Sri Lanka Central Bank freezes six firms: Here's why

The Central Bank of Sri Lanka (CBSL) has issued freezing orders against six companies and their directors, restricting them from transferring, disposing of or otherwise dealing with their properties and assets.

The orders were issued by the Director of the Department of Supervision of Non-Bank Financial Institutions under Section 44 of the Finance Business Act, No. 42 of 2011. The Colombo High Court subsequently confirmed and extended the freezing orders.

The companies named by the CBSL 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, and Eyon Lanka Investment & Film Production International Company (Private) Limited.

According to the CBSL, Kasagala Green Plantation and Ceylon Green Life Plantation are currently under investigation under Section 42 of the Finance Business Act. The central bank said it has determined that the other four companies accepted deposits or carried out finance business in contravention of Section 2 of the Act.

The CBSL has also urged members of the public to place their money only with institutions legally authorised to accept public deposits. The central bank said only institutions licensed under the Banking Act, No. 30 of 1988, or the Finance Business Act, as well as specifically exempted entities, are permitted to accept deposits from the public.

The regulator warned that placing money with unauthorised institutions could expose the public to the risk of losing their funds. The CBSL said it is conducting further investigations into several other individuals and institutions following complaints regarding suspected unauthorised financial activities.

The central bank has called on the public to report any individuals or institutions they believe may be illegally accepting deposits. The latest action comes as the CBSL continues its efforts to identify and take regulatory action against unauthorised financial businesses.