Trading of shares from Central Investments & Finance Limited (CIFL) was halted at the Colombo Stock Exchange (CSE) this morning (19 October). According to the CSE, this step had been taken pending a clarification from the company.
According to a statement from the Central Bank of Sri Lanka, while a final decision has been announced on four financial institutions including CIFL, it has further added that the Monetary Board has approved a decisive process to refund the investments of the depositors at CIFL and two other financial institutions and the legal investors connected with government security bonds issues by Entrust Securities PLC.
Central Bank of Sri Lanka points out that in the event of the necessary cooperation from relevant quarters is not forthcoming, according to the prevailing law it has not alternative but to grant permission, though reluctantly for the liquidation of the business activities of these companies.
Meanwhile, CIFL shares dropped to Rs. 120 from the earlier price of Rs. 150 each.