Central Finance Company

Central Finance Company PLC is a Sri Lankan non-bank financial institution founded in Kandy in 1957 by Chandra Wijenaike. It developed as one of the country’s older finance companies and became a publicly listed business on the Colombo Stock Exchange in 1969. Its core activities include leasing, hire-purchase financing, mobilization of public deposits and other financial services conducted under the regulatory framework for licensed finance companies in Sri Lanka. The company’s traditional business model has centered on financing assets and customer purchases rather than operating as a conventional commercial bank. Leasing and hire-purchase products allow customers to obtain vehicles, equipment and other assets through structured repayment arrangements, while deposit products provide a source of funding and an investment option for the public. Central Finance has also described its broader purpose in terms of helping customers grow and prosper, creating value for shareholders and conducting business responsibly. Its stated vision is to become a preferred partner for progressive customers through innovative financial solutions. The company expanded beyond its original finance operations over time. By 1999, it was headquartered in Kandy and had nine branches together with two non-deposit-taking outlets. It later diversified into activities including real-estate development and insurance brokering. Its wider corporate interests have included Central Industries PLC and Kandy Private Hospitals (Pvt) Ltd, while its investment portfolio has included interests in Nations Trust Bank, Tea Smallholders Factories PLC and Capital Suisse Asia Ltd. These holdings indicate a broader financial and corporate-investment role alongside the company’s customer-facing finance business. In November 2014, Central Finance acquired a 90.1 percent interest in Isuru Leasing, a smaller finance company based in Kandy. The transaction was reported in the context of efforts to consolidate Sri Lanka’s financial-services sector. Central Finance has also been subject to regulatory attention concerning its investment in Nations Trust Bank. The Central Bank of Sri Lanka’s Monetary Board instructed Central Finance and John Keells Holdings to reduce their respective stakes in that bank, with lower permitted ownership thresholds applying at later dates. The company’s public profile includes recognition in Sri Lankan business and brand rankings. Brand Finance placed it 28th among Sri Lanka’s most valuable brands in 2021, while LMD ranked it 44th in the LMD 100 for the 2019/20 financial year. Fitch Ratings assigned Central Finance an A+ rating in 2019, according to the referenced company material. Central Finance remains principally associated with Sri Lanka’s regulated non-bank financial sector, with a business scope spanning retail and commercial asset finance, deposits, investments and selected subsidiaries or affiliated interests.

Central Finance Company was established in Kandy in 1957 by Chandra Wijenaike. It emerged during the development of Sri Lanka’s formal finance sector and built its identity around lending and asset-finance services. The company was listed on the Colombo Stock Exchange in 1969, giving it access to public equity markets and placing it among the country’s established listed financial businesses. By 1999, Central Finance was headquartered in Kandy and operated nine branches as well as two non-deposit-taking outlets. Its branch network supported the distribution of leasing, hire-purchase and deposit services across Sri Lanka. The company was authorized as a licensed finance company under the Central Bank of Sri Lanka’s regulatory framework, including the ability to accept deposits from the public. Over the following decades, Central Finance broadened its activities beyond its core lending operations. Its areas of diversification included real-estate development and insurance brokering. The company also developed a group and investment structure involving subsidiaries, affiliates and strategic shareholdings. Reported interests included Central Industries PLC, Kandy Private Hospitals (Pvt) Ltd, Nations Trust Bank, Tea Smallholders Factories PLC and Capital Suisse Asia Ltd. In November 2014, Central Finance purchased a 90.1 percent stake in Isuru Leasing, a small Kandy-based finance company. The acquisition was presented within the wider consolidation of Sri Lanka’s financial-services industry and strengthened Central Finance’s position in the local leasing and finance market. A shareholder-related controversy arose after Perpetual Treasuries, the primary dealer connected with the Central Bank of Sri Lanka bond scandal, invested heavily in Central Finance and entered its top-ten shareholder group in 2016. The investment did not by itself establish misconduct by Central Finance, but it linked the company’s shareholder register to a prominent episode in Sri Lankan financial news. Central Finance’s ownership position in Nations Trust Bank also became subject to regulatory action. The Monetary Board directed Central Finance and John Keells Holdings to reduce their stakes, applying a 20 percent maximum at the end of 2021 and a 15 percent maximum at the end of 2022. This reflected regulatory limits on ownership concentration in the banking sector. The company has continued to be identified with Sri Lanka’s non-bank financial industry. Its public profile has included an A+ Fitch rating in 2019, a 28th-place ranking in Brand Finance’s 2021 Sri Lankan brand valuation, and a 44th-place position in LMD 100 for the 2019/20 financial year. Its stated mission emphasizes responsible business, customer prosperity and lasting shareholder value, while its vision focuses on becoming a preferred partner for customers seeking innovative financial solutions.

