The Central Bank (CB) has appointed an expert group to advise and assist in the implementation of the 8-point stimulus package for ailing finance and leasing companies and has also taken special measures of intervention for four registered finance companes under the Ceylinco Group. The four member expert group includes the President of the Institute of Chartered Accountants of Sri Lanka Nishan Fernando, Attorney-at-Law Arittha Wickramanayake, President of the Association of Accounting Technicians of Sri Lanka and Additional General Manager of National Savings Bank H.M. Hennayake Bandara and Deputy Chairman of Browns Group of Companies Ajith Devasurendra.
The CB said the Merchant Bank of Sri Lanka PLC has been permitted to enter into a management agreement with The Finance and Guarantee Company Ltd., so that its activities would be managed and monitored by the Merchant Bank. Negotiations are presently underway in relation to the engagement of a suitable managing agent for both Ceylinco Investment, Realty Ltd and Asian Finance.
The CB stated it is closely monitoring the progress of such negotiations. Regarding The Finance Company, the CB stated that it has identified certain key executives who would be entrusted with the company’s overall management responsibilities. These appointments are due to be made within the next two days. Meanwhile, assessments are being made to the current situation so that the necessary interventions can be made by the selected management team expeditiously, under the guidance and advice of the Expert Group.
The CB said the measures and its quick implementation are expected to stabilize the above mentioned companies of the Ceylinco Group in the near term and as a result, the business operations of such institutions are expected to be restored to normalcy. Further, the CB advised those engaged in business with these four institutions to cooperate and exercise a certain degree of patience so that the new measures that are being implemented would serve to stabilize these institutions. |
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