CIFL depositors face new crisis
Depositors of the failed Central Finance and Investments (CIFL), given some hope by the Central Bank (CB), have been stumped by a possible misunderstanding that their problems are over.
At a recent meeting between the CIFLDA (CIFL Depositors Association) and the CB, the latter appeared to indicate that if the association withdraws its case in court, the CB will find an investor and provide matching funds to revive the company.
Following this ‘assurance’, the depositors withdrew the case and wrote to the CB saying they had kept their part of the bargain, and that “We appreciate your kindness and dedication to release Rs.1 billion loan facility to CIFL for restructuring the company with the help of investors.”
However in response, the CB wrote back saying: “We wish to inform you that this is factually incorrect and it is only stated at that meeting that the Central Bank is in a position to provide funds from Sri Lanka Deposit Insurance and Liquidity Support Scheme (SLDSS) once the company finds a new investor/investors and infuse the required capital to company in line with Financial Sector Consolidation Plan”.
CIFLDA President Wijeya Goonawardena, told the Business Times (BT) that the latest position of the CB is a matter to be of grave concern as the case, now withdrawn, was the only hold they had on the CB.
He said they have received information that CIFL is trying to close down all the branches and centralise all CIFL functions in Colombo and if so there would be nothing left to restructure.
CIFLDA alleges that the invisible hand of Deepthi Perera alias ‘Chulaka Gunawardena’ a Navy deserter and a former CIFL Chairman, is sabotaging the business plan. He said that it is unfortunate that the CIFL restructuring plan is getting regularly delayed and it is high time the Government takes concrete action to expedite the restructure as older depositors will die before they get relief.
The CB has said in the past that it is in discussion with three foreign investors to revive the failed company.