Relief finally for desperate Pramuka depositors

The government last week said depositors of the failed Pramuka Bank would get the long-awaited relief they need with the setting up of the the proposed “Nava Lanka Ithirikireeme Bankuwa” or New Lanka Savings Bank.

Deputy Finance Minister Ranjith Siyambalapitiya told a meeting with the depositors and new bank officials at the Finance Ministry that it is proposed to form a new bank and transfer all assets and liabilities of Pramuka Bank to the new unit providing the necessary security to depositors of Pramuka, closed more than three years ago due to mismanagement and bad loans.

Under this deposits of the failed Pramuka Bank will be transferred to New Lanka Savings Bank and provision made to recover loans on a priority basis. The bill setting up the new bank is due to be presented to parliament in the first week of July.

The minister said that although this bank is operating on a special license, the bank will not give loans to the public. It will receive deposits in cash from the public, government and other institutions and these would be deposited as Treasury bills only. Treasury Secretary Dr. P.B. Jayasundere explained that that all deposits made would be treasury guaranteed deposits. He said in an effort to support and strengthen the new bank it was necessary to maintain the deposits made for at least a period of one year thus not providing for withdrawals except on a case by case basis.