Pramuka’s liquidation process took another twist on Thu. when Court asked monetary authorities to make a ‘honest’ attempt to revive the bank. Pramuka’s liquidation process took another twist on Thu. when Court asked monetary authorities to make a ‘honest’ attempt to revive the bank. Justice P Wijeratne said that there is no point in liquidating the bank, as previous attempts were rushed to cover up various short comings.
Pramuka Depositors Association lawyers will now meet the Attorney General’s Dept to work out a restructuring plan, before court meets on Dec. 7
Pramuka Bank collapsed in 2002 under a mountain of bad loans, but its liquidation was held up after depositors went to Court demanding that the Central Bank consider all options before winding it up.
However, on Aug. 3, the Central Bank opted to liquidate Pramuka after nearly two years of scouting for potential investors to revive the failed bank.
The depositors allege that Central Bank did not follow proper procedures, which included consulting K C Vignarajah (a representative of the depositors), before opting for liquidation.
The Petitioner also states tha