Ceylinco-controlled, The Finance Company (TFC) is to be revived by the Merchant Bank of Sri Lanka (MBSL) within six months from its current dire straits.
Like many other Ceylinco finance and real estate companies, there has been a run on TFC deposits as a result of the Golden Key fiasco and Sakvithi scam.
MBSL Chairman Janaka Ratnayake gave this assurance at a press conference on Tuesday after the company was appointed by the Central Bank as its managing agent.
He urged depositors to be patient, until they revived the TFC from a near collapsed state, and not to withdraw deposits for at least one year as they need time to stabilize the company. He added that every possible step would be taken to restore public confidence and to mobilize more deposits introducing new financial instruments and products.
The Central Bank had earlier entrusted the task of resurrecting the TFC to Lankaputra Development Bank and it has now completed its work on establishing financial stability and confidence of the company which has 45 branches countrywide. “The company collects nearly Rs. 1 billion a month from its leasing and hire purchase portfolios while interest payments are about Rs 500 million per month,” said Kamal Yatawara, TFC director.
MBSL, which is managing the affairs of F&G (again from the Ceylinco Group), is also acquiring control of Ceylinco Savings Bank.
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