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By Channa Kasturisinghe

Depositors and employees of the liquidated Pramuka Bank have called upon the Central Bank of Sri Lanka (CBSL) to allow the resumption of the bank's operations with the intervention of a private sector investor.

Amidst reports of a depositor committing suicide early this week, the Pramuka Bank Depositors' Association has stressed the importance of an immediate decision by the CBSL in the interest of the depositors. It has been revealed that Rs.3.2 billion has been deposited in 15,000 accounts in the Pramuka Bank.

The Association's President Palitha Gamage told the Daily News that the depositors and employees of the bank prefer the resumption of the Bank's operations than a final settlement of depositors' money by the Central Bank, which would take a long time. President of the Bank's Employees' Union, Sunimal Dabare said that the bank's crisis was not only due to mismanagement but also due to a total regulatory failure on the part of the CBSL and therefore the latter has a responsibility to safeguard the interests of the employees and the depositors. "What the Central Bank should do is to let the bank operate under a new management.

There are enough private sector institutions who are willing to invest to resume the operation of the bank," Dabare said.

Janashakthi Group which has a 13.5% stake in Pramuka had earlier expressed its willingness to support the revival of the bank.

It has already written to the CBSL requesting certain information with regard to the financial situation of the bank. Janashakthi's proposal has been supported by its stakeholders.

However, CBSL, Deputy Governor, W.A Wijewardena said that he was not aware of any arrangement to allow Janashakthi to operate the bank and refused to comment on the issue. The relevant officials of the CBSL were not available for comment.

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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