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Pramuka depositors file writ application against Central Bank

Several depositors aggrieved by the decision of the Central Bank's Monetary Board to cancel the banking licence of Pramuka (a Licensed Specialised Bank) have filed a writ application in the Court of Appeal on 16th January 2003, seeking that the Appeal Court quash and declare invalid, the cancellation, made without resorting to the proper steps provided for by the Banking Act to protect the interests of depositors and creditors of the bank.

The petition is to be supported early next week in the Appeal Court by M. A. Sumanthiran (Senior Counsel) with Mrs. P. S. Bandaranayake and Rasika Balasuriya, instructed by Ms. Samanthi Kumarasinghe.

The 1st-4th Respondents in this writ application (bearing No. CA 65/2003) are: the Monetary Board of the Central Bank of Sri Lanka, A. S. Jayawardena, Governor, Central Bank of Sri Lanka, P. M. Nagahawatte, Deputy Governor, Central Bank of Sri Lanka and Mrs. P. P. Sirisena, Director of Banking Supervision, Central Bank of Sri Lanka. Pramuka Savings And Development Bank has also been cited as the 5th respondent for purposes of issuing notice of the application.

The Petitioners state in their petition, that they are all people who have placed deposits with the Pramuka Bank (5th Respondent) and thus at all relevant times had a legitimate interest in the proper functioning of Pramuka, which is to be achieved by the legal provisions for control and supervision by the Central Bank.

The petition states that Pramuka Savings And Development Bank Ltd. was incorporated under the Companies Act in or around January 1997 with the primary object of establishing a licensed specialised bank under the Banking Act.

It also states that a licence under the Banking Act was issued by the Monetary Board to Pramuka Bank on 17th July 1997 after C. Rohan S. Perera was required to resign from the posts of Chairman and Director of the 5th Respondent.

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