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Jan. 31 (LBO) ? Sri Lanka's leasing industry is asking authorities to allow them to raise public deposits in return for infusing higher capital into the business, industry officials said.
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Jan. 31 (LBO) ? Sri Lanka's leasing industry is asking authorities to allow them to raise public deposits in return for infusing higher capital into the business, industry officials said. The industry is also asking Central Bank, their present regulator, to amend the island's Banking Act and allow firms to raise funds by issuing promissory notes.
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Recent changes to the Banking Act expanded the scope of deposits to cover illegal finance schemes that are proliferating in the country.


Under the new definition, if funds are borrowed with the objective of re-lending, then it becomes a deposit.

The definition also covered promissory notes (pro notes) and credit investment schemes that offer people sky high interest rates in return for investing in non-financial products like trees.

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"Regulatory officials have agreed to our proposal on pro notes.

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But it has to first go before the monetary board and then to parliament," D P Kumarage, President of the 48-member Leasing Association and CEO of Peo
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