Opposition Warning

Sept 06, 2013 (LBO) – Sri Lanka’s main opposition has warned that several finance companies are taking public deposits without meeting minimum statutory requirements, saying action was needed prevent disasters. “It is well known to the regulators and financial analysts that several finance companies who are still taking public deposits are on the verge of collapse and unable to meet even the minimum statutory requirements,” opposition legislator Harsha de Silva said in a statement.

“To avoid a run on finance companies we will not name the rotten ones right away but urge the authorities to immediately take steps to inform the public of the true situation with respect to some of these insolvent companies masquerading as strong financial institutions.

“This must be done in a methodical manner without causing panic but in a way that the depositors can withdraw their money on demand.”

De Silva said rating agencies have withdrawn ratings and said the opposition may reveal the status of individual companies if the information was not made public by the regulators.