Ticking Away

August 21, 2006 (LBO) — Depositors who have money and other assets in Sri Lanka’s bank have till the end of the month to reactivate their accounts, and prevent accounts being reported to the central bank has abandoned property, officials said. Parliamentarians representing the community in particular have raised objections to the takeover process. Bankers say to reactivate an account it is not necessary to deposit money, even an account balance inquiry or an updating of the passbook would be enough.

Sri Lanka’s central bank, which invoked provisions in the Banking Act to takeover property of accounts that have remained dormant over 10 years have said repeatedly that it is not a permanent seizure of assets.

But the decision to take-over dormant assets has drawn protests especially from depositors who have been abroad for a long time.

Not Permanent

Central Bank says these assets can be reclaimed and it is not a permanent seizure.

Several types of
property get caught in the takeover

In addition to accounts, banks also have thousands of saf

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