The Central Bank cancels the financial leasing license of Cooperative Leasing Company.

The Central Bank of Sri Lanka has taken steps to revoke the financial leasing license of Co-operative Leasing Company (CLCL) with immediate effect. The Central Bank states that this decision was made due to continuous violations of regulatory conditions and the failure to properly follow the country's non-bank financial institution consolidation program.

A public statement issued by the Central Bank indicates that Co-operative Leasing Company has failed to comply with a series of directives issued by the Department of Supervision of Non-Bank Financial Institutions. Specifically, the institution has repeatedly failed to meet the reporting requirements stipulated under Financial Leasing Order No. 2 of 2010. Despite being officially granted several extensions to comply with the master plan for consolidation introduced with the aim of strengthening the financial sector, the company has not succeeded in fulfilling the relevant legal framework.

The company has failed to show any successful progress within this consolidation roadmap and has also failed to present a practical program that ensures the future sustainability of its business. Accordingly, in accordance with the powers vested under Section 9(1)(f) of the Financial Leasing Act No. 56 of 2000, the Central Bank has taken steps to revoke the certificate of registration of Co-operative Leasing Company, effective from June 10, 2026.

With this regulatory measure, Co-operative Leasing Company is completely prohibited from engaging in new financial leasing business activities. However, the Central Bank also points out that the company is not hindered from continuing its obligations and activities related to financial leasing agreements legally signed prior to the revocation of this license. This decision has been implemented as another step in the comprehensive reform program launched to strengthen supervision in Sri Lanka's non-bank financial sector, safeguard the stability of the financial system, and enhance the resilience of financial institutions.