Former Pramuka Bank opening delayed

By Bandula Sirimanna

Operations of the Sri Lanka Savings Bank, set up to revive failed Pramuka Bank, have been further delayed and may take off only after August 6. It was earlier scheduled to be open by June.

Palitha Gamage, director of the new bank and a representative of aggrieved depositors, said a case filed by Pramuka depositors was pending at the Appeal Court – and coming up on August 6 --- where some legal settlement on assets and liabilities is required to enable the new bank to start. Once ready, the new bank will operate from a leased building in Borella.

Deputy Minister of Finance, Ranjith Siyambalapitiya, who told The Sunday Times FT earlier that the bank would open on June 1, expressed regret at the delay. Some other reasons, he said were the resignation of the Chairman of the new bank Dr. Jagath Wickremasinghe citing personal reasons, and following proper tender procedures to lease out a building for the bank.

Siyambalapitiya said the package of incentives for Pramuka depositors formulated by the Finance Ministry, the Treasury, and the Central Bank along with the members of the Pramuka Depositors and Stake holders Association will be publicly known in the next few weeks.

Last week an 86-year old Pramuka depositor C.W.H Gunasekera, who had regularly written to The Sunday Times FT asking about the state of the new bank, said he was desperately in need of money for his medical expenses and like other 16,000 depositors was eagerly awaiting the date of opening of the new bank.