The Central Bank will take legal action against 16 financial institutions that were operating without the authorisation of the monetary board, Parliament was informed yesterday.
Three other unregistered financial institutions -- Janatha Pragathi Investments Company (Pvt) Ltd, Varuna Investments Ltd., and Deshiya Sampath Sanwardena Ha Ayojana Sangamaya have been asked to return the funds deposited by the customers.
This was revealed in parliament in response to a question by an opposition member. The 16 financial institutions facing legal action are Kalutota Finance; Jana Shri Financial Corporation Company Ltd; Wasana Finance and Development (Pvt) Ltd; Rural Development Investment Ltd; Janahanda Investment and Financial Services Ltd; Lakwin Finance Company Ltd; Resources Enhancement and National Development Co. Ltd; Emerald Investment Ltd; Rural Development Finance Company Ltd; Golden Financial Services Ltd; Purna Investments and Financial Services Ltd; Okanda Finance Ltd; Piyadasa Ratnayake, D.K. Udayasiri, Narangoda Liyanage Don Minol, Hasantha Narangoda who is the owner of the business named Shriyavi Homes, Lands and Investments and Sakvithi House Constructions (Pvt) Ltd.
Of the 88 financial institutions registered with the Central Bank, 23 are licensed commercial banks, nine specialised banks, 38 finance companies and 18 finance leasing establishments. (Kelum Bandara and Yohan Perera)