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| Sunday, 22 August 2004 |
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Central Bank to pay Pramuka depositors All depositors of the Pramuka Savings and Development Bank, which was liquidated recently by cancelling its licence will be paid their dues by the Central Bank (CB). Initially all depositors who had placed deposits below Rs 5000 will be reimbursed their money at the end of this month. There are more than 9,104 depositors who had invested below Rs 5000. CB Governor, Sunil Mendis, said that cabinet approval has been given to amend the Banking Act, which will be tabled in the parliament. He said that once the act is amended additional 2000 depositors who have invested between Rs 5000- 20000 will receive their dues, while other depositors also will get their money in due course. Director Bank Supervision has been appointed as the Chief liquidator for this purpose, Mendis said. To expedite the liquidation process the CB has established two committees one to look in-to policy matters and other to see day to-day operations, Central Bank Governor said. Mendis said that the Road Development Authority, Public Trustee, Samurdhi Trust and Rural Development Bank are some of the large scale depositors of the bank. Depositors dues would be initially paid from the banks cash assets available. This is around Rs 460 million. Pramuka bank has also invested in Treasury bills, which too would be used to pay back the depositors. The bank's immovable assets and loans due from these customers would be utilised to settle the final payments. The monthly rental of the bank premises place has increased from Rs 1.2 million to 3 million, which has to be paid from depositors money. This has compelled the Central Bank to shift its premises from Colombo 2 to Rajagiriya. CB under the Company and Banking Act has retrenched its excess staff to 10 from 60. Director Bank Supervision Department, Joan de Zilva Moonesinghe said that there have been many instances that the Banks have been liquidated but this is the first bank in Sri Lanka to be wound up. Asian Capital Ltd's proposal on restructuring of the banks is under consideration by the CB, Moonesinghe concluded. |
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