Depositors of the collapsed Pramuka Savings & Development Bank are likely to get a third of their money back once the liquidation process starts to roll in.
Smalltime depositors who had invested up to Rs. 50,000 are likely to get most of their capital back. But for others who invested millions, their capital is likely to be repaid on a pro-rata basis.rn
rnIronically, the biggest depositors of Pramuka are semi-government institutions and rural co-operative banks. Together these institutions are said to account for more than half the deposits.rn
rnThe Western Province Road Development Authority is said to have put in more than Rs 450 mn into the bank while the Public Trustee Department is believed to have deposited about Rs. 120 mn.rn
rnA number of co-operative banks have also put in about another Rs. 100 mn. A Womens Development Fund in Hambantota had deposited about Rs. 50 mn.rn
rnControversy also surrounds the alleged methods used to attract these deposits to the bank.rn
rnThe Bribery Commis