The Finance Company continues second phase of restructuring
Wednesday, 17 December 2014 00:47
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The Central Bank said yesterday the second phase of restructuring of The Finance Company Plc was progressing to make it profitable.
In a statement, the Central Bank said in keeping with the direction issued by the Monetary Board at its meeting held on 26 May, the bank has continued the implementation of the second phase of restructuring of The Finance Company PLC (TFC). This was in order to further stabilise the company and move it to a profitable level, in terms of the provisions of the Finance Business Act No. 42 of 2011.
Already, a new Board of Directors has been appointed and a new business model has been implemented by the TFC under which the company is expected to broad base and rationalise its business activities.
At the same time, the Monetary Board has approved a long-term concessionary loan facility from the Sri Lanka Deposit Insurance and Liquidity Support Fund in order to support the liquidity requirements of TFC as per the envisaged new business model.
In that context, an agreement pertaining to the liquidity support facility was signed on 15 December by Chairman Dr. S.H.A.M. Abeyratne and Managing Director Aruna Lekamge of TFC, with the Central Bank of Sri Lanka. As a result, TFC is now expected to further consolidate its progress towards reaching a stable, sustainable and profitable level that would enable the company to attract new equity capital through a suitable future share issue.
The current Board of Directors of TFC are as follows: Dr. S.H.A.M. Abeyratne (Chairman), Sujeewa Rajapakse (Deputy Chairman/Non-Executive Independent Director), Aruna P. Lekamge (Managing Director), T.B. Ekanayake (Executive Director), R.D. Abeywickrama (Executive Director), Dr. Rohantha Athukorala (Non-Executive Independent Director) and Himalee Kularathna (Non-Executive Independent Director).
