The Central Bank Monetary Board has decided to take a number of regulatory actions against The Finance PLC due to the company's weak performance. 

In a statement, the Central Bank said the new measures will come into effect from today (15).

The Central Bank said the regulatory measures have been put in place with a view to safeguard the interests of the depositors and other stakeholders of the company.

It added. "Proposed regulatory measures include suspension of accepting new deposits, restrictions on withdrawal of deposits and restricting disbursement of loans and advances to facilitate the restructuring process of TFC.

In order to facilitate the restructuring process, a panel of experts in banking and finance has been appointed by the CBSL. The company shall continue to negotiate and finalize the proposals of prospective investors and the CBSL will facilitate TFC to proceed with suitable investors as per the applicable laws and regulations. At the same time, all borrowers of the company are strictly advised to pay their dues. It is further expected that these measures will greatly assist potential investors of TFC and to ensure the safety and soundness of the financial system. 

The depositors of TFC are further informed that the CBSL is taking additional measures and closely monitoring the operations of the company to protect the rights of the depositors. Interest due for deposits will continually be paid to the depositors as per the CBSL directions. With the restructuring process, it is expected to improve the cash flows and facilitate the prospective investors and revival of the company. Attention is also drawn to the fact that the deposit insurance and liquidity support scheme will also safeguard the interest of all depositors, to a maximum of Rs.600,000/- per depositor, which will cover 93 percent of the depositors in full. Therefore, the depositors are kindly requested to cooperate with the CBSL, in this regard."