ETI Finance to pay 20-pct of deposit liabilities from USD75mn sale proceeds

May 21, 2018 (LBO) – Monetary Board of the Central Bank has decided to permit ETI Finance (ETIFL) to sell its share holding in subsidiaries and investment properties, for a net amount of 75 million US dollars subject to applicable laws.

The Central Bank said the decision has been made based on a proposal submitted by the Board of Directors of ETI Finance and having considered the critical financial condition of the company and the possible implications to the financial system.

“Out of 75 million dollars, the buyer has transferred 32 million dollars and ETIFL has received its Sri Lankan Rupee value of 5,017.6 million rupees,” the Central Bank said.

“Having considered the request of the depositors, ETIFL has been instructed to pay urgently, 10 percent of deposit liabilities which amount to approximately 3,350 million and the accrued interests of 1,400 million as at end May 2018 using the sales proceeds received.”

Monetary Board of the Central Bank said the payments for initial 10 percent of deposit liabilities will commence on 05.06.2018.

“ETIFL has been instructed to pay a further 10 percent of deposit liabilities on receipt of the balance part of the sale proceeds (USD 43 million),” the Central Bank said.

The details of the payment plan commencing on 05.06.2018 will be informed to depositors by ETIFL shortly.

“The CBSL, while thanking all relevant parties for their assistance extended during the past four months, wishes to request all depositors to be patient until the finalization of the action plan with regard to ETIFL and to cooperate with the Central Bank appointed management panel of ETIFL to implement the payment plan.”