Finance and Leasing Companies
The Department of Supervision of Non-Bank Financial Institutions (DSNBFI) is entrusted with the mandate to regulate and supervise, Licensed Finance Companies (LFCs) and Specialised Leasing Companies (SLCs) under the provisions of the Finance Business Act, No.42 of 2011 and the Finance Leasing Act, No.56 of 2000. The Supervision of LFCs and SLCs is conducted through the statutory examinations (on-site supervision) and continuous surveillance (off-site supervision) granting regulatory approvals, issuance of directions and prudential requirements, investigating into companies carrying on finance business and accepting deposits without authority and attending to public complaints relating to policy matters, unauthorized deposit taking/finance business and failed finance companies.
Licensed Finance Companies (LFCs)
Companies that are licensed under the Finance Business Act, No.42 of 2011 (FBA) by the Monetary Board of Central Bank of Sri Lanka and authorized to carry on finance business.
In the event of any non-compliance with the prudential requirements, the FBA empowers the Monetary Board and the Director, Department of Supervision of Non-Bank Financial Institutions to take necessary corrective actions such as imposing penalties, business restrictions, repayment of deposits, license cancellation and further investigation of books etc.
List of Sri Lanka's Licensed Finance Companies
Specialised Leasing Companies (SLCs)
Companies that are registered to engage in finance leasing business under the Finance Leasing Act, No 56 of 2000 (FLA).
There are four categories of institutions that are eligible to register as Registered Finance Leasing Establishments (RFLEs). They are Licensed Commercial Banks, Licensed Specialised Banks, LFCs and SLCs. The regulation and supervision function of SLCs registered under the FLA is carried out by the DSNBFI of the Central Bank.
SLCs are not permitted to accept money from the public as deposits. However, they may borrow money by issuing debt instruments such as promissory notes, commercial papers and debentures etc., with the prior approval of the Director of DSNBFI.