The Central Bank of Sri Lanka (CBSL) has issued a strong warning to businesses and individuals using the word ‘Finance’ in their company names without proper authorization, emphasizing that such usage is a violation of the Financial Business Act, No. 42 of 2011.
In an official statement, CBSL clarified that under subsection 10(2) of the Act, only licensed financial institutions or those specified under subsection 10(6) are legally permitted to use terms like ‘money,’ ‘financing,’ or ‘finance’ in their company names or descriptions. This restriction applies to both standalone usage and combinations with other words, including abbreviations or translations in other languages. Any entity using these terms without prior written approval from CBSL will be deemed to be in violation of the Act.
Furthermore, the Central Bank has stressed that non-compliance will result in legal action, as stipulated under Section 56(4) of the Financial Business Act. Offenders may face severe penalties, including fines or other legal repercussions.
This warning comes amid growing concerns that unregulated businesses may mislead the public by falsely presenting themselves as financial institutions. The CBSL is actively monitoring and taking steps to prevent fraudulent and misleading practices in the financial sector.
Additionally, the Central Bank has urged the public to remain vigilant and verify whether a financial institution is legally registered before engaging in any business transactions. Consumers are advised to check with CBSL’s official records or contact the Financial Intelligence Unit to confirm the legitimacy of any organization using financial terminology in its business name.
CBSL has reaffirmed its commitment to protecting the financial system’s integrity and ensuring that only regulated entities operate within the sector, providing transparent and legally compliant services to the public.
