Sri Lanka Savings Bank takes over Pramuka Bank

The Government set up a State bank, "Sri Lanka Savings Bank Ltd" to take over the business of the Pramuka Bank and amended the Banking Act to vest the business of Pramuka Bank in a State bank.

According to the new provisions of the Banking Act, the Monetary Board of the Central Bank has two functions to fulfill in this regard, i.e. issuing the order for vesting of the business of Pramuka Bank in the State bank and formulation of a scheme for meeting the claims and demands of creditors and depositors on liabilities of Pramuka Bank by the new State bank.

The Monetary Board has now accomplished those tasks as follows: The Monetary Board issued the order vesting the business of Pramuka Bank in Sri Lanka Savings Bank Ltd., from August 1, 2007. Accordingly, all properties, assets, liabilities, rights and contracts relating to the business of Pramuka Bank will be a part of the business of Sri Lanka Savings Bank Ltd.

In addition, Sri Lanka Savings Bank Ltd. which is a bank licensed by the Monetary Board, will carry on the business of accepting time and savings deposits from the public and investing such funds in government securities.

The scheme to meet the claims and demands of creditors and depositors on liabilities of Pramuka Bank formulated by the Monetary Board taking into consideration the suggestions by the Board of Directors of Sri Lanka Savings Bank Ltd. has been forwarded to the bank.

This scheme will be published in the national newspapers for the information of the public in due course once the Board of Directors of Sri Lanka Savings Bank Ltd. gives its consent.

Accordingly, the public and all customers of the Pramuka Bank are informed that Sri Lanka Savings Bank Ltd. will lawfully own and manage all assets of Pramuka Bank and take all action to recover any dues.

The bank will also settle the liabilities of Pramuka Bank to depositors and creditors according to this scheme which will be made known to the public in due course. The Sri Lanka Savings Bank Ltd. is at D. S. Senanayake Mawatha, Colombo 8.