The CBSL asset freeze covers six companies and their directors, with the Colombo High Court confirming and extending the orders.
COLOMBO — The Central Bank of Sri Lanka has frozen the assets of six companies and their directors under the Finance Business Act, as the regulator intensifies action against suspected unauthorised finance businesses and deposit-taking.
Orders issued by the Director of the Department of Supervision of Non-Bank Financial Institutions prevent the companies and their directors from disposing of, transferring or otherwise dealing with their properties and other assets.
The Colombo High Court has subsequently confirmed and extended the freezing orders.
The six companies currently subject to the restrictions are:
- Kasagala Green Plantation (Private) Limited
- Ceylon Green Life Plantation (Private) Limited
- Singhe Capital Investment Limited
- Pro Shop Advertising Holdings (Private) Limited
- Athens International Education Centre (Private) Limited
- Eyon Lanka Investment & Film Production International Company (Private) Limited
Two Companies Remain Under Investigation
Kasagala Green Plantation and Ceylon Green Life Plantation are being investigated under Section 42 of the Finance Business Act No. 42 of 2011.
Their inclusion in the freezing orders should not be interpreted as a determination that they have violated the Act. The Central Bank’s September 22 statement identifies the two companies as being under investigation.
A different regulatory position applies to the remaining four companies.
CBSL said it has already determined that Singhe Capital Investment, Pro Shop Advertising Holdings, Athens International Education Centre and Eyon Lanka Investment & Film Production International Company carried on finance business and/or accepted deposits in contravention of Section 2 of the Finance Business Act.
The freezing orders were issued under Section 44 of the Act.
Central Bank Warns Public Over Deposits
Alongside the enforcement action, CBSL urged the public to place deposits only with institutions legally authorised to accept them.
Under Sri Lanka’s regulatory framework, institutions licensed under the Banking Act No. 30 of 1988 or the Finance Business Act No. 42 of 2011, together with institutions specifically exempted under those laws, are permitted to accept deposits from the public.
The warning is particularly important for people considering investment or deposit arrangements with businesses operating outside the conventional banking and licensed finance-company sector.
Members of the public should verify whether an institution is legally authorised to accept deposits rather than relying solely on advertising, investment promises or the nature of the business through which an investment is marketed.
CBSL warned that depositing money with unauthorised institutions could expose members of the public to the risk of losing their funds.
Further Investigations Underway
The September 22 action does not appear to mark the end of the regulator’s scrutiny.
Based on complaints it has received, the Central Bank said investigations are underway into several other institutions and individuals to determine whether they have carried on finance business or accepted public deposits in contravention of the Finance Business Act.
CBSL has asked members of the public to report institutions or individuals they suspect of accepting deposits without the required legal authority.
The latest freezing orders provide an immediate restriction on dealings involving the assets of the six named companies and their directors while the regulatory and legal processes concerning the entities continue.
