Central Bank decides to cancel licence of Standard Credit Finance Limited

July 25, 2018 (LBO) – Monetary Board of the Central Bank of Sri Lanka has decided to cancel the Licence issued to Standard Credit Finance Limited with effect from today. Accordingly, Standard Credit Finance Limited is not permitted to engage in Finance Business under the Finance Business Act. Further, the Director of the Department of Supervision of Non- Bank Financial Institutions of the Central Bank has decided to cancel the Certificate of Registration as a Registered Finance Leasing Establishment. Accordingly, the company is not permitted to grant new finance lease facilities as well from today. “Sri Lanka Deposit Insurance and Liquidity Support Scheme will take necessary actions to pay compensation to the insured depositors of TSCFL up to a maximum of Rs.600,000/- per depositor,” the Central Bank said. “Further, depositors may be able to recover part of their remaining deposits in the process of liquidation subject to the priority of claims.” The Central Bank said in a statement that all debtors of the company are required to pay their dues to the company through a bank account announced by the company. “Central Bank of Sri Lanka wishes to emphasize that legal actions will be taken against the responsible parties for the mismanagement and fraudulent activities of the company.” The Standard Credit Finance Limited, a Licensed Finance Company licensed under the Finance Business Act No. 42 of 2011 was facing a liquidity crisis since 2008. Depositors of the company have been unable to withdraw their money over the last ten years. The Central Bank said all efforts made to revive the company through different strategies have been failed and the continuity of current status will further detrimental to the interest of depositors and other stakeholders of the company.