CBSL freezing orders 2026 have placed renewed attention on a basic financial-safety question that many people only ask after money has already been handed over: is the organisation receiving my money actually authorised to accept deposits? On 22 September, the Central Bank of Sri Lanka announced that freezing orders are currently in force against six companies and their directors under the Finance Business Act, No. 42 of 2011, with the High Court of Colombo having confirmed and extended those orders. The official announcement is listed under the Central Bank of Sri Lanka’s Non-Bank Financial Institutions press releases.
The announcement is important not only because six companies have been named. It also shows why the public should distinguish between an ordinary registered company, a business offering an investment opportunity and an institution legally permitted to take deposits. A company can be properly incorporated under company law without automatically having authority from CBSL to conduct finance business or accept public deposits.
CBSL Freezing Orders 2026: The Six Companies Named
The six companies listed by CBSL are Kasagala Green Plantation (Private) Limited, Ceylon Green Life Plantation (Private) Limited, Singhe Capital Investment Limited, Pro Shop Advertising Holdings (Private) Limited, Athens International Education Centre (Private) Limited, and Eyon Lanka Investment & Film Production International Company (Private) Limited. The freezing orders also extend to the directors concerned and prevent the disposal, transfer or other dealing with properties and assets covered by the orders.
There is, however, an important legal distinction within the list. CBSL says investigations are currently being conducted under Section 42 of the Finance Business Act in relation to Kasagala Green Plantation and Ceylon Green Life Plantation. For the other four companies, CBSL states that it has already determined that they carried on finance business and/or accepted deposits in contravention of Section 2 of the Act.
That distinction should be preserved when reporting the matter. It would be inaccurate to describe all six companies as having reached exactly the same stage of regulatory determination, because two remain under investigation while CBSL has already made findings regarding the other four.
What Does a Freezing Order Actually Do?
A freezing order is a protective regulatory measure used while the Central Bank deals with suspected unauthorised finance activity. Section 44 of the Finance Business Act allows the Director responsible for supervision of non-bank financial institutions to prevent a person or company under investigation from disposing of assets, entering specified transactions, soliciting or mobilising deposits, or conducting transactions involving accounts, property or investments.
In this case, the Colombo High Court has confirmed and extended the relevant orders. The practical purpose is to stop assets or funds covered by the order from being moved, transferred or otherwise dealt with while the legal and regulatory process continues.
A freezing order should not, however, be interpreted as a guarantee that everyone who placed money with an affected company will automatically recover the full amount. Recovery will depend on the specific circumstances, available assets and the outcome of the regulatory and legal process. The order is primarily designed to prevent further movement of assets while those matters are being addressed.
Who Is Legally Allowed to Accept Public Deposits?
This is the most useful lesson for ordinary customers.
Under Section 2 of the Finance Business Act, a person cannot carry on finance business or accept deposits unless authorised under the Act or specifically exempted. CBSL explains that public deposits may be accepted by Licensed Commercial Banks, Licensed Specialised Banks and Licensed Finance Companies, together with certain institutions that have specific statutory exemptions.
The important point is that a Registrar of Companies certificate, attractive office, professional website, well-known director or promise of a high return is not proof of CBSL authorisation. Even the use of words associated with finance or investment should never replace a direct licence check.
Before transferring money, customers can verify finance companies through the CBSL Finance and Leasing Companies directory. The directory identifies companies licensed under the Finance Business Act and explains the regulatory framework applying to them.
High Returns Should Not Replace a Licence Check
Unauthorised deposit-taking schemes can sometimes be presented as investments, business partnerships, advertising packages, plantation programmes or other commercial arrangements rather than being called deposits directly. That makes verification more important because the label placed on a transaction does not necessarily determine its legal substance.
CBSL’s earlier regulatory notices illustrate this point. In relation to Pro Shop Advertising Holdings, for example, the Central Bank previously determined that deposits had been accepted through arrangements involving advertising packages and directed the company not to accept further deposits.
Consumers should therefore ask several questions before handing over money: who regulates the organisation, what licence permits it to receive the money, whether the institution appears on an official CBSL list, and what legal protection applies if the business cannot repay. If those answers are unclear, the promised return should not be the deciding factor.
Deposit Insurance Is Another Reason Licensing Matters
Sri Lanka’s deposit insurance framework provides another important distinction between regulated and unregulated institutions. The Sri Lanka Deposit Insurance Scheme covers eligible deposits at member institutions, which currently include licensed commercial banks, licensed specialised banks and licensed finance companies.
The current coverage is up to Rs. 1.1 million per depositor, per institution, subject to the rules and eligibility requirements of the scheme.
Customers should not assume that money handed to an unauthorised entity automatically receives the same protection simply because the arrangement was described as a deposit or investment. This is one of the strongest practical reasons to verify an institution before funds are transferred, rather than attempting to establish its regulatory status only when repayment problems arise.
If You Have Already Placed Money With an Affected Company
Anyone who has already dealt with one of the named companies should avoid acting on rumours or informal instructions circulating through social media. Customers should retain deposit receipts, agreements, bank-transfer records, correspondence and any other documents that demonstrate the transaction and the amount involved.
They should also follow official instructions issued by CBSL or the relevant legal authorities as the process develops. The Central Bank specifically encourages the public to report institutions or individuals that appear to be accepting deposits in contravention of the Finance Business Act.
People should be particularly cautious if they are asked to make additional payments supposedly to “release”, “renew” or recover existing funds. Any new payment involving a company subject to a freezing order should first be checked against official regulatory instructions.
This Is Part of a Wider Regulatory Responsibility
The latest action also shows the difference between regulation of licensed financial institutions and enforcement against businesses operating outside the permitted framework. CBSL’s Department of Supervision of Non-Bank Financial Institutions is responsible not only for supervising licensed finance and leasing companies but also for investigating suspected unauthorised finance business and deposit taking.
The Finance Business Act gives the Central Bank investigative and asset-freezing powers precisely because waiting until money has disappeared would make enforcement considerably more difficult. By the end of 2024, CBSL had initiated 158 investigations into suspected unauthorised finance businesses and obtained multiple High Court extensions for freezing orders, illustrating that this is an established area of financial-sector supervision rather than an isolated intervention.
For related regulatory developments, readers can also see Lanka Biz News coverage on the cancellation of a finance-leasing registration and the SEC warning concerning the unlicensed Bomate app.
The Simplest Protection Is to Check Before Paying
The Central Bank’s latest message is straightforward: members of the public should deposit money only with legally authorised institutions. That advice can sound obvious, but modern financial products are increasingly marketed through social media, referral networks, online advertisements and business structures that may not look like traditional deposit-taking.
The best protection therefore begins before any return is promised or any agreement is signed. Check the exact legal name of the institution, confirm its regulatory status directly through CBSL and understand whether the money is a regulated deposit, an investment carrying risk or something else entirely.
The six freezing orders announced in September are ultimately more than a list of company names. They are a reminder that registration as a business and authorisation to take people’s savings are not the same thing, and that a few minutes spent checking an official licence can prevent a much more difficult financial problem later.
This article is for public information and business-awareness purposes only. A freezing order is a regulatory and legal measure and should not be interpreted as a final criminal conviction against every company or individual named. Members of the public should follow official CBSL notices and obtain professional advice where necessary.
