Central Bank assures foreign investors will get full control of troubled CIFL

The Monetary Board of Central Bank has assured that investors would get 100% control of the troubled Central Investment and Finance Company (CIFL) in the event the proposed investment is materialised satisfactorily.

In a filing to the Colombo Stock Exchange, the company said as announced in previous disclosure, the investors expressed their requirement of acquiring 100% ownership of the company and the CIFL had sought advice from the Central Bank.

“We sought advice from the Central Bank by our letter dated 20th September 2016,” CIFL said.

The Central Bank responding to the company’s request has indicated that the Monetary Board is empowered in terms of the Finance Business Act to ensure that investors would get 100% control in the event the proposed investment is materialised satisfactorily.

They have further stated that such intervention would be subject to the other circumstances of the mechanism of proposed investment.

CIFL earlier said they are awaiting a response from the prospective German investor, Vandell Financial Services indicating their future plan of action in the form of a memorandum of understanding to rescue the troubled company.

A high level delegation of the prospective investor has with the President and Finance Minister in addition to other fact finding missions to regulatory authorities and the company has submitted all the clarifications to the Investor delegation and is awaiting their response.