Technical Point

Kris Canekeratne at LBR LBO Tech Conference

Lawyers for Pramuka depositors argued before the Court of Appeal that the Monetary Board had no authority to liquidate Pramuka Bank.
The petitioners argued that the Monetary Board ceased to exist after certain amendments were made to the Monetary Law Act.rn

rnThe depositors legal counsel argued that according to the changes, a five member monetary board had to be appointed with the approval of the constitutional council.rn

rnThe existing three-member board it claimed ceased to exist and there were no transitional provisions to keep the previous board in office.rn

rnThe petitioners also argued that certain sections giving liquidation powers to the Central Bank had been rushed through Parliament without giving adequate opportunity for public comment.rn

rnThe next hearing will be on March 17.rn

rnIn another development, the Depositors Association is protesting against the current practice of paying salaries to the senior management.rn

rnThey say depositors money should not be used to pay senio