Via E mail: SLSB (Pramuka) targets Rs. 300 m in 6 months

The privately owned Pramuka Savings Bank was closed down on a sudden decision taken over five years ago depriving many depositors of their life long belongings.

With the directors of the bank going missing, the depositors had no option other than to make an appeal to successive governments requesting to intervene and subsequently it was President Mahinda Rajapaksa as the Finance Minister came to the rescue of the depositors and giving them a sigh of relief by giving them a chance to withdraw their investments.

In order to fulfill the task the Sri Lanka Savings Bank (SLSB) was established last week at D. S. Senanayake Mawatha. General Manager Sarath Weerathunga elaborates plans of the bank that reborn, via email.

Q: How is the bank constituted?

A: Sri Lanka Savings Bank is a fully State owned savings bank registered by Companies Act. No. 17 of 1982 and vested with the business Pramuka Savings and Development Bank ltd, under a parliamentary act. The Government appointed the Chairman and the Board of Directors. It is a distinct legal corporate entity with a separate authorised capital and clear objective.

The Pramuka Bank was not liquidated. ‘Pramuka’ ceased to operate by order of the Central Bank of Sri Lanka and its assets and liabilities were vested with Sri Lanka Savings Bank Ltd, subsequently. The SLSB was incorporated to fulfill a promise given by President Mahinda Rajapaksa to the depositors of the defaulted Pramuka Bank to provide relief.

Q: What are the future plans of SLSB?

A: We hope to launch a house-to-house campaign to woo more customers especially in under-banked areas. We are also focusing on the low-income earning groups such as small time traders, rural farmers and the SME sector. The Bank hopes to link with cooperative movement and religious organisations.

Q: In six months time where would the bank be?

A: We hope to have a deposit base of over Rs. 300 million and also provide credit for office workers.

Q: What are the steps SLSB will take to protect the depositors?

A: We will follow guideline laid by the Central Bank and maintain a separate section to deal with depositors.

5. What are the deposit instruments SLSB will introduce initially?

Buhuti (children’s savings), Manawi (ladies savings), Sandewa (senior citizen savings), and normal savings with high interests for some of the new instruments.

In addition fixed deposit for senior citizens, and normal fixed deposits where interest is paid monthly or at the maturity. In addition to the attractive advantages, the SLSB has undoubtedly is the letter of comfort from the Government for Rs. one billion.

6. How can you describe the comparative advantages SLSB hold in Sri Lanka?

A: In regard to comparative advantage we are offering higher rate of interest and also tie up with the co-operative movement. Prime location and accessible office is another advantage. Close relationship with the Ministry of Finance and Planning and the Central Bank of Sri Lanka too is considered as a plus point to the bank. Former Pramuka customers too will rely on the State owned bank for deposits.