Kanrich Finance directed to settle public liabilities in full

The Central Bank of Sri Lanka has directed Kanrich Finance Limited (KFL) to settle its public liabilities in full within the period from 26.12.2022 to 28.02.2023 due to continuous capital deficiencies faced by KFL.

The Monetary Board of the Central Bank of Sri Lanka, as a measure to strengthen the Non-Bank Financial Institutions Sector under the ‘Masterplan for Consolidation’ decided to direct Kanrich Finance Limited (KFL) to settle its public liabilities in full within the period from 26.12.2022 to 28.02.2023 in terms of Section 25(1)(m) of the Finance Business Act, No. 42 of 2011 (FBA), due to continuous capital deficiencies faced by KFL, the Central Bank said in a statement.

The direction was 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 actions to settle the entirety of public liabilities with interest accrued up to 26.12.2022 at agreed upon interest rates.

All depositors and promissory note holders of KFL have been requested to avail this settlement plan and claim their funds prior to 28.02.2023. (Colombo Gazette)