Kanrich Finance shoots down concerns

Kanrich Finance today shot down concerns over the stability of the company which arose after the Central Bank of Sri Lanka said it had directed the company to settle its public liabilities in full.

Issuing a clarification, Kanrich Finance said that as part of the Consolidation Master Plan of the Central Bank of Sri Lanka, it is required to either merge with another finance company or operate as an approved lending institution.

Irrespective of the decision the shareholders will take, Kanrich Finance says the management decided to pay of all its  fixed and promissory notice depositors with up to date interest from its internal funds.

Kanrich Finance says the move will now allow the depositors to either invest in the merged entity or in another institution.

The company also said that it had recorded a profit before tax of Rs. 183 million for the last financial year and will record a core capital of Rs. 2 billion in this financial year.

Kanrich Finance also noted that its capital adequacy ratio is 29 %, which is well above the regulatory requirement.

Issuing a statement yesterday, the Central Bank of Sri Lanka said it had 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 said 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. (Colombo Gazette)