Nation Lanka Finance PLC administrator tenure has been formally extended by the Central Bank of Sri Lanka to ensure continuity in the company’s ongoing resolution process. The decision reflects regulatory efforts to protect depositors, creditors, and overall financial system stability.
Nation Lanka Finance PLC administrator term extended to ensure stability
The Central Bank of Sri Lanka (CBSL) has extended the term of the Administrator appointed to Nation Lanka Finance PLC (NLFP) under the Banking (Special Provisions) Act, No. 17 of 2023, reinforcing its commitment to an orderly and uninterrupted resolution process. The extension applies to Mr. P. W. D. N. R. Rodrigo, who will continue to serve as Administrator for a further six months from 4 January 2026 to 3 July 2026.
Mr. Rodrigo was initially appointed through an Order published in Gazette Extraordinary No. 2443/57 dated 4 July 2025. His continued appointment signals that critical elements of the resolution framework require additional time to reach completion. According to CBSL, the extension is essential to advance key procedural and structural steps, including the implementation of an appropriate resolution tool permitted under the Banking (Special Provisions) Act.
During the extended tenure, the Administrator will retain full authority over the assets, operations, and affairs of Nation Lanka Finance PLC. This authority enables the Administrator to manage the institution on its behalf while ensuring that actions taken remain aligned with statutory obligations and regulatory oversight. The continuation of centralized control is considered vital to maintaining operational discipline and safeguarding stakeholder interests during the resolution phase.
CBSL has emphasized that the Administrator is required to submit all necessary reports, data, and information in accordance with legal and regulatory requirements. These reporting obligations are designed to ensure transparency, accountability, and effective supervision throughout the process. Regular engagement between the Administrator and the Central Bank allows regulators to monitor progress and assess whether the resolution strategy is being executed in a timely and prudent manner.
The extension also reflects CBSL’s broader mandate as the Resolution Authority to preserve confidence in the financial system. By allowing additional time for the resolution of NLFP, the regulator aims to minimize systemic risk, prevent disorderly outcomes, and protect depositors and creditors from potential adverse impacts. Such measures are particularly significant in a financial environment where institutional stability plays a critical role in sustaining economic confidence.
Stakeholders with financial obligations to Nation Lanka Finance PLC have been reminded to continue fulfilling their contractual commitments without delay. CBSL has specifically advised that all payments related to the company should be made only through bank accounts maintained in the name of NLFP, in accordance with existing agreements. Stakeholders are also encouraged to retain proper records of all transactions, ensuring clarity and traceability during the ongoing administration period.
In addition, CBSL has called on all relevant parties to cooperate fully with regulatory authorities throughout the extended administration. This cooperation is viewed as essential to achieving an effective and credible resolution outcome. Timely compliance by borrowers, counterparties, and other stakeholders can help facilitate progress while reducing operational and legal complications.
The extension of the Nation Lanka Finance PLC administrator underscores the regulator’s preference for structured resolution over abrupt intervention. By allowing the Administrator sufficient time to implement legally sanctioned tools, CBSL aims to balance institutional recovery efforts with the protection of the broader financial ecosystem. The decision reinforces the principle that resolution processes, particularly in complex financial entities, require measured execution rather than accelerated timelines that could compromise outcomes.
As the extended period progresses, market participants will closely observe developments related to NLFP’s resolution. The continuation of administrative oversight, coupled with regulatory supervision, is expected to contribute to an orderly process that aligns with statutory objectives and financial system stability.