Colombo Business

Sri Lanka's central bank liquidity facility for finance companies

Sri Lanka's central bank said it will provide liquidity to troubled finance company, to boost confidence on conditions including cutting costs, shareholders agreeing to bring capital and converting deposits to shares.

The liquidity facility would come via the Sri Lanka Deposit Insurance Fund, after assessing each licensed finance company.
The Central Bank said it may ask shareholders to infuse capital, or invite a strategic investor and in certain instances, direct the depositors to convert a part of their deposits into ordinary shares.