|
|
 |
 |
| Sunday, 16 March 2003 |
 |
|
 |
News |  |
| News Business Features Editorial
|
Central Bank approval sought to reopen Pramuka Bank by JAYANTHI LIYANAGE The Janashakthi Insurance Co. Ltd. is seeking Central Bank approval to reopen and restructure Pramuka Bank which was shut down in October 2002. Ramesh Schaffter, Secretary to the Board of Janashakthi Insurance Co. Ltd, met P. P. Sirisena, Director of Bank Supervision, Central Bank, on Friday to discuss the possibility of securing approval to submit a proposal to this effect. Representatives of the Pramuka Depositors Association were also present at this meeting. "Janashakthi has a mandate from the Pramuka shareholders to initiate this course of action," said Schaffter, explaining that, as the insurance company is the largest shareholder of Pramuka with 13% shares, depositors had urged them to do so. "We have asked the Central Bank to provide us with the necessary information of Pramuka. The bank cannot be opened in its present form as there is substantial loss-making," he said."We have still not been allowed to look at Pramuka's accounts," said Chandra Schaffter, Managing Director/CEO, Janashakthi. "At the moment, we are only offering to do a feasibility report. A plan of action can be devised only after we examine the accounts." "Janashakthi, which is an efficient entity in the Insurance sector, has our fullest support in this effort," said Palitha Gamage of Pramuka Depositors' Association, which has a membership of 15,000 depositors. The Association has already initiated court action seeking a stay order to prevent liquidation of Pramuka and is planning a second court action to compel Central Bank to pay them interest on deposits for the period of closure from October 25, 2002. Hearings of formal action is scheduled for March 20 and 29 and April 3, consequent to which the Association will meet on April 20, to discuss their future strategy. |
|
News | Business | Features
| Editorial | Security Produced by Lake House |
