The Monetary Board of the Central Bank of Sri Lanka (CBSL) (Monetary Board) has decided to suspend business activities of Swarnamahal Financial Services PLC (SFSP) with effect from 5.00 p.m. on April 12, 2021.
While issuing a statement, the CBSL said having considered the continual deteriorating financial conditions 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 July 13, 2020 and the period of suspension of business activities was in effect until January 12, 2021.
During the suspended period, the Company had 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, the statement said.
