The Central Bank has cancelled the Nation Lanka Finance licence and ordered liquidation, with depositors eligible for compensation.
Nation Lanka Finance PLC has lost its finance business licence after the Central Bank of Sri Lanka revoked it with effect from July 3, 2026, and decided to proceed with liquidation.
The Central Bank said the company will now be wound up under the Banking (Special Provisions) Act No. 17 of 2023.
According to the regulator, Nation Lanka Finance PLC continued to violate the Finance Business Act despite several regulatory interventions.
As a result, the Central Bank placed the institution under an administrator on July 4, 2025.
The regulator said it also began a formal resolution process under the Banking (Special Provisions) Act on the same date.
It appointed P.W.D.N.R. Rodrigo as administrator, giving him full authority to manage the company’s assets, operations and business affairs.
Nation Lanka Finance Liquidation Ordered
The Central Bank said it acted as the resolution authority and continued to pursue strategic measures to restore the company’s stability and viability.
These efforts included evaluating several restructuring options and searching for potential investors.
The regulator also issued formal invitations to established licensed commercial banks, finance companies and other interested parties.
However, the Central Bank said those efforts failed to produce a viable and sustainable long-term solution.
Given the company’s continued financial deterioration and the risk to depositors and other stakeholders, the Central Bank decided to cancel the licence and proceed with winding up the company.
Deposit Insurance Compensation
The Sri Lanka Deposit Insurance Scheme will compensate eligible insured depositors of Nation Lanka Finance PLC up to Rs. 1.1 million per depositor.
The compensation will be paid in line with the Banking (Special Provisions) Act.
According to the Central Bank, this will fully reimburse about 99.1% of all depositors.
The remaining 0.9% of depositors will also receive Rs. 1.1 million as a partial payment towards their deposits.
Compensation will be calculated by combining each depositor’s eligible deposits and any accrued but unpaid interest as of the date the licence was revoked.
Any remaining balance may be recovered during liquidation, subject to the priority of claims set out in the Act.
Eligible depositors must submit a completed application within six years of the licence revocation, on or before July 2, 2032.
The Central Bank said it will announce further details on the application process through newspapers and its official website.
Until then, depositors should keep their original deposit certificates and identification documents ready. These include their National Identity Card and other relevant documents needed for verification.
Borrowers Told to Keep Repaying Loans
The Central Bank also instructed all borrowers of Nation Lanka Finance PLC to continue repaying their loans on time.
It said payments should be made only through bank accounts maintained in the name of Nation Lanka Finance PLC.
Borrowers were also advised to keep proper records of all repayments.
The regulator warned that legal action may follow if borrowers fail to make repayments according to their loan agreements.
