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Monday June 3rd, 2024

Sri Lanka failed finance company depositors to Rs9.8bn extra after insurance increased

ECONOMYNEXT – Depositors of failed Sri Lanka finance companies will get 9.8 billion rupee more with the ceiling on deposits qualified for insurance being raised by half a million rupees per person, the central bank said.

Compensation from the Sri Lanka Deposit Insurance and Liquidity Support Scheme (SLDILSS), run by the Central Bank of Sri Lanka (CBSL) had been raised to 1.1 million rupees from an earlier 600,000 rupees.

“This decision has been taken to provide further relief to the depositors of financial institutions regulated by CBSL in the event of a cancellation or suspension of the licences of such institutions,” the Central Bank said.

“The Resolution and Enforcement Department of CBSL is currently taking necessary measures to commence the payment of additional compensation expeditiously.

“The payment mechanism and the date of commencement of payments under the increased compensation threshold will be notified by CBSL in due course.”

Depositors of six finance companies whose licenses had been cancelled or suspended are in line to get the higher amount.

Central Investments and Finance PLC (CIFL), The Standard Credit Finance Limited (TSCFL), TKS Finance Limited (TKSFL), The Finance Company PLC (TFC), ETI Finance Limited (ETIFL) and Swarnamahal Financial Services PLC (SFSP) are in resolution processes.

At a ceiling of 600,000 rupees 25.8 billion rupees would be paid to 254,484 depositors. Up to now 21.6 billion rupees would be paid.

Further details in this regard may be obtained from the Resolution and Enforcement Department via telephone numbers 0112477261 and 0112398788, the central bank said.

Up to 9.8 billion rupees extra would be paid to depositors at a ceiling of 1.1 million rupees. As a result 94 percent of depositors would be paid. (Colombo/Mar19/2021)

Comments (2)

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  1. Ivan Maligaspe says:

    What about the rest of the failed Finance companies under the Umbrella of Lalith Kotelawala’s Ceylinco Group e.g THE FINANCE and GUARATEE Company etc., until now nothing has been done to give back the funds of the Depositors, many years have passed, Central Bank is the worse institution in Sri Lanka, they only show but does not implement, the officials are very inefficient and some of them are very corrupt, they boast of recruiting University Graduates with a First class to their management, most of them are rotten good for nothing lot.

  2. K.A.N.P.Kumarathunga says:

    What will be to the rest of deposited money please .

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Your email address will not be published. Required fields are marked *

  1. Ivan Maligaspe says:

    What about the rest of the failed Finance companies under the Umbrella of Lalith Kotelawala’s Ceylinco Group e.g THE FINANCE and GUARATEE Company etc., until now nothing has been done to give back the funds of the Depositors, many years have passed, Central Bank is the worse institution in Sri Lanka, they only show but does not implement, the officials are very inefficient and some of them are very corrupt, they boast of recruiting University Graduates with a First class to their management, most of them are rotten good for nothing lot.

  2. K.A.N.P.Kumarathunga says:

    What will be to the rest of deposited money please .

Water levels rising in Sri Lanka Kalu, Nilwala river basins: Irrigation Department

ECONOMYNEXT – Sri Lanka’s Irrigation Department has issued warnings that water levels in the Kalu and Nilwala river basins are rising and major flooding is possible due to the continuous rain. People living in close proximity are advised to take precautions.

“There is a high possibility of slowly increasing prevailing flood lowline areas of Kiriella, Millaniya, Ingiriya, Horana, Dodangoda, Bulathsinhala, Palinda Nuwara and Madurawala D/S divisions of Ratnapura and Kalutara Districts, up to next 48 hours,” it said issuing a warning.

“In addition, flood situation prevailing at upstream lowline areas of Ratnapura district will further be prevailing with a slight decrease.

“The residents and vehicle drivers running through those area are requested to pay high attention in this regard.

“Disaster Management Authorities are requested to take adequate precautions in this regard.”

The island is in the midst of south western monsoon.

DMC reported that 11,864 people belonging to 3,727 families have been affected due to the weather in Rathnapura, Kegalle, Kilinochchi, Jaffna, Mullaitivu, Kalutara, Gampaha, Colombo, Galle, Matara, Hambantota, Puttalam, Kurunegala, Kandy, Nuwara Eliya, Anuradhapura, Polonnaruwa, Badulla, Moneragala, and Trincomalee districts.

Meanwhile, the Meteorology Department stated that showers are expected on most parts of the island today.(Colombo/June3/2024)

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UNP gen secy defends call for postponing Sri Lanka poll, claims opposition silent

The UNP party headquarters in Pitakotte/EconomyNext

ECONOMYNEXT — United National Party (UNP) General Secretary Palitha Range Bandara has defended his call for postponing Sri Lanka’s presidential election by two years, claiming that his proposal was not undemocratic nor unconstitutional.

Speaking to reporters at the UNP headquarters Monday June 03 morning, Bandara also claimed that neither opposition leader Sajith Premadasa nor National People’s Power (NPP) leader Anura Kumara Dissanayake have spoken against his proposal.

“I have made no statement that’s undemocratic. My statement was in line with provisions of the constitution,” the former UNP parliamentarian said.

He quoted Section 86 of Chapter XIII of the constitution which says: “The President may, subject to the provisions of Article 85, submit to the People by Referendum any matter which in the opinion of the President is of national importance.”

Sections 87.1, 87.2 also elaborates on the matter and describes the parliament’s role, said Bandara.

“I spoke of a referendum and parliament’s duty. Neither of this is antidemocratic or unconstitutional. As per the constitution, priority should be given to ensuring people’s right to life,” he said.

“Some parties may be against what I proposed. They may criticse me. But what I ask them is to come to one position as political parties and make a statement on whether they’re ready to continue the ongoing economic programme,” he added.

Bandara claimed that, though thee has been much criticism of his proposal for a postponement of the presidential election, President Wickremesinghe’s rivals Premadasa and Dissanayake have yet to remark on the matter.

“I suggested that [Premadasa] make this proposal in parliament and for [Dissanayake] to second it. But I don’t see that either Premadasa nor Dissanayake is opposed to it. To date, I have not seen nor heard either of them utter a word against this. I believe they have no objection to my proposal which was made for the betterment of the country,” he said. (Colombo/Jun03/2024)

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300 of 100,000 trees in Colombo considered high risk: state minister

ECONOMYNEXT – Trees in Sri Lanka’s capital Colombo are being monitored by the municipal council, Army and Civil Defense Force as the severe weather conditions continue, State Minister for Defense Premitha Bandara Tennakoon said.

“Within the Colombo Municipal Council city limits, there are 100,000 trees. Of these, around 300 are considered high risk,” Tennakoon told reporters at a media conference to raise awareness about the current disaster management situation.

Not all trees required to be cut down he said. “We can trim some of the branches and retain them.”

The problem was that buildings in the vicinity of the tree had cut branches on one side, causing it to become unbalanced, the minister said.

New laws would be brought in so provincial/municipal institutions could strengthen enforcement of building codes.

“We don’t have a single institution that can issue a warning about a tree. Not one to tell us what trees can or cannot be planted near a road.

“Trees should be suitable for the area. Some trees have roots that spread and damage roads, buildings. When the roots can’t go deep, they tend to topple over.

“Now Environment Day is coming up, and anyone can go plant a tree by the road. We have to take a decision about this. We have to enforce laws strongly in future.” (Colombo/June3/2024)

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