Liquidation Status

Jan 23, 2010 (LBO) – Sri Lanka’s central banks says depositors of several failed financial firms are being settled according to court directions and others could be settled with Treasury bills when assets are identified. (ii) Finance and Guarantee Property Development Company (Pvt.) Ltd. and F&G Real Estate Company Ltd: The Court has directed the establishment of a Trust for each of the above entities to vest assets belonging to the respective company for the purpose of settlement of dues to investors of those companies.

(iii) Companies in the Shriram Group: A repayment plan submitted by the directors of the company is presently being considered in the Supreme Court. The implementation of the repayment plan has already been recommended by the Central Bank, subject to certain amendments.

(iv) Sakvithi House Construction (Pvt.) Ltd: Investigations are in progress to identify the assets of the company. Once the assets are identified, action will follow. Critics have said most people were driven towards unregulated institutions due to loose monetary policies from 2004 to 2007.

But investors in several unregulated firms also did not pay taxes like other law abiding citizens who deposited in regulated firms