COLOMBO (EconomyNext) – Sri Lanka’s Central Bank will take over the task of repaying depositors of Golden Key Credit Card Company, an unregulated finance firm that collapsed six years ago, Finance Minister Ravi Karunanayake said.
“The responsibility of repaying depositors is now with the Central Bank,” he told a news conference after a meeting with depositors, hundreds of whom had flocked to the finance ministry Wednesday.
The depositors had during talks with Finance Ministry officials agreed to withdraw all court cases they had filed against Golden Key and its directors in an effort to recover their money.
This will be done on May 18 when the next court hearing is scheduled.
Karunanayake said the Central Bank will begin repaying depositors from assets of Golden Key and its directors already identified and also launch another probe with a committee made up of depositors andd Central Bank officials to try to trace whatever other assets they can.
It will repay depositors who had up to two million rupees in deposits within one month and repay those with up to 10 million rupees within two months, Karunanayake said.
The balance will be repaid before the end of one year.
The repayment scheme agreed with depositors is subject to court approval.
The Central Bank will not charge any administrative or legal expenses unlike an earlier arrangement.
Karunanayake agreed to the request of one depositor that all depositors be initially repaid one million rupees.
Karunanayake had also agreed to give the finance ministry undertaking in writing to court.
The agreement with depositors was reached in the presence of the media.
Karunanayake asked the depositors to give an assurance that they unanimously approved the agreement reached with the finance ministry, to which they responded positively.