Financial Times

Appeal court rebuffs Central Bank over Pramuka
The Appeal Court on Friday rebuffed the Central Bank (CB) when it sought permission to sell some of the assets of the failed Pramuka Savings and Development Bank (PSDB). Justice P Wijayaratne told the bank that such permission was not necessary. The court had only stayed the liquidation of PSDB while the CB was required to continue the normal activities that they had to perform, the judge said.

K C Vignarajah, President, Pramuka Bank Restructuring Committee told The Sunday Times FT that the Committee had sought clarification from the CB on September 17, 2003 - 450 days ago, as to why the bank was not preventing deterioration of assets like vehicles, computers, equipment and perishable goods like rice, canned foods, etc pledged with PSDB, when it was under CB's control and supervision.

"The bank didn't respond then and is now seeking to sell some assets," he added. S M Sumanthiram with Viran Corea instructed by Moahan & Balendra appeared for Pramuka Depositors while Milinda Gunatilleke, State Counsel with Riad Ameen, State Counsel appeared for the Central Bank.

Meanwhile two leading financial institutions have expressed some interest in reviving Pramuka Bank, according to banking industry analysts. No details were available.

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