May 23, 2020

The Finance liquidated : 362 staff terminated  Featured

The Finance Employees Union has accused that the government and the Central Bank are responsible for the closure of The Finance Company PLC, the first finance company in Sri Lanka, which is 80 years old.

The Chairman of the union Duminda Thilakaratne said that The Finance Company has operated under 2 managements and 5 Boards of Directors after it was acquired by the Central Bank in 2009 and in 2009 the Cabinet under then President Mahinda Rajapaksa had also given approval to appoint a Board of Directors.
He  further states that as the Central Bank's monetary board has suddenly decided to cancel the operating license of The Finance Company, depositors  are at the risk of losing Rs.26 billion.

Thilakaratne alleges that the company has incurred losses of more than Rs. 3 billion in the last three years and despite the advises given by the union the company failed to take any action. 

"Uncle Nimal" has taken deposits for 2019

In January 2019, under the instructions of the then Chief Executive Officer Nimal Mamaduwa, who launched  'One Billion, One Month' campaign, the company was able to secure deposits close to Rs. 1 billion.

Thilakaratnesays that the employees have deposited more than Rs. 380 million.

He further states that 70% of the depositors of the company are senior citizens and that the depositors had not been paid interest in the months of March and April.

Contact..

Meanwhile, the Central Bank states that the Sri Lanka Deposit Insurance and Liquidity Support Scheme of the CBSL will take necessary actions to pay compensation to the insured depositors under the applicable laws and regulations which would facilitate to settle 93% of the company’s total depositors in full (135,100 depositors out of 145,172 total depositors), while each of the remaining 7% depositors (10,072 depositors) will also receive Rs.600,000/-as a part of their deposit amount and the remaining balance may be able to recover in the process of liquidation subject to the priority of claims.
If further clarification is required, inquiries can be made using following methods.

 Institution  Purpose  Telephone Numbers  Email addresses
 Department of Supervision of Non-Bank Financial Institutions  Cancellation of the licence  011 2477573
 011 2477229
 011 2477504
 This email address is being protected from spambots. You need JavaScript enabled to view it.
 Resolution and Enforcement Department  Payment of compensation under Deposit Insurance  011 2398788  This email address is being protected from spambots. You need JavaScript enabled to view it.
 The Finance Company PLC Deposits    011 2557888
 011 2580210
 This email address is being protected from spambots. You need JavaScript enabled to view it.
 Pawning Advances obtained from the company    071 1359248  
 Other facilities obtained from the company    071 4086248
 071 1864361
 

The liquidation of The Finance Company has also been heavily criticized on social media. Here are some of the posts.

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