The Central Bank of Sri Lanka (CBSL) will commence compensation payments to insured depositors of Nation Lanka Finance PLC from 1 August through selected branches of People’s Bank, following the cancellation of the finance company’s licence earlier this month.
The payouts will be made under the Sri Lanka Deposit Insurance Scheme (SLDIS), with eligible depositors entitled to compensation of up to Rs. 1.1 million based on the aggregate value of their insured deposits.
The CBSL said the compensation will be paid through over-the-counter cash payments by crediting existing People’s Bank accounts or through newly opened accounts at the State-owned bank.
The compensation process follows the cancellation of Nation Lanka Finance’s licence to conduct finance business with effect from 3 July under Section 66(2) of the Banking (Special Provisions) Act, No. 17 of 2023.
The CBSL said insured depositors and legal beneficiaries of insured depositors are permitted to submit compensation claims until 2 July 2032 in accordance with the provisions of the Banking (Special Provisions) Act.
Depositors who already maintain People’s Bank accounts and whose aggregate deposits with Nation Lanka Finance are below Rs. 5,000 are required to submit completed claim forms and supporting documents electronically to People’s Bank.
All other insured depositors are required to submit completed claim forms together with the prescribed documentation, including original deposit certificates and identification documents, at one of the designated People’s Bank branches handling the compensation process.
The CBSL said joint account holders must submit separate claim forms, while depositors unable to appear in person may authorise legally appointed Power of Attorney holders to lodge claims on their behalf.
Claim forms, instructions, and frequently asked questions relating to the compensation process are available on the CBSL’s website, while printed copies can also be obtained from designated People’s Bank branches.
The CBSL said its Deposit Insurance and Resolution Department would provide further assistance to depositors requiring additional information on the claims process.