LNP - Central Bank warns against unauthorized use of ‘Finance’ in business names

The Central Bank of Sri Lanka (CBSL) has issued a warning against the use of word ‘Finance’ in business names. Accordingly, the CBSL clarified that the use of the word ‘Finance’ is in contravention of the provisions of the Finance Business Act, No. 42 of 2011, as per Section 10(2) of the Finance Business Act, No. 42 of 2011 (the Act), which states that no person, other than a finance company and an institution specified in Section 10(6) of the Act, shall use the terms ‘finance’, ‘financing’, or ‘financial’ alone or in combination with another word or any of its derivatives or its transliterations or their equivalents in any language, as part of the name or the description or the business name of such person without prior written approval of the Central Bank of Sri Lanka. In terms of Section 56(4) of the Act, any person who contravenes or fails to comply with the said provision is guilty of an offence under the Act, it pointed out. Meanwhile, the CBSL highlighted that the public is strongly advised to adhere to the aforesaid legal requirement.