CB gives one month ultimatum to register

Lumbini EDIRISINGHE

One financial institution has responded positively subsequent to the Central Bank warning to register with them in the aftermath of the Savkithi scam.

Governor Central Bank Ajith Cabraal said subsequent to the Sakvithi scam, the CB had named six institutions to be financially unstable.

These are Okadana Finance, Sakvithi, Piyadasa Ratnayake, Nadini Finance, D. K. Udayasiri and Sriyavi Homes.

He said a 30-day notice was given to them to register with the Central Bank and upto now only one financial institution has responded positively.

The deadline for registering with the Central Bank was one month and institutions failing to fall in line will have to face litigation.

He said the public too should have been more vigilant as the Central Bank had published the list of all registered financial companies in the media almost every month.

“The CB has spent Rs. 4.4 billion to place advertisements in all national newspapers to educate the public up to date,” he said.

Deputy Governor Central Bank Dr. Ranee Jayamaha said people, in addition to earning high interest had also invested in these financial institutions to evade income tax.

“These financial institutions do not give out records to Government institutions such as Inland Revenue, Central Bank and other revenue collection agencies,” he said.