The Central Bank of Sri Lanka has revoked the finance business licence of Nation Lanka Finance PLC, effective July 3, 2026, and has decided to proceed with the company’s liquidation.
The liquidation will be carried out under the provisions of the Banking (Special Provisions) Act No. 17 of 2023.
According to the Central Bank, despite a series of regulatory interventions, Nation Lanka Finance PLC continued to violate the Finance Business Act. As a result, on July 4, 2025, the institution was placed under an administrator.
The Central Bank said it initiated a formal resolution process under the Banking (Special Provisions) Act on July 4, 2025, appointing P.W.D.N.R. Rodrigo as administrator with full authority to manage the company’s assets, operations, and business affairs.
As the resolution authority, the Central Bank said it had continuously pursued strategic measures aimed at restoring the company’s stability and viability. These efforts included evaluating various restructuring options, seeking potential investors, and issuing formal invitations to established licensed commercial banks and finance companies, as well as other interested parties.
However, despite these extensive efforts, the Central Bank said it was unable to secure a viable and sustainable long-term solution.
Given the company’s continued financial deterioration and the risks posed to depositors and other stakeholders, the Central Bank decided to revoke Nation Lanka Finance PLC’s licence with effect from July 3, 2026, and proceed with the winding up of the company as the final step in the resolution process.
Deposit Insurance Compensation
The Sri Lanka Deposit Insurance Scheme will compensate eligible insured depositors of Nation Lanka Finance PLC up to a maximum of Rs. 1.1 million per depositor, in accordance with the Banking (Special Provisions) Act.
The Central Bank said this compensation will fully reimburse approximately 99.1% of all depositors. The remaining 0.9% of depositors will also receive Rs. 1.1 million as a partial payment towards their deposits.
Compensation will be calculated by combining each depositor’s eligible deposits and any accrued but unpaid interest as of the date the licence was revoked.
Any remaining balance may be recovered during the liquidation process, subject to the priority of claims set out in the Act.
Eligible depositors may claim their insurance compensation by submitting a duly completed application within six years of the licence revocation, on or before July 2, 2032.
The Central Bank said further details on the application process will be announced through newspapers and on its official website. In the meantime, depositors are advised to keep their original deposit certificates and identification documents, including their National Identity Card and other relevant documents, ready for verification.
Instructions to Borrowers
The Central Bank also instructed all borrowers of Nation Lanka Finance PLC to continue repaying their loans on time only through bank accounts maintained in the name of Nation Lanka Finance PLC and to keep proper records of all payments.
It warned that legal action may be taken against borrowers who fail to make repayments in accordance with their loan agreements.
