The Central Bank of Sri Lanka (CBSL) has imposed freezing orders on six companies and their directors under Section 44 of the Finance Business Act, No. 42 of 2011, preventing them from disposing of, transferring or otherwise dealing with their properties and other assets.

The orders were issued by the Director of the Department of Supervision of Non-Bank Financial Institutions (DSNBFI) of the CBSL. The High Court of Colombo subsequently confirmed and extended the freezing orders against the companies concerned, according to a statement issued by the CBSL.

The CBSL has also urged the general public to deposit their money only with institutions legally authorized to accept deposits, warning that dealing with unauthorized institutions could result in the loss of their funds.

According to the CBSL, only institutions licensed under the Banking Act, No. 30 of 1988, or the Finance Business Act, No. 42 of 2011, or institutions specifically exempted under those laws, are permitted to accept deposits from the public.

The Central Bank said it is also conducting investigations into several institutions and individuals following complaints to determine whether they have been carrying on finance business or accepting deposits from the public in violation of the Finance Business Act.

The CBSL has called on the public to report any institutions or individuals suspected of accepting deposits without the required authorization.