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| Thursday, 3 July 2003 |
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Pramuka depositors call for immediate action by CBSL By Channa Kasturisinghe The depositors and the stakeholders of the Pramuka Savings and Development Bank called upon the Government, the Central Bank of Sri Lanka (CBSL) and the business community of the country to support the Pramuka reopening. This follows yesterday's Appeal Court judgement quashing the decision by the Monetary Board to cancel the licence of the bank. The Court ruled that it was dissatisfied with the manner in which the Monetary Board had arrived at the decision and directed the CBSL to take alternative measures available in terms of the banking act to safeguard the interests of the depositors. Pramuka Stakeholders Association, President, Palitha Gamage told the Daily News that the association is planning to meet the CBSL Governor, A.S.Jayawardena as soon as he returns from abroad to discuss their restructuring proposal recently presented to the CBSL. "We are also looking at other possibilities such as calling for a credit line from the Government to finance the bank and getting the help of private sector investors," Gamage said. His association along with the Pramuka Depositors Association recently submitted a restructuring proposal nominating a new Board of Directors headed by the past Chairman of the Ceylon National Chamber of Industries K.C. Vignarajah. The two associations called upon the CBSL to take immediate action to safeguard their interests in terms of the Banking Act No. 33 of 1995. Their main proposals was to convert the deposits and borrowings into equity for the purpose of infusing new capital to the Bank and to uplift the deposits and borrowings subject to an agreed limit within six months of reopening the bank. "The depositors had to wait for a long time for a decision in their favour in this matter. Now that we have achieved it we want the Central Bank to quickly respond to our calls," Gamage said. However, the repeated attempts by the Daily News to contact the two Deputy Governors of the CBSL for their comments on the matter in the absence of the Governor were not successful. Janashakthi Capital Ltd., which is a shareholder of Pramuka too came up with a restructuring proposal for the Bank. The Company's Director Ramesh Shchafter said that he is encouraged by the Court's decision to go ahead with its restructuring proposal with the assistance of the Central Bank. The Pramuka Bank Employees Union's President Sunimal Dabare said that the Court's decision would also relieve the employees of the bank and called upon the Central Bank to take immediate measures to reopen Pramuka. |
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