The Central Bank of Sri Lanka (CBSL) announced the recommencement of compensation payments for depositors of Swarnamahal Financial Services PLC (SFSP) under the Sri Lanka Deposit Insurance and Liquidity Support Scheme (SLDILSS).

According to a public notice issued by the CBSL, eligible depositors and relevant legal beneficiaries of SFSP can begin receiving compensation payments starting from today, 9 June. 

The compensation payments are expected to continue until 12 July, next year (2024).

However, if a liquidator is appointed by a competent court for the liquidation of SFSP before 12 July 2024, the compensation payment under SLDILSS will be immediately discontinued.

The eligible depositors and relevant legal beneficiaries who have not yet received compensation, up to a maximum of Rs. 1,100,000 can now claim their compensation from any branch of People's Bank by providing the necessary documents.

It is worth noting that the suspension of SFSP's business, along with its parent company ETI Finance Ltd., was imposed by the Monetary Board of the CBSL due to the deteriorating financial condition and the absence of a viable revival plan.

 In December 2022, CBSL further revoked the business license and registration of the company.