CBSL suspends Swarnamahal Finance
The Monetary Board of the Central Bank of Sri Lanka (CBSL) has decided to suspend business of Swarnamahal Financial Services PLC (SFSP), in terms of Section 31(1) of the Finance Business Act, No. 42 of 2011 (FBA) with effect from yesterday (12 April).
Having considered the continuously deteriorating financial condition and non-availability of a viable revival plan, the Monetary Board decided to suspend the business of SFSP and its parent Company ETI Finance Limited (ETIF) in terms of Section 31(1) of the FBA with effect from 13 July 2020 and the period of suspension of business activities was in effect until 12 January 2021. During the suspended period the Company failed to bring in an acceptable revival plan through a capital infusion even after expiry of almost six (06) months from the date of suspension of the business activities and the financial position of SFSP continued to deteriorate further.