Ceylinco Shriram to settle investors

Ceylinco Shriram is to settle all their investors, in a repayment plan overseen by the Central Bank of Sri Lanka, and will accordingly pay the full outstanding amount within a stipulated time period. Thus, 60 percent of the total outstanding amount will be paid within a period spanning 42 months, in accordance with the wishes of the Central Bank.

The first two instalments in this payment plan have already been paid to those investors who had confirmed with Ernest and Young, as required by the Central Bank. Meanwhile, the Central Bank has also given approval to sell or to find investors for the major investments and assets of Shriram, such as Celestial Towers, Pioneer Towers and the several apartments at Trillium, as well as the Hire Drive in Battaramulla. The Celestial Towers transaction it is hoped will bring in a 40percent portion of the repayment plan upon realisation.

Meanwhile, the Watawala Committee, appointed to oversee the successful implementation of the project has had fruitful dialogue with the depositors and investors, as well as the management of the company, obtaining their views prior to the implementation of the repayment plan.

Ceylinco Shriram remains the first company to come out with a practical payment plan, which fulfils the aspirations of its depositors. And another strong contributing factor to the successful realisation of this project has been the unwavering commitment of the Directors of Ceylinco Shriram, who have leant their support in order to see the plan successfully get off the ground. Though Ceylinco Shriram was well managed, it fell victim to circumstances, suffering in consequence to a loss of faith by the public. Even the global banking and financial sector could not withstand a run similar to what took place in Sri Lanka, and Shriram, until December 2008, met all interest payments on time. However, depositors are now beginning to renew their faith in the Shriram Directors, while many praise them for the manner in which they have contained and handled the situation.

In this regard, initially Mangala Boyagoda and Wealth Lanka did an admirable job in formulating the basis for the repayment plan, while the active participation of the Directors towards its successful implementation saw it through.

The Shriram Directors stood firmly behind the Watawala Committee, in order to collect monies due to the company from its debtors.