The Monetary Board of the Central Bank of Sri Lanka has decided to suspend business of Swarnamahal Financial Services PLC (SFSP), in terms of Section 31(1) of the Finance Business Act, No. 42 of 2011 (FBA) with effect from 5:00 p.m. on 12th April 2021. Having considered the continuously deteriorating financial condition and non-availability of a viable revival plan, the Monetary Board decided to suspend the business of SFSP and its parent Company ETI Finance Limited (ETIF) in terms of Section 31(1) of the FBA with effect from 13 July 2020 and the period of suspension of business activities was in effect until 12 January 2021. During the suspended period the company failed to bring in an acceptable revival plan through a capital infusion even after expiry of almost six (06) months from the date of suspension of the business activities and the financial position of SFSP continued to deteriorate further. During the said suspension period, a significant amount of dues to SFSP were collected mainly through gold loan recoveries and number of depositors requested their remaining deposits to be repaid with such recoveries. Accordingly, the Monetary Board, in the public interest and in the interest of depositors, ordered SFSP to resume business notionally for a limited period of three (03) months from 13 January 2021 under the supervision of the Panel of Management appointed by the Monetary Board, subject to specified strict conditions, only for the purpose of repayment up to 50% (50%) of remaining deposits. A total of LKR 665.6 million has been paid to 94% (94%) of the remaining depositors under the repayment plan by the end of March 2021and the balance payments are also being processed by SFSP. In the meantime, the Monetary Board decided to increase the maximum compensation payment under the the Sri Lanka Deposit Insurance and Liquidity Support Scheme (SLDILSS) from LKR 600,000 to LKR 1,100,000 by LKR 500,000. This decision has been taken to provide further relief to the depositors of financial institutions regulated by the Central Bank of Sri Lanka in the event of a cancellation or suspension of the licences of such institutions.