Central Bank increases maximum compensation under deposit insurance scheme

The Monetary Board of the Central Bank of Sri Lanka (CBSL) has decided to increase the maximum compensation payment under the Sri Lanka Deposit Insurance and Liquidity Support Scheme (SLDILSS) from Rs.600,000 to Rs.1.1 million.

This decision has been taken to provide further relief to the depositors of financial institutions regulated by CBSL in the event of a cancellation or suspension of the licenses of such institutions, the Central Bank said in a statement.

Accordingly, the depositors of six (6) finance companies, namely, Central Investments and Finance PLC (CIFL), The Standard Credit Finance Limited (TSCFL), TKS Finance Limited (TKSFL), The Finance Company PLC (TFC), ETI Finance Limited (ETIFL) and Swarnamahal Financial Services PLC (SFSP) whose licenses have been cancelled or suspended by the Monetary Board are eligible to receive the revised compensation amount.

The depositors of the aforementioned companies who have yet not obtained any compensation payment are also requested to apply for compensation under the revised maximum amount of Rs.1,100,000.

The Resolution and Enforcement Department of CBSL is currently taking necessary measures to commence the payment of additional compensation expeditiously.

CBSL said the payment mechanism and the date of commencement of payments under the increased compensation threshold will be notified by CBSL in due course.