Kanrich Finance Limited (KFL) says its management has decided to pay off all the fixed and promissory notes depositors with up-to-date interest from its internal funds which is already allocated for the process.
Issuing a statement, KFL said the payoff process enables all the depositors to decide independently to invest either in the merged entity or in any other institution at their discretion.
KFL further said that the move comes as it is either required to merge with another financial company or operate as an approved lending institution as part of the consolidation master plan of the Central Bank of Sri Lanka (CBSL).
The clarification comes after the Central Bank of Sri Lanka said it has decided to direct KFL to settle its public liabilities in full within the period from 26th December 2022 to 28th February 2023.
The CBSL said that the decision was taken by its Monetary Board as a measure to strengthen the Non-Bank Financial Institutions Sector under the ‘Masterplan for Consolidation’ in terms of Section 25(1)(m) of the Finance Business Act, No. 42 of 2011 (FBA), due to continuous capital deficiencies faced by KFL.
The aforesaid direction was issued in the best interest of depositors and promissory note holders of KFL, subsequent to securing measures to have adequate funds available for KFL to fully settle its public liabilities and further directing KFL to exit from the finance business after such settlement.
The CSBL said accordingly, KFL will take necessary actions to settle the entirety of public liabilities with interest accrued up to 26th December 2022 at agreed-upon interest rates.
It added that all depositors and promissory note holders of KFL are requested to avail of this settlement plan and claim their funds prior to 28th February 2023.
