Central Bank increases maximum compensation under deposit insurance scheme by Rs.500,000

The Monetary Board of the Central Bank has decided to increase the maximum compensation payment under the Sri Lanka Deposit Insurance and Liquidity Support Scheme (SLDILSS) from Rs.600,000 to Rs.1,100,000, by Rs.500,000.

This decision has been taken to provide further relief to the depositors of financial institutions regulated by CBSL in the event of a cancellation or suspension of the licences of such institutions.

Accordingly, the depositors of six (6) finance companies, namely, Central Investments and Finance PLC (CIFL), The Standard Credit Finance Limited (TSCFL), TKS Finance Limited (TKSFL), The Finance Company PLC (TFC), ETI Finance Limited (ETIFL) and Swarnamahal Financial Services PLC (SFSP) whose licences have been cancelled or suspended by the Monetary Board are eligible to receive the revised compensation amount.

The depositors of the aforementioned companies who have yet not obtained any compensation payment are also requested to apply for compensation under the revised maximum amount of Rs.1,100,000.

“The Resolution and Enforcement Department of CBSL is currently taking necessary measures to commence the payment of additional compensation expeditiously,” the Central Bank said in a statement.

“The payment mechanism and the date of commencement of payments under the increased compensation threshold will be notified by CBSL in due course.”

The increase of the maximum compensation payment will result in an additional payment of Rs.9.8 billion for the depositors of the six (06) companies, while the percentage of depositors that can be fully compensated will be increased to 94.0.

Further details in this regard may be obtained from the Resolution and Enforcement Department via telephone numbers 0112477261 and 0112398788.