Central Bank freezes assets of 6 companies and their directors

The Central Bank of Sri Lanka issued freezing orders against six companies and their directors to prevent them from disposing of, transferring, or dealing with their properties and assets.

The Central Bank stated in a release on September 22 that the orders were issued under Section 44 of the Finance Business Act No. 42 of 2011 and were subsequently confirmed and extended by the Colombo High Court.

The targeted entities comprise 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, and Eyon Lanka Investment & Film Production International Company (Private) Limited.

Investigations into Kasagala Green Plantation and Ceylon Green Life Plantation are proceeding under Section 42 of the Finance Business Act.

The regulatory authority determined that the remaining four companies operated finance businesses or accepted deposits in violation of Section 2 of the Act.

Members of the public were cautioned by the Central Bank to deposit funds exclusively with legally authorised institutions licensed under the Banking Act or Finance Business Act, or specifically exempted from those laws.

Additional investigations are ongoing regarding several other institutions and individuals following complaints concerning potential unauthorised finance businesses and deposit-taking activities.

The Central Bank previously confirmed its investigation into Kasagala Green Plantation to ascertain whether it conducted finance business or accepted public deposits in breach of the Finance Business Act.