Under the Master plan for Consolidation of Non-Bank Financial Institutions (the Master plan) being implemented by the Central Bank of Sri Lanka (CBSL), the following nine companies have already introduced fresh capital of Rs 12.56 billion to meet regulatory capital requirements: Sarvodaya Development, Dialog Finance, Asia Asset Finance, Lanka Credit and Business Finance, People’s Merchant Finance, Softlogic Finance, Merchant Bank of Sri Lanka & Finance, UB Finance Co and Richard Pieris Finance Ltd.
Twelve companies have submitted their acquisition and consolidation plans to CBSL and obtained preliminary approvals:
1. Assetline Leasing Co Ltd - acquisition of finance business licence of Kanrich Finance Ltd and settlement of its deposits.
2. LB Finance PLC - acquisition and subsequent amalgamation of Multi Finance PLC.
3. SMB Leasing PLC - acquisition of finance business licence of Swarnamahal Financial Services PLC and settlement of its deposits.
4. Commercial Leasing & Finance PLC - acquisition and subsequent amalgamation of Sinhaputhra Finance PLC.
5. HNB Finance PLC - acquisition and subsequent amalgamation of Prime Finance PLC.
6. LOLC Finance PLC- amalgamation of Commercial Leasing & Finance PLC.
As a result of the above developments, the Non-Bank Financial Institutions sector has witnessed a significant improvement in compliance with regulatory capital requirements and has recorded the lowest non-compliance levels during recent times.