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Sat, 25 October 2014 01:49:18
Sri Lanka Ceylinco Shriram repayment hits snag: report
18 Oct, 2009 08:09:00
Oct 18, 2009 (LBO) - A repayment plan proposed for Ceylinco Shriram Capital Management Services, a unit of Sri Lanka's troubled Ceylinco group has been rejected by customers who put money in the company, a media report said.
The Sunday Times newspaper said Colombo's Fort area magistrate court was told by lawyers for depositors the proposed settlement discussed a settlement amounting to 3.0 billion when a total of 6.8 billion rupees was involved.

The lawyer for customers had told court that most of the assets indicated in the repayment plan were also mortgaged, newspaper said.

The head office building of the company in the plush R A de Mel Mawatha in Colombo was under 'parate execution' or foreclosure proceeding by a bank.

A firm called Wealth Lanka, a consultancy had prepared a repayment plan in which 4.0 billion worth of assets had been considered, on information provided by directors.

The report said Sri Lanka's Central Bank which is the banking regulator, has been directed to conduct an independent audit.

The Sunday Times quoted the government's deputy solicitor general Wasantha Navarathna Bandara as saying that a meeting was planned with the state attorney general and the Central Bank.

In the case, Ceylinco group chief Lalith Kotelawala, directors Padmini Karunanayake, Hiran de Silva and Rajiva Wijetuge have been remanded. Sanka Wijesinghe, Ajith Gunawardene , Ruwan Sirisena, Nihal Peiris and Daniel Jegasothy are on bail.

A number of Ceylinco financial firms ran into liquidity problems after Golden Key Credit Card Company, an unregulated firm, collapsed after promising high interest rates.

In Sri Lanka's Supreme Court where the case relating to Golden Key is being heard, 259 million rupees of deposits of Kotelawala's wife Sicille were ordered to be seized Tuesday.

Sicille Kotelawala, a Ceylinco director, has fled abroad to avoid arrest. The newspaper citing attorney general's department said she was suspected to be in Singapore, Australia or Cyprus.

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