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A Response From the Governor, CBSL to the News Item Published in LankaCNews

It has come to my attention about an article dated 17.02.2019 published in LankaCNews website, stating to be of a letter addressed to me by Hon. Wimal Weerawansa, MP, regarding transactions pertaining to ETI Finance Ltd. Although, I have still not received such a letter, I wish to clarify the below points with respect to the said webpage.

Sri Lanka Purchasing Managers’ Index - January 2019

Manufacturing activities expanded at a higher rate in January 2019 compared to December 2018. This was mainly driven by the expansion in employment and production, especially in manufacturing of textiles, wearing apparels, leather and related activities. A significant improvement in employment was experienced with the recruitment of new employees to fill the vacancies. Accordingly, the production also increased with the enhanced level of employment as well as the orders carried forward from the previous month.

Sale of Subsidiaries, Sub-Subsidiaries and Investment Properties of ETI Finance Ltd

This refers to an article published on 13.02.2019 in an English daily newspaper relating to the above matter.

The Central Bank of Sri Lanka (CBSL) noted that there were several incorrect and misleading information in the contents of the abovementioned article and wish to state CBSL’s observations as follows:

Regulatory Actions Taken by the Central Bank of Sri Lanka on The Finance Co PLC

The Finance Company PLC (TFC), a Finance Company licensed under the Finance  Business Act No. 42 of 2011 (FBA) was severely impacted by the failure of a number of financial institutions within the group in 2008. Since then the financial status of the company deteriorated gradually and currently with severe liquidity issues, which need to be addressed, immediately. Although, several efforts were made to identify prospective investors and to restructure the company, such efforts have not materialized yet. Thus the continuity of current status will be further detrimental to the interest of depositors and other stakeholders of the company.