It appears that Bimputh Finance PLC (BFP) has had its license canceled by the Central Bank of Sri Lanka (CBSL) under the Finance Business Act (FBA). The license cancellation is effective from September 1, 2023. As a result, Bimputh Finance is no longer permitted to engage in finance business.
The CBSL has stated that BFP had continuously violated or contravened provisions of the FBA, as well as various general Directions and Rules that were issued to maintain financial system stability. Additionally, specific directions were given to BFP to address its critical financial position, but the company did not make satisfactory progress in resolving its issues. This led to a deterioration in BFP’s financial condition, including deficient capital levels, poor asset quality, and ongoing losses.
Despite multiple extensions granted by the Monetary Board of the CBSL to comply with the regulatory requirements, BFP was unable to make sufficient progress in improving its financial situation. As a result, the CBSL has decided to revoke BFP’s license to carry on finance business.
The CBSL also mentioned that BFP had managed to repay a significant portion of its deposit liabilities in 2022. The Sri Lanka Deposit Insurance and Liquidity Support Scheme (SLDILSS) will take actions to compensate unclaimed depositors of BFP, up to a maximum of Rs. 1,100,000/- per depositor, in accordance with SLDILSS regulations. Eligible depositors of BFP can recover their deposits in full through SLDILSS by submitting valid claims within two years from the date of license cancellation or before the appointment of a liquidator by a competent court, whichever occurs earlier, as per SLDILSS regulations.
Furthermore, debtors of BFP are advised to repay their dues to BFP only through a bank account under the name of BFP and to maintain records for all such payments.
For further clarifications or inquiries, you can contact the Department of Supervision of Non-Bank Financial Institutions using the provided contact information:
Telephone: 0112 477229, 0112 477504
Fax: 0112 477 738
Please note that all inquiries should be made in the English language.