July, 3, 2026
The Central Bank of Sri Lanka (CBSL) has announced that the vast majority of depositors at Nation Lanka Finance PLC (NLFP) will be fully compensated following the company's license cancellation.
According to the CBSL, the Sri Lanka Deposit Insurance Scheme (SLDIS) will provide compensation up to a maximum of Rs. 1,100,000 per depositor. This measure ensures that approximately 99.1% of the company's total depositors will receive a full settlement of their funds. The remaining 0.9% of depositors, whose balances exceed the insurance cap, will receive the maximum Rs. 1,100,000 as a partial settlement and may recover any remaining balance during the company's liquidation process.
The decision to wind up the company follows a long period of regulatory struggle. The CBSL originally initiated resolution actions against NLFP on July 4, 2025, due to continuous violations of the Finance Business Act. Despite the appointment of an administrator and exhaustive efforts to stabilize the firm, including seeking potential acquirers and new investors, a viable solution could not be reached.
With the company's financial position continuing to deteriorate, the CBSL officially cancelled NLFP's license on July 3, 2026, to protect the interests of depositors and stakeholders.
Depositors are eligible to receive compensation for their total deposits and any unpaid accrued interest as of the date of the license cancellation. To claim these funds, depositors must submit a formal claim within six years, with the final deadline set for July 2, 2032.
The CBSL has advised depositors to prepare the following documents in anticipation of the payment process:
Further details regarding the specific mode of payment and the commencement date for compensation will be published in newspapers and on the official CBSL website in due course. In the meantime, all debtors of NLFP are urged to continue their repayments through official bank accounts to avoid legal action.
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