Failed Standard Credit depositors urge CB to liquidate company
View(s):Due to the action taken by the Central Bank to liquidate one of the failed finance companies – Central Investment and Finance Ltd (CIFL), depositors of another failed finance company are also interested in getting their deposit money back, expedited and to commence the liquidation process of that company too.
Ravi Rajapathirana, a depositor of the failed Standard Credit Finance (SCF), has written to Central Bank (CB) Governor Dr. Indrajit Coomaraswamy indicating that they have a nagging suspicion that some high officers of the CB are allegedly acting on the instructions of former Ceylinco Group chief Lalith Kotelawela and dragging on the SCF matter.
Writing on behalf SCF depositors, he has said SCF owns one and a half floors of the Ceylinco House, the flagship monument of the Kotelawalas and he appears unwilling to see that building go to another on liquidation. These disgruntled depositors of SCF have been fighting for more than 10 years to get their money back.
SCF depositors said they expect the CB to decisively move forward to commence liquidation process with regard to SCF too as done in the case of CIFL
Mr. Rajapathirana has said that the Sri Lanka Deposit Insurance and Liquidity Support Scheme Regulation No.1 of 2018 can pay 64 per cent of depositors in full and bring immediate relief to a majority of depositors of their company. He points out that on liquidation of the company assets and the assets of the former directors, the proceeds can be used to pay other depositors the best amount possible.
He also reminded the Governor that when they met Minister Dr. Harsha de Silva, then an MP four and a half years ago, Dr. de Silva has promised them prompt relief but he too has failed the depositors. The Supreme Court Case with regard to SCF would be taken up for hearing on March 29.
(QP)