Finance & Guarantee Company Ltd (F&G), part of the Ceylinco Group, is grappling with the financial crisis with no solution in sight. Negotiations are underway with a subsidiary of a state financial institution to set up a management council to guide the F&G, the Finance & Guarantee Real Estate Company Ltd and Finance & Guarantee Property Developers (Pvt) to overcome the current financial crisis of these companies .
This state financial institution will provide consultancy and issue guidelines on handling affairs of these companies, a senior official of this institution told the Sunday Times FT.
However this arrangement has not been finalized although the matter was discussed with the Central Bank authorities, he said. While F&G is registered with the Central Bank, the other two companies are not licensed to accept deposits.
When contacted over the phone, Deputy Chairman of Ceylinco Group Mervin Jayasinghe told The Sunday Times FT this council will work out a plan and package of payment for depositors and investors of the three companies very soon. He said that the company’s financial crisis has arisen not because of any fraud but for not getting returns from their investments and from their day –today business. The repayment scheme will be published in the newspapers and all these activities will be conducted in a transparent manner, he said. But depositors and investors of these companies complained that the F&G has so far failed to show their commitment of honouring their promise as senior officials are making evasive tactics.
Meanwhile Colombo Additional Magistrate Gihan Ranawaka on Tuesday issued summons on the directors of Finance & Guarantee Property Developers (Pvt) Limited including Lalith Kotelawala and Mervin Jayasinghe to appear before court on March 13 to inquire into a complaint of issuing an invalid cheque to the value of Rs 7 million to a depositor of the company. |
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