Sri Lanka’s central bank has issued a warning regarding the unauthorized use of the word ‘Finance’ in company names, highlighting a violation of the Finance Business Act, No. 42 of 2011.
According to the statement, Section 10(2) of the Act prohibits any entity, other than a licensed finance company or an institution specified in Section 10(6), from using terms like ‘finance,’ ‘financing,’ or ‘financial’—either alone or in combination with other words—without prior approval from the Central Bank of Sri Lanka (CBSL).
Violators of this provision, as outlined in Section 56(4) of the Act, may be subject to legal action. The CBSL has urged the public to comply with the regulation to avoid penalties.
For further inquiries, individuals can contact the Department of Supervision on Non-Bank Financial Institutions via telephone at 0112 477 504 or email at [email protected].