August 16, 2018 (LBO) – Colombo Stock Exchange listed Swarnamahal Financial Services (SFS) reported a loss of Rs40mn for the quarter ended June 2018.
The balance sheet of the company is shrinking, likely in accordance with the CBSL initiatives to restructure the EAP group registered finance companies. Total assets were down 20% in the 3 month period to Rs2bn. Deposits were also down 14% in the 3 month period to Rs3bn.
The firm has a negative equity position of over Rs1bn, making a capital infusion or government bailout necessary if the depositors are to be made whole. The company is 90% owned by ETI Finance, another much larger company also likely in need of a bailout.