Freeze Order

Mar 23, 2009 (LBO) – Sri Lanka’s Supreme Court has halted the sale of assets of Ceylinco Consolidated, an apex firm of the Ceylinco group, a collapsed credit card firm and the personal assets of the firm’s directors, lawyers said. Depositors’ lawyers, together with Sri Lanka’s attorney general’s office were due to present a repayment plan for an estimated 26 billion rupees of outstanding deposits of Golden Key.

The magistrate court had earlier prevented assets or Golden Key or its subsidiaries from being sold without the approval of court.

A group of 23 customers of Golden Key Credit Card Company went to court saying the company was operating a finance business that should have been regulated by the Central Bank.

They wanted the Central Bank to investigate the firm and find whether the finance company law, exchange control law, Sri Lanka’s company law or any other law had been violated.

The customers also wanted the assets of the firm liquidated by the central bank.

Granting interim relief, court halted Golden Key, Ceylinco Consolidated or directors Lalith Kotelawala, Khavan Perera, Sicille Kotelawala, Daniel Jegasothy, Padmini Karunanayake, Suramya Karunaratne, Bandula Ranaweera, Niranjan Fernando and Sa