Seylan back to normal - Minister

Uditha Kumarasinghe, Irangika Range and Sandasen Marasinghe

Minister of Finance and State Revenue Ranjith Siyambalapitiya stated in Parliament yesterday that the banking activities of the Seylan Bank was back to normal owing to the immediate measures taken by the Central Bank to avert a crisis.

The Minister also stated that the Central Bank took immediate steps in terms of the Financial Acts to rescue the Seylan Bank and prevent unstability of the economic system caused by a run on deposits after a crisis in the Ceylinco Group of Companies.

If those sudden moves were not executed nearly 4,000 employees in the bank and a large number of customers would have been left in the lurch following the bankruptcy of the Seylan Bank. The Minister was responding to a special statement made by JVP MP Anura Kumara Dissanayake. The Minister further stated that the Central Bank took immediate control of the Seylan Bank and a new board of directors appointed terminating the service of the previous board.

The CB had also wanted to continue the service of the Seylan Bank with the same employees without any interference and strengthen the trust of the public on the Seylan Bank and the entire banking system.

The Minister also said the facts with regard to the assets and liabilities of the Seylan Bank is reported to the Central Bank monthly. The assets and liabilities of the bank could be forwarded to the House once the audit on the accounts of the bank is completed. According to the reports received so far not much of the deposits have been withdrawn before the Central Bank took over the control of the Seylan Bank.