Sri Lankan finance company makes big loss
Oct 21, 2009 (LBO) –Sri Lanka's The Finance Company (TFC), a former unit of the troubled Ceylinco Group, said it made a 2.5 billion rupee loss in 2008, owing to a slump in property prices and a run on deposits.
TFC said in a statement the company had been adversely affected by the high profile collapses of unregistered finance companies which triggered a run on deposits at other firms.
TFC was an influential player in the property market with large holdings of land in the city and suburbs. However with the burst of the property bubble, land values have shrunk.