The Central Bank of Sri Lanka will commence compensation payments to insured depositors of Nation Lanka Finance PLC starting August 1 through People's Bank branches, following the finance company's license cancellation in July.
Sri Lanka's central bank has announced it will begin distributing compensation to eligible depositors of Nation Lanka Finance PLC from August 1, 2026, through branches of People's Bank across the country. The compensation scheme, established under the Banking (Special Provisions) Act and the Sri Lanka Deposit Insurance Scheme (SLDIS), will provide coverage up to a maximum of Rs. 1,100,000 per depositor from their total aggregate deposits with the failed finance company.
The decision follows the central bank's cancellation of Nation Lanka Finance's operating license on July 3, 2026, in accordance with regulatory provisions. Affected depositors will have until July 2, 2032, to file claims for compensation. The central bank will process payments through three methods: direct cash withdrawals at participating bank branches, transfers to existing People's Bank accounts, or by opening new accounts at People's Bank for eligible claimants.
Depositors seeking compensation must submit completed claim forms along with supporting documentation, including original deposit certificates and identification documents. Those with aggregate deposits below Rs. 5,000 who already maintain People's Bank accounts may submit materials electronically. Joint account holders are required to file separate claim applications. The central bank has established a dedicated email address (cbslcompensation@peoplesbank.lk) and hotline (1935) to assist depositors with inquiries, and claim forms are available on the central bank's website and at designated People's Bank locations.
