The Central Bank of Sri Lanka (CBSL) has taken measures to commence the second stage of the compensation payments to the depositors of The Finance Company PLC (TFC) with effect from the 2nd of July.

Accordingly, such payments will be taken place at 63 branches of the People’s Bank Island wide. In terms of this compensation mechanism Rs. 600,000/- is paid per depositor basis, the CBSL said in a statement issued on Friday (27).

Under this second stage compensation to all the depositors confirmed by the TFC will be commenced from July 02.

Upon cancellation of the finance business license of TFC by the Monetary Board of the CBSL, compensation payments to the depositors/legal beneficiaries of depositors of the TFC from the Sri Lanka Deposit Insurance and Liquidity Support Scheme (SLDILSS) were commenced on June 07.

Accordingly, under the first stage of the payment mechanism, compensation payments to individual depositors who maintain only one account i.e. nearly 105,000 depositors in total were implemented. Under the second stage of the mechanism, approximately another 38,000 depositors will be eligible to receive compensation.

The CBSL has taken all required measures to ensure that the compensation procedure is implemented in an efficient and effective manner. The People’s Bank has been appointed as the Agent of the CBSL with a view to execute compensation program expeditiously.

The CBSL requests the depositors of TFC to extend their maximum cooperation towards this compensation program by submitting originals of deposit certificates, identification details and other required documents.

In respect of joint accounts, minor accounts, deposits converted into shares and deposits maintained in the names of corporates and societies, deceased depositors and depositors living abroad, the instances where the loss of original deposit certificate/pass book, the absence of required identification documents etc., it will be required to submit affidavits, special forms and confirmations obtained from TFC as specified by the Peoples Bank. The depositors of TFC are kindly requested to abide by such instructions to make the compensation programme a success.

Further details pertaining to the compensation to the depositors of TFC can be obtained from the following telephone numbers.

People’s Bank: 0112 481594, 0112 481320, 0112 481612, 0112 481703

Central Bank of Sri Lanka: 0112 398788, 0112 477261