CB on recent media reports regarding Golden Key

The Central Bank has observed that various erroneous reports have appeared in the media recently in relation to the Central Bank’s role regarding the Golden Key Credit Card Co. Ltd which sometimes may distort the true position, a media release from the Bank said.

The Golden Key Credit Card Co Ltd has been in existence and operating its business since 1977. The operations of the Company have been reviewed and investigated at various times by the Monetary Board. However, at no stage has the Monetary Board of the Central Bank of Sri Lanka determined that the company’s operations constitute ‘finance business’ in accordance with the definition of the Finance Companies Act.

The Golden Key Credit Card Company Ltd issue was the subject of several Fundamental Rights (FR) petitions as a result of the Company being unable to meet its obligations since late 2008.

In response to these several FR petitions, the Supreme Court has recently ordered that action be taken by the Monetary Board of the Central Bank of Sri Lanka in accordance with Sections 11, 18 and 25 of the Finance Companies Act. Accordingly, steps are now being taken by the Monetary Board of the Central Bank in compliance with such order.

In that context, any reports that suggest otherwise are incorrect and highly misleading, the release said.