The Central Bank of Sri Lanka has issued freezing orders against six companies and their directors, preventing them from disposing of, transferring or otherwise dealing with their properties and other assets.

The orders were issued under Section 44 of the Finance Business Act No. 42 of 2011.

The Colombo High Court subsequently confirmed and extended the freezing orders.

Six companies

The orders cover:

  • Kasagala Green Plantation (Private) Limited
  • Ceylon Green Life Plantation (Private) Limited
  • Singhe Capital Investment Limited
  • Pro Shop Advertising Holdings (Private) Limited
  • Athens International Education Centre (Private) Limited
  • Eyon Lanka Investment & Film Production International Company (Private) Limited

Different regulatory status for the companies

The six companies should not all be described as having reached the same regulatory finding.

CBSL says investigations remain underway into Kasagala Green Plantation and Ceylon Green Life Plantation to determine whether they carried on finance business and/or accepted public deposits contrary to the Finance Business Act.

For the other four companies, CBSL says it has already determined that they had carried on finance business and/or accepted deposits in contravention of Section 2 of the Act.

Those four are:

  • Singhe Capital Investment Limited;
  • Pro Shop Advertising Holdings (Private) Limited;
  • Athens International Education Centre (Private) Limited; and
  • Eyon Lanka Investment & Film Production International Company (Private) Limited.

What an asset freeze means

The freezing orders restrict dealings with the relevant assets while the regulatory and legal processes continue.

An asset-freezing order is not itself a criminal conviction.

The distinction is especially important for the two plantation companies whose relevant Section 42 investigations remain ongoing.

Central Bank warning

CBSL has again advised members of the public to place deposits only with legally authorised institutions.

The Central Bank says only institutions licensed under the Banking Act or Finance Business Act, or otherwise specifically exempted under the applicable law, may legally accept deposits from the public.

CBSL says investigations are also continuing into other institutions and individuals following complaints concerning possible unauthorised finance businesses and deposit-taking.

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