Hapless depositors caught in a web of red tape spun by the CSE

We, the members of the Deposit Protection Society of the Standard Credit Finance Company, are compelled to reveal to the Government and the people of Sri Lanka, the unhappy situation we have been placed in by the Colombo Stock Exchange (CSE) while tryingto get back our hard earned monies which have been held back from us for the past six and a half years.

1. We have had many discussions with the Central Bank of Sri Lanka (CB) and the Managing Agents, Entrust Ltd, of the aforementioned finance company of which we are now voting shareholders owning nearly 30 per cent of its share capital. With our consent the company sought the approval of the CSE in November 2014,to have our shares listed in the Dirsavi Board ,so that we could sell them in the share market, and recoup our long lost monies. The CSE gave their approval on 31-12-2014, but added two riders to their decision, 1) to get a reconfirmation from the CB regarding the granting of a temporary loan to the ailing Finance Company,and 2) the necessity of the Company, to pledge a suitable collateral to the CBSL in order to obtain the said loan.

While rider 2 was almost immediately complied with, due to the regime change at the CB post the January 8th Presidential Election, Rider 1 could not be effectively implemented as it came under a fresh review by the CB. This procedure took a lot of time and finally on 18th September 2015,we were informed that the CB had agreed to grant the much needed loan.This opened the door for further dialogues with the CSE, regarding the long awaited listing of our shares,with the company obtaining the services of a listing agent to act as intermediary in the matter.

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