Code of Ethics for registered finance companies

Just two years ago Sri Lanka experienced a calamity of Finance Company failures causing much damage to the level of public trust and confidence placed on Finance Companies as a whole. This can be attributed to the lapses and failures in governance, lack of transparency and unsustainable financial exposure in finance companies.

The Central Bank of Sri Lanka is making a renewed effort to enhance the quality of governance, equity and transparency of business operations of Finance Companies by implementing a Deposit Insurance scheme and introducing regulatory frameworks with new rules and guidelines.

Still the occasional emergence of financial crisis both locally and globally, leaves much room for anxiety and doubt regarding the adequacy of regulatory frameworks established by the Central Bank, particularly in relation to the financial security of the depositor and the general public at large. The scope of finance operations too has grown much more complex than what it was a few years ago.

In an attempt to address these concerns and to support the Central Bank's effort to ensure the growth of the sector, The Finance Houses Association has introduced the New Code of Ethics which will be a guideline for business operations of member finance companies in terms of customer services, confidentiality of information, legal obligations, employee recruitment, competitive initiatives and projecting the finance industry image.

The first copy of The Code of Ethics was presented to the Governor of CBSL by The Finance Houses Association at the Governor's Office, Central Bank of Sri Lanka. J.P.Mampitiya-Assistant Governor-CBSL, H.M. Ekanayaka - Director -Non-Bank Supervision -CBSL, Mrs. S.S.Wimalasena - former Senior Assistant Director, Regional Development Department of CBSL were present at this occasion along with K.J. Yatawara - Chairman of The Finance Houses Association (Director/CEO-The Finance Co. PLC and Council Members of FHA Sumith Adhihetty (Managing Director-LB Finance PLC), Hafeez Rajudin (Managing Director- Arpico Finance Co. PLC) & Shermal Jayasuriya (Finance Director- Mercantile Investments and Finance PLC) at the event. K.J. Yatawara - Chairman of The Finance Houses Association (Director/CEO-The Finance Co. PLC) is seen handing over The Code of Ethics to Ajith Nivaard Cabraal - Governor of the Central Bank of Sri Lanka (CBSL) in the presence of all attendees at the event. Ajith Nivaard Cabraal - Governor of the Central Bank of Sri Lanka (CBSL) and H.M. Ekanayaka - Director - Non-Bank Supervision-CBSL is seen accepting copies of The Code of Ethics whilst K.J. Yatawara - Chairman of The Finance Houses Association (Director/CEO-The Finance Co. PLC and Council Member of FHA Romani De Silva (Managing Director-Alliance Finance Co. PLC) look on.