The Central Bank of Sri Lanka (CBSL) has frozen the assets of six companies and their directors over concerns related to unauthorised finance business and deposit-taking.
The orders prevent the companies and directors from disposing of, transferring or otherwise dealing with their properties and other assets.
CBSL issued the orders under Section 44 of the Finance Business Act, No. 42 of 2011.
The High Court of Colombo has since confirmed and extended the freezing orders against the companies concerned.
Why Did CBSL Freeze Their Assets?
CBSL is investigating two of the companies to determine whether they carried on finance business or accepted deposits from the public without the required authorisation.
CBSL has also determined that four other companies carried on finance business and/or accepted deposits in violation of the Finance Business Act.
The freezing orders prevent the companies and their directors from dealing with their assets while the regulatory and legal processes continue.
Who Can Legally Accept Deposits?
CBSL has reminded the public to deposit money only with institutions that are legally authorised to accept public deposits.
Under the relevant laws, institutions licensed under the Banking Act, No. 30 of 1988, or the Finance Business Act, No. 42 of 2011, can accept deposits from the public.
Institutions specifically exempted under those laws may also accept deposits.
Therefore, CBSL has warned that dealing with unauthorised institutions could result in the loss of funds.
CBSL Continues Investigations
The Central Bank said it is investigating several other institutions and individuals following complaints received by the regulator.
The investigations seek to determine whether these parties have been carrying on finance business or accepting deposits from the public without the required legal authority.
CBSL has also asked the public to report institutions or individuals suspected of accepting deposits without the required authorisation.
The latest action highlights the need for depositors to check whether an institution has the legal authority to accept public deposits before placing their money with it.
Central Bank of Sri Lanka (CBSL) Economic & Regulation
Last modified: September 22, 2026
