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Sri Lanka President calls for joint committee to monitor failed finance companies

ECONOMYNEXT – Sri Lanka’s President Gotabaya Rajapaksa had called for a four way joint committee to monitor the resolution of failed finance companies and asked the central bank to get legal advice on insolvent companies, his office said.

“President Gotabaya Rajapaksa has directed the officials of the Central Bank to deliver justice to the depositors of the ETI Finance and The Finance Company PLC after seeking legal advice regarding those insolvent companies immediately,” a statement said.

“President Rajapaksa further said that a committee representing the Presidential Secretariat, the Central Bank, the Treasury and the depositors should be established to monitor the future course of actions on this issue.”

President Rajapaksa had called summoned a meeting at the Presidential secretariat on June 29 to review the process on repaying depositors of ETI Finance and the Finance Company.

Governor of the Central Bank W D Lakshman had said measures would be presented at the next Monetary Board meeting to give solutions to complaints.

“In addition, the governor assured that he will address short comings at the Central Bank which directly impact the general public and restore its dignity as an institution,” the statement said.

“President Rajapaksa said that the assets of the ETI Investments and The Finance Company will be assessed and take over without litigation and the money owed to the general public will be returned.

“President further added that stern action will be taken against persons who fail to repay their loans.” (Colombo/June30/2020)