Central Bank revokes Co-operative Leasing’s finance leasing licence

The Central Bank announced the cancellation of the registration of Co-operative Leasing Company Limited (CLCL) as a registered finance leasing establishment, citing repeated regulatory breaches and failure to comply with the country’s non-bank financial institution consolidation programme.

In a public notice issued this week, the Central Bank said CLCL had acted in contravention of the directions issued by the Supervision of Non-Bank Financial Institutions Department by repeatedly failing to comply with the reporting requirements, under Finance Leasing (Reporting Requirements) Direction No. 2 of 2010.

The regulator also said the company had failed to meet the requirements set out under the Central Bank’s Masterplan for Consolidation of Non-Bank Financial Institutions, despite being granted several extensions to achieve compliance.

According to the notice, CLCL had made no satisfactory progress in adhering to the consolidation roadmap and failed to develop a viable plan to ensure the sustainability of its business operations.

As a result, the Certificate of Registration issued to CLCL, under Finance Leasing Act No. 56 of 2000, has been cancelled, with effect from June 10, 2026, under Section 9(1)(f) of the act.

The Central Bank said the cancellation means CLCL no longer has the authority to undertake any new finance leasing business. However, the company may continue activities relating to finance leasing contracts entered into before the cancellation took effect.

The move comes as the regulators continue efforts to strengthen oversight and consolidate Sri Lanka’s non-bank financial sector, following the reforms aimed at improving financial stability and institutional resilience.