Central Bank appoints expert group

To handle problems of financial companies in difficulties:

Ramani Kangaraarachchi

The Central Bank has appointed an expert group to handle the problems of financial companies in difficulties as a measure to address the growing tension situation of the public due to the acts of unauthorized financial companies.

Governor, Central Bank, Ajith Nivaard Cabraal addressing the media at the Central Bank Conference Hall yesterday said that the expert group includes Chartered Accountant Nishantha Fernando Former Exchange Commissioner Rakitha Wickramanayake, President, Association of Accounting Technicians, Hennayaka Bandara and Deputy Chairman Browns Group Ajith Devasurendra. Cabraal said that the problem in Sri Lanka is an internal one as a result of the acts of unauthorized financial companies such as Golden Key but not because of the global crisis. He said that when the Seylan Bank had problems the Government took prompt action and settled the matter.

The Cental Bank of Sri Lanka has stepped in to deal with the problems and reduce the potential risk, he said.

The government has also approved Rs. 4.2 million as a stimulus package to overcome the difficulties faced by the banks.

Meanwhile, the Lanka Puthra Development Bank will become the agent for Ceylinco Investment and Asian Finance and Peoples Leasing will buy the shares of Seylan Merchant Leasing. The Central Bank has appointed Guy de Silva as the Central Bank agent for The Finance Company. Governor Cabraal said that the higher management of The Finance Company has agreed to accept a deep pay cut and to forgo other incentives and the trade unions have agreed to give their fullest support to solve the problem.