Pramuka Bank-substitute ops in 2-3 months

By Bandula Sirimanna

The Sri Lanka Savings Bank (SLSB) is finally getting off its ground as the long-awaited substitute to the failed Pramuka Bank but the start-up date is being disputed by the bank and the Central Bank.

A senior Central Bank official said the SLSB can commence operations within the next three or four weeks as all the assets of Pramuka Bank was transferred to the newly established bank on August 1.

But the management of the new bank said it would take at least two to three months before public business can start. Checking of documents in relation to assets, liabilities and contracts will take at least a couple of months to complete, officials said.

SLSB Director Palitha Gamage, also the President of Pramuka Bank Depositors Association, appealed to depositors to be patient for a month or so as the Board of Directors had to take a decision on the reopening of the bank and to finalize other arrangements.

The Sunday Times FT reliably learns that at least 40 percent of Pramuka assets were bad assets and the newly established bank has to write off bad debts of around Rs 2.2 billion hidden for years through fraudulent accounting. The failed Pramuka bank was taken over by the Central Bank in 2002 after bad management.