Bitter Battles

Depositors of the failed Pramuka Bank have demanded Rs. 6 bn in damages from its regulator, Sri Lanka’s Central Bank. Depositors of the failed Pramuka Bank have demanded Rs. 6 bn in damages from its regulator, Sri Lanka’s Central Bank. “We sent out letters of demand to the Monetary Board asking for damages up to Rs. 6 bn on Friday,” said President, Pramuka Depositors Association, Palitha Gamage.

The letter claims damages from the monetary authorities for alleged inaction and subsequent wrongful actions.

The Attorney General was also notified of action to be instituted for the recovery of damages, if compensation amounting to Rs. 6 bn is not paid to the depositors.

The depositors claim the Central Bank failed to act in time, when the Bank Supervision Department of the Central Bank found serious violations of the provisions of the Banking Act, as far back as July 1999.

It was only in October 2002, say the depositors, that the Monetary Board suspended Pramuka Bank that was listed as a licensed, deposit taking institution, regulated by the Central Bank up to September 2002.

Depositors say they are p