Central Bank says insured CIFL deposits will be paid a maximum of Rs. 600.000/-per depositor

Updated (News 1^st)  - The Central Bank issuing a clarification said all insured deposits of Central Investment and Finance (CIFL) PLC will be paid up to a maximum of Rs. 600,000/- per depostor as per the regulations of the Sri Lanka Deposit Insurance and Liquidity Support Scheme. The clarification on compensation follows a decision by the Monetary Board of the Central Bank to cancel the license of the troubled Central Investment and Finance (CIFL) PLC and compensate insured depositors under applicable laws and regulations. Central Investments and Finance PLC, licensed under the Finance Business Act No. 42 of 2011 has been facing severe financial problems over the last four years due to mismanagement and various fraudulent activities taken place in the company. “Central Bank of Sri Lanka wishes to emphasize that legal actions will be taken against the responsible parties for the mismanagement and fraudulent activities of the company,” the statement said. The Central Bank said the continuity of current status will further be detrimental to the interest of depositors and other stake holders of the company and the Monetary Board decided to cancel the license issued to CIFL under the Finance Business Act No. 42 of 2011 with effect from 05 March 2018. Accordingly, CIFL will not be permitted to engage in finance business from the date of the cancellation of its license. “All efforts made to revive the company through different strategies have been failed,” the bank said in a statement. According to the Central Bank, the Sri Lanka Deposit Insurance and Liquidity Support Scheme will take necessary actions to pay compensation to the insured depositors. “Depositors of the company have failed to withdraw their money over the last four years,” the statement said. “Depositors may be able to recover some of their dues in the process of liquidation subject to the priority of claims,” the statement further said.