Repayment Hitch

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. 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.

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