COLOMBO, July 12, 2006 (AFP) – Sri Lanka announced Wednesday it would seize an estimated 30 million dollars in dormant bank accounts as part of a drive to clean up commercial bank books.
Monetary authorities will use a provision under the Banking Act relating to “abandoned property” to access the dormant funds, Upali de Silva, Secretary General of the Sri Lanka Banks’ Association, said.
The association published a notice Wednesday warning people to re-activate accounts dormant for over 10 years or risk the money being transferred to the Central Bank.
“There are several billion rupees worth of unclaimed property and goods waiting to be claimed,” de Silva told AFP.
Customers have until the end of August to re-activate bank accounts, the association said.
Rightful owners can still claim their money at a later date but will be forced to follow a lengthy legal process.