magerata

Bringing Back The Finance Company PLC

In CENTRAL BANK OF SRI LANKA, Economy, magerata on September 30, 2010 at 8:38 am

I am sure everyone knew and a few wondered what is going to happen to The Finance Company PLC when a Ceylinco Group Companies went under. The Central Bank of Sri Lanka (CBSL) intervened and safeguarded the interests of  stakeholders, including the employees, customers, depositors and shareholders. It also helped to stabilize the financial situation of the country as well.

Now the CBSL thinks it is time to return the company to a Board of Directors representing the shareholders as the situation has normalized and the public confidence of the TFC is returning.

Following is the text of the news release and those who are interested could also download the PDF document.”Recapitalising The Finance Company PLC.PDF ”

Recapitalising The Finance Company PLC

In February 2009, the Central Bank of Sri Lanka (CBSL) intervened to stabilize The Finance Company PLC (TFC) in the face of difficulties encountered by the TFC as a result of the collapse of the several Ceylinco Group establishments. The interventions included the appointment of a Managing Agent and the issue of several specific directions to TFC. These measures contributed to stabilize TFC and to safeguard the interests of the company and its stakeholders, including the employees, customers, depositors and shareholders, and also to maintain financial system stability in the country. As a result of such interventions, the Company has now recovered from the initial shock, while public confidence has been restored.

In that background, the Monetary Board of the CBSL has decided that the time is now appropriate to recapitalize the company in order to facilitate the smooth operations of the Company in the future. It has also been decided that the Company must be managed by a capable Board of Directors representing the shareholders so that the Managing Agent could exit from the operations of TFC as soon as normalcy has been restored.

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