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Arrest warrants issued against directors of ETI Finance Ltd.

ECONOMYNEXT – A Colombo Magistrate has issued warrants for the arrest of the Directors of Edirisinghe Trust Investments Finance Ltd., (ETIF) for failing to appear in court when a case filed by depositors came up for hearing today, June 16.

Colombo Additional Magistrate Priyantha Liyanage issued warrants for the police to arrest ETI directors Jeewaka Edirisinghe, Nalaka Edirisinghe, Asanka Edirisinghe and Deepa Edirisinghe.

The failed finance company is being sued by an association of around 2,500 depositors who are owed around 20 billion rupees.

The Central Bank which has taken over ETIF arranged a sale of the company’s assets to an investor that was expected to raise the cash.

Last year the Central Bank said the assets of the directors of ETIF were being sold to repay the depositors with 20 per cent of deposits paid at that time by selling the failed finance company’s subsidiaries and investment properties.

The sale of subsidiary and sub-subsidiary companies and investment properties of ETIF had raised 70 million US dollars.

These funds, equivalent to 11 billion rupees, have been already used to repay 20 per cent of the deposits and accrued interest liabilities of ETIF.

The company is currently processing a further 10 per cent repayment to the depositors.

At the time the CBSL had also initiated legal action to seize the personal assets of the directors and transfer those proceeds to ETIF.

The directors of ETIF had given the undertaking to transfer additional personal assets to cover the negative net worth of the company, it said. (Colombo June 16, 2020)

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Reported by Arjuna Ranawana