Golden Key

Mar 26, 2009 (LBO) – Sri Lanka’s Ceylinco group chief Lalith Kotelawala has offered to provide assets into a trust to repay 14.5 billion rupees to customers of the collapsed Golden Key Credit Card Company, state lawyers told court. Deputy solicitor general Sarath Jayamanne said Thursday depositors were offered a rate lower than the high rates of around 30 percent promised by Golden Key in terms of a settlement that is yet to be finalized.

This week state attorneys and lawyers representing defaulted customers were to agree on a repayment plan and present to court which would be settled through a court supervised trust.

State lawyers said the firm appeared to have collected 13 billion rupees from customers from February till December 2008.

The company was said to owe 26 billion rupees to customers with accrued interest.

Magistrate’s court in Mount Lavinia rejected bail for directors of Golden Key and did not consider bail for Kotelawala as the matter was also in a higher court.

In a separate development a group of depositors went to Supreme Court Monday and obtained a court order stopping the sale of assets of Golden Key or Ceylinco Consolidated, a kind of an umbrella company for the group.

But the gro