Oct 26, 2011 (LBO) – Nation Lanka Plc, a listed company said Sri Lanka’s Central Bank has given approval for it to be registered as licensed finance company subject to several conditions. But interest rates are now moving up, amid defence of a dollar peg by the monetary authority.
The firm had to put up 400 million rupees in core capital, amend its articles to comply with laws governing finance businesses, submit a business plan to overcome losses, sell off loss making subsidiaries and real estate giving no returns within the next two years.
The firm also has to comply with rules relating to leasing businesses.
Finance companies have become more viable amid lower interest rates and a boom in vehicle and consumer durables sale in the island.