The Central Bank of Sri Lanka (CBSL) has cancelled the finance business licence of Nation Lanka Finance PLC with effect from July 3, 2026, and will proceed with winding up the company under the Banking (Special Provisions) Act, No. 17 of 2023.
The Central Bank said the company was placed under administration on July 4, 2025, following repeated violations of the Finance Business Act despite several regulatory interventions.
Over the past year, CBSL said it explored multiple options to revive the company, including restructuring initiatives, potential acquisitions by licensed banks and finance companies, and efforts to attract new investors. However, none of these measures resulted in a viable resolution.
According to the Central Bank, the company's continued financial deterioration made it necessary to revoke its licence and commence liquidation in order to safeguard the interests of depositors and other stakeholders.
Under the Sri Lanka Deposit Insurance Scheme (SLDIS), insured depositors will be entitled to compensation of up to Rs. 1.1 million per depositor. CBSL said this would fully compensate approximately 99.1% of Nation Lanka Finance PLC's depositors. The remaining 0.9% will receive Rs. 1.1 million as part payment, with any outstanding balances to be recovered through the liquidation process, subject to the priority of claims.
The Central Bank said details of the compensation process, including payment dates and procedures, will be announced in due course.
Meanwhile, CBSL advised all borrowers of Nation Lanka Finance PLC to continue repaying their outstanding loans through the bank accounts maintained in the company's name.
