Central Bank closely monitors EAP Group deal    

 
Sri Lanka’s Central Bank (CB) is closely monitoring the deal between the EAP Group and a Singapore investment fund company to sell its subsidiaries of the group and rescue a struggling finance company, CB Governor Indrajit Coomaraswamy said in Colombo on Wednesday. The Singapore investment is meant to resuscitate the ailing Edirisinghe Trust Investment Finance Ltd (ETIFL). 
 
He told reporters that the full financial commitment in the deal would be made in several trenches and the CB is watching as to whether the money being remitted to the company as capital is sufficient to meet this finance company’s commitments.
 
He noted that the investment will come in, in tranches and the CB is monitoring the credentials of the investor.
 
Apart from this, investigations are being carried out as to how the ETIFL had fallen into an abyss and persons responsible for its financial crisis.
 
ETIFL a licenced non-bank finance institution, is to be revived with a capital infusion of US$17 million by a Singapore based Investment Fund Company aimed at protecting disgruntled depositors, informed official sources revealed.
 
EAP Group has entered an agreement with this company to sell some of its major subsidiaries at a price of US $75 million with the sole aim of protecting over 35,000 depositors of ETIFL and Swarnamahal Financial Services PLC, a high official closely connected to the deal said. (Bandula)