CBSL Initiates Resolution Action on Nation Lanka Finance PLC

The Central Bank of Sri Lanka (CBSL) announced today its decision to initiate resolution action on Nation Lanka Finance PLC (NLFP), a Licensed Finance Company, effective immediately. This decisive step has been taken due to NLFP’s persistent violations of the Finance Business Act, No. 42 of 2011 (FBA), and various related Directions and Rules, coupled with its deteriorating financial health.

For an extended period, NLFP has been in breach of regulatory provisions, exhibiting critical deficiencies in capital levels, poor asset quality, continuous operational losses, and a significant failure to meet its obligations to depositors, including timely repayment of funds on demand or at maturity.

Despite numerous extensions and opportunities granted by the CBSL to NLFP to rectify these issues and comply with regulatory requirements, the company has shown no satisfactory progress in reviving its critical condition.

In light of the continued absence of improvements, and following a comprehensive assessment of NLFP’s financial and non-financial standing, the CBSL, in its capacity as the Resolution Authority, has moved to initiate resolution actions under the provisions of the Banking (Special Provisions) Act, No. 17 of 2023 (BSPA). This action is aimed at safeguarding the interests of depositors and creditors and maintaining the stability and integrity of the broader financial system.

As part of the resolution process under the BSPA, the CBSL has appointed Mr. P. W. D. N. R. Rodrigo as the Administrator for NLFP for a period of six months, effective July 4, 2025. Mr. Rodrigo will assume full control over all of NLFP’s assets, rights, business operations, and affairs, and will manage the company in its name and on its behalf.

The CBSL emphasized that this decision was made after providing NLFP with ample opportunity to address the identified problems. All stakeholders with financial obligations towards NLFP are advised to fulfill their contractual duties strictly through a bank account under the name of NLFP and to maintain thorough records of all payments. The CBSL also urged all stakeholders to cooperate fully with the Central Bank during this resolution process.

Further information regarding the resolution actions will be communicated to the public by the CBSL as and when appropriate.

For further inquiries:

* This number will be available from 07.07.2025 onwards.