The Central Bank of Sri Lanka (CBSL) has cancelled the finance business licence of Nation Lanka Finance PLC, effective from July 3.
Accordingly, the liquidation process of the company will be carried out under the Banking (Special Provisions) Act No. 17 of 2023.
The Central Bank states that despite various regulatory interventions, the company had continuously violated the Finance Business Act, leading the Central Bank to place the company under an administrative authority on July 4, 2025.
Following this, under the provisions of the Banking (Special Provisions) Act No. 17 of 2023, the Central Bank initiated resolution measures effective from 04.07.2025.
P.W.D.N.R. Rodrigo was appointed as the administrator to fully manage all assets, operations, and business activities of Nation Lanka Finance PLC from that date.
As the resolution authority, the Central Bank informs the public that it has continuously pursued strategic measures aimed at ensuring the stability and survival of the institution.
Extensive resolution measures included exploring various structural options and issuing an open invitation to viable investors and established, stable licensed commercial banks or finance companies.
However, despite these extensive and continuous efforts, a viable and long-term sustainable solution could not be reached.
Therefore, considering that the continued deterioration of the financial condition of Nation Lanka Finance PLC is detrimental to depositors and other stakeholders, the Central Bank has decided to cancel the licence of the company effective from 03.07.2026 and proceed with the liquidation process as per Part V of the Banking (Special Provisions) Act No. 17 of 2023.
Under the Sri Lanka Deposit Insurance Scheme, the Central Bank will take necessary steps to pay compensation to insured depositors of Nation Lanka Finance PLC, up to a maximum of Rs. 1,100,000 per depositor.
This will enable the full settlement of 99.1% of the company's total depositors, while the remaining 0.9% will also receive Rs. 1,100,000 as a portion of their deposits.
The compensation amount will be calculated by combining all qualified deposits and unpaid accrued interest for each depositor as of the license cancellation date.
Any remaining balance may be recovered during the liquidation process, subject to the priority of claims specified in the Banking (Special Provisions) Act No. 17 of 2023.
Compensation can be claimed within a maximum period of 6 years from the date of license cancellation, i.e., on or before 02.07.2032, by submitting a duly filled application.
Further information regarding the application process will be communicated via newspapers and the Central Bank website in the future.
In the meantime, depositors are advised to keep their original deposit certificates and relevant identification documents (National Identity Card, etc.) ready.
Furthermore, the Central Bank states that all borrowers of Nation Lanka Finance PLC must pay their loan instalments within the due dates, strictly through bank accounts maintained in the name of Nation Lanka Finance PLC, and must maintain proper records of such payments.
The Central Bank further warned that failure to make loan repayments as scheduled may result in legal action.
Accordingly, the liquidation process of the company will be carried out under the Banking (Special Provisions) Act No. 17 of 2023.
The Central Bank states that despite various regulatory interventions, the company had continuously violated the Finance Business Act, leading the Central Bank to place the company under an administrative authority on July 4, 2025.
Following this, under the provisions of the Banking (Special Provisions) Act No. 17 of 2023, the Central Bank initiated resolution measures effective from 04.07.2025.
P.W.D.N.R. Rodrigo was appointed as the administrator to fully manage all assets, operations, and business activities of Nation Lanka Finance PLC from that date.
As the resolution authority, the Central Bank informs the public that it has continuously pursued strategic measures aimed at ensuring the stability and survival of the institution.
Extensive resolution measures included exploring various structural options and issuing an open invitation to viable investors and established, stable licensed commercial banks or finance companies.
However, despite these extensive and continuous efforts, a viable and long-term sustainable solution could not be reached.
Therefore, considering that the continued deterioration of the financial condition of Nation Lanka Finance PLC is detrimental to depositors and other stakeholders, the Central Bank has decided to cancel the licence of the company effective from 03.07.2026 and proceed with the liquidation process as per Part V of the Banking (Special Provisions) Act No. 17 of 2023.
Under the Sri Lanka Deposit Insurance Scheme, the Central Bank will take necessary steps to pay compensation to insured depositors of Nation Lanka Finance PLC, up to a maximum of Rs. 1,100,000 per depositor.
This will enable the full settlement of 99.1% of the company's total depositors, while the remaining 0.9% will also receive Rs. 1,100,000 as a portion of their deposits.
The compensation amount will be calculated by combining all qualified deposits and unpaid accrued interest for each depositor as of the license cancellation date.
Any remaining balance may be recovered during the liquidation process, subject to the priority of claims specified in the Banking (Special Provisions) Act No. 17 of 2023.
Compensation can be claimed within a maximum period of 6 years from the date of license cancellation, i.e., on or before 02.07.2032, by submitting a duly filled application.
Further information regarding the application process will be communicated via newspapers and the Central Bank website in the future.
In the meantime, depositors are advised to keep their original deposit certificates and relevant identification documents (National Identity Card, etc.) ready.
Furthermore, the Central Bank states that all borrowers of Nation Lanka Finance PLC must pay their loan instalments within the due dates, strictly through bank accounts maintained in the name of Nation Lanka Finance PLC, and must maintain proper records of such payments.
The Central Bank further warned that failure to make loan repayments as scheduled may result in legal action.