1. 2021Brand Finance ranking

   Brand Finance ranked Central Finance as the 28th most valuable brand in Sri Lanka for 2021.

   Source
2. 2019A+ Fitch rating reported

   The company was reported as having received an A+ rating from Fitch Ratings.

   Source
3. 2016Perpetual Treasuries enters top-ten shareholder group

   Perpetual Treasuries became one of Central Finance’s ten largest shareholders after investing substantially in the company.

   Source
4. 2014Acquisition of Isuru Leasing

   Central Finance acquired a 90.1 percent stake in Isuru Leasing, a Kandy-based finance company.

   Source
5. 1999Branch network documented

   The company was headquartered in Kandy and operated nine branches and two non-deposit-taking outlets.

   Source
6. 1969Listed on the Colombo Stock Exchange

   Central Finance became a listed company on the Colombo Stock Exchange.

   Source
7. 1957Company founded in Kandy

   Chandra Wijenaike founded Central Finance Company in Kandy, Sri Lanka.

   Source

A long-established Sri Lankan licensed finance company positioned as a responsible, customer-oriented provider of asset finance, deposits and broader financial solutions.

• LeasingAsset finance

  Leasing is one of Central Finance’s principal services. It enables customers to use financed assets, typically vehicles or business equipment, while repaying the finance company under an agreed schedule. The product reflects the company’s role as a non-bank provider of asset-backed credit in Sri Lanka.

• Hire purchaseConsumer and commercial finance

  Hire-purchase financing supports the acquisition of vehicles and other assets through periodic payments. It is a core part of Central Finance’s customer-finance offering and complements its leasing business.

• DepositsDeposit services

  As a licensed finance company authorized to accept deposits from the public, Central Finance mobilizes deposits as part of its funding model and provides deposit-oriented financial services to customers.

• 2021Reduce Nations Trust Bank ownershipStrategy

  The Monetary Board of the Central Bank of Sri Lanka required Central Finance and John Keells Holdings to reduce their stakes in Nations Trust Bank.

  What changed. Central Finance was directed to reduce its holding to no more than 20 percent at the end of 2021 and 15 percent at the end of 2022.

  Aftermath. The direction placed the company’s strategic bank investment under a staged reduction timetable.

  Source
• 2014Acquire Isuru LeasingM&A

  The transaction occurred during efforts to consolidate Sri Lanka’s financial-services sector and involved a smaller finance company based in Kandy.

  What changed. Central Finance acquired a 90.1 percent stake in Isuru Leasing.

  Aftermath. The acquisition expanded Central Finance’s interests within the local leasing and finance market.

  Source

• 2016Shareholding connection to the Perpetual Treasuries bond scandalControversy

  Perpetual Treasuries, the primary dealer associated with Sri Lanka’s central-bank bond scandal, invested heavily in Central Finance and entered the company’s top-ten shareholder group. The available reference material identifies a shareholder connection but does not allege that Central Finance itself committed misconduct.

  Source

• 2021Central Bank directs reduction of Nations Trust Bank stakes

  The Monetary Board of the Central Bank of Sri Lanka directed Central Finance and John Keells Holdings to reduce their holdings in Nations Trust Bank, with a maximum of 20 percent at the end of 2021 and 15 percent at the end of 2022.

  Regulation
  Source
• 2014Central Finance acquires majority stake in Isuru Leasing

  Central Finance acquired a 90.1 percent interest in Isuru Leasing, a smaller finance company based in Kandy, as part of the consolidation of Sri Lanka’s financial-services sector.

  M&A
  Source

1. Central Finance Company