Bank Bugs

Pramuka Depositors Association has sought legal redress to cancel the liquidation process and said that they would seek damages from key officials. Pramuka Depositors Association has sought legal redress to cancel the liquidation process and said that they would seek damages from key officials. Filing a petition with the Court of Appeal on Monday, the President of the Association Palitha Gamage said the Monetary Board and Central Bank’s Banking Supervision Dept. have failed to restructure Pramuka Savings & Development Bank.

Pramuka Bank collapsed in 2002 under a mountain of bad loans, but its liquidation was held up after depositors went to Court demanding that the Central Bank consider all options before winding it up.

However, on Aug. 3, the Central Bank opted to liquidate Pramuka after nearly two years of scouting for potential investors to revive the failed bank.

The depositors allege that Central Bank did not follow proper procedures, which included consulting K C Vignarajah (a representative of the depositors), before opting for liquidation.

The association has also filed an ‘affidavit in opposition’, to oppose the liquidati