Kanrich Finance Limited (KFL) has been ordered by the Central Bank of Sri Lanka (CBSL) to settle its public liabilities in full by the end of February 2023.
The monetary board of the Central Bank has issued the directive as a measure to strengthen the non-bank financial institutions sector under its ‘masterplan for consolidation’, the CBSL said in a statement.
It decided to direct KFL to settle its public liabilities in full within 26 December 2022 and 28 February 2023, due to continuous capital deficiencies faced by KFL.
The directive has been issued in the best interest of depositors and promissory note holders of KFL, subsequent to securing measures to have adequate funds available for KFL to fully settle its public liabilities and further directing KFL to exit from the finance business after such settlement.
Accordingly, KFL will take necessary action to settle the entirety of public liabilities with interest accrued up to 26 December 2022 at agreed upon interest rates.
The CBSL requests all depositors and promissory note holders of KFL to avail this settlement plan and claim their funds before 28 February 2023, the statement added.