies (FCs) in the financial industry and formally issuing an open invitation for expressions of interest to secure viable investors.

Despite these exhaustive and repeated efforts, a viable and sustainable outcome has not been achieved. In light of the continued deterioration of the company’s financial position, and considering that the continuation of its current status would be further detrimental to the interests of depositors and other stakeholders, CBSL has decided, as a final step in the resolution process, to cancel the licence issued to NLFP to carry on finance business with effect from 03.07.2026 and to proceed with the winding up of the company in terms of the provisions of Part V of the BSPA.

The Sri Lanka Deposit Insurance Scheme (SLDIS) will take necessary actions to pay compensation to the insured depositors of NLFP up to a maximum of Rs.1,100,000/- per depositor in terms of the BSPA. This would enable full settlement for approximately 99.1% of the company’s total depositors, while each of the remaining 0.9% of depositors will also receive Rs.1,100,000/- as part settlement of their deposit amount. The amount of the compensation payable will be calculated after amalgamating all eligible deposits and unpaid accrued interest for each individual depositor as at the date of licence cancellation. Any balance remaining thereafter may be recovered by depositors in the process of liquidation, subject to the priority of claims as stipulated in the BSPA. Compensation can be obtained by submitting a duly filled claim within a maximum period of 6 years from the date of cancellation of the licence, i.e,. on or before (02.07.2032). The information regarding the compensation mechanism under the SLDIS for deposits held with NLFP, including the mode of payment, applicable procedures, and the commencement date of compensation payments, will be communicated in due course through newspapers and the CBSL website. Until such time, depositors are kindly requested to have their original deposit certificates and relevant identification documents (National Identity Card, other registration certificates, etc.) ready.

All debtors of NLFP are advised to pay their dues to NLFP on time, only through a bank account under the name of NLFP and maintain records for all payments to avoid any legal action being taken against them for non-payment.

For further inquiries;