The Central Bank of Sri Lanka will begin paying compensation to insured depositors of Nation Lanka Finance PLC through People’s Bank branches from August 1, the regulator said in a press notice reported by EconomyNext.
Payments will be capped at Rs. 1,100,000 from the aggregate deposits held by each depositor, under the Sri Lanka Deposit Insurance Scheme and the provisions of the Banking (Special Provisions) Act, No. 17 of 2023.
“CBSL will initiate compensation payments to the insured depositors of NLFP, subject to a maximum of Rs. 1,100,000 from the aggregate deposits of each depositor, under the SLDIS, in terms of the provisions of the BSPA and the Directions issued thereunder,” the Central Bank said.
Depositors will be able to receive money as over-the-counter cash, as a credit to an existing People’s Bank account, or through a new account opened at the bank. Insured depositors and legal beneficiaries have until 2 July 2032 to lodge claims.
The process differs by deposit size. Those who already hold People’s Bank accounts and whose aggregate Nation Lanka deposits total less than Rs. 5,000 may email completed claim forms, along with proof of deposit, identification used to open the account and their existing People’s Bank account details, to [email protected].
All other insured depositors must submit completed claim forms in person, together with original deposit certificates and identification documents, at one of the designated People’s Bank branches during specified dates and times. Joint depositors must file separate claim forms, and anyone unable to attend must act through a legally valid Power of Attorney holder.
Claim forms, instructions and a set of frequently asked questions are available on the Central Bank website.
The payouts follow the cancellation of Nation Lanka Finance’s licence to carry on finance business under the Finance Business Act, No. 42 of 2011, which took effect on 3 July 2026 under Section 66(2) of the Banking (Special Provisions) Act.
