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No Bail

March 11, 2009 (LBO) - Sri Lanka's Ceylinco group chairman Lalith Kotelawala remained in remand over fraud charges at an unlisted subsidiary that has collapsed with a court Wednesday also ordering a halt to any sale of the firm's assets.
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The Ceylinco group has put on sale several of its subsidiaries and properties to raise funds to repay depositors of Golden Key which collapsed late last year.
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The magistrate of the Mount Lavinia court, south of Colombo, refused to consider the application for bail by Kotelawala on the grounds that it was under consideration in a high court case that was continuing.
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But the magistrate denied the bail applications of others in remand over alleged fraud at Golden Key Credit Card Company, an unlisted Ceylinco subsidiary.

The magistrate also ordered a report on Kotelawala's health condition from the judicial medical officer on March 26, the next court hearing.

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Kotelawala, one of the island's most prominent businessmen, has been moved to the prison hospital.

The magistrate also ordered that sales of assets in Golden Key Credit Card Company and its subsidiaries be halted forthwith.



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