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Depositors have expressed dismay over the unsatisfactory manner in which the Central Bank of Sri Lanka acts with regard to the restructure of the Pramuka Bank.

Palitha Gamage, President of the Pramuka Bank Depositors' Association, said depositors are unhappy at the manner in which the Central Bank was acting, even in the face of a solemn undertaking given to the Supreme Court that the Monetary Board would abide by and properly implement the Order of the Appeal Court, based on its finding that the Monetary Board had decided to liquidate Pramuka without even properly considering restructuring options.

He said that the Association instructed their Registered Attorney at Law to write to each member of the Monetary Board, each of whom is bound and required to properly give effect to the Court Order.

The letter dated August 30, 2003 addressed to A.S. Jayawardena (Chairman, Monetary Board & Governor, Central Bank), Charitha Ratwatte, C. Chanmugam, Deva Rodrigo, and Tilak de Zoysa - all Members of the Monetary Board, by Samanthi Kumarasinghe, Attorney at Law reads as follows:

"As you are aware, the Court of Appeal in its judgement dated 2nd July 2003, held that the Monetary Board of Sri Lanka had arrived at its decision to liquidate PSDB without properly considering the options other than its liquidation, and while quashing the decision to liquidate PSDB, directed the Monetary Board of which each of you is a member, by a writ of Mandamus to properly consider the same.

Subsequently, the Appeal preferred by the Monetary Board to the Supreme Court, was dismissed, on the basis of the application made on your behalf to withdraw the same with an undertaking to Court that the Monetary Board would comply with the Court of Appeal judgement.

You also informed the Supreme Court that the steps taken in this regard (restructuring of PSDB) would be in consultation with inter alia the representative of the depositors, K. C. Vignarajah.

All steps to restructure PSDB should be taken in consultation with Mr. Vignarajah, so as to ensure that the depositors' and creditors' interests would be properly protected. I am instructed that even the depositors themselves have sought to make a further proposal to restructure the bank, given that they are the direct victims of any liquidation of PSDB.

In this regard, Mr. Vignarajah (on behalf of the depositors) has been persistently imploring the Central Bank to furnish essential particulars, so that even the depositors themselves may accordingly work out the particulars of a restructuring formula.

I am instructed that this being the case, even Mr. Vignaraja (whom you are required to work in consultation with as per the Supreme Court Order of 4th August 2003) has not been furnished with the required particulars, despite repeated requests for the same.

I am instructed that what has been furnished is grossly inadequate to draft any further proposal," the letter said.

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