Six finance companies fell since 2015 – State Minister

Six financial institutions had fallen into crisis since the previous Good Governance government came into power till August 31,2020.

They are Central Investments and Finance Ltd (formerly Central Investments and Finance PLC Ltd), The Standard Credit Finance Ltd, TKS Finance Ltd, The Finance Company PLC, ETI Finance Ltd and Swarnamahal Financial Services PLC, Money and Capital Market and State Enterprise Reforms State Minister Ajith Nivad Cabraal told Parliament yesterday.

Responding to a question posed by SJB MP Hesha Withanage, he said there were 41 Registered Finance Companies. Cabraal tabled details of these companies.

Responding to the question of the number of depositors who maintained deposits in each financial institution he said, Central Investments and Finance Ltd (formerly Central Investments and Finance PLC Ltd) 20,161, the total deposits amounting to Rs. 3,965 million, The Standard Credit Finance Ltd, 6,600 depositors and a total of Rs. 2,721 million, TKS Finance Ltd, total depositors 35,184 and a total of Rs. 2,691 million, The Finance Company PLC, 147,152 depositors with a total of Rs. 27,400 million, ETI Finance Ltd with 37,586 depositors and a total of Rs.22,648 and Swarnamahal Financial Services PLC. 9,623 depositors with an investment of Rs. 2,372 million.

In response to the question on the measures that have been taken and will be taken to do justice to the depositors of the aforesaid financial institutions, State Minister Cabral said, he would table a detailed report on the relevant measures taken with regard to each of these institutions. He also added that these details had been notified to the Cabinet on October 29, 2020.

MP Hesha Withanage said that the country is facing a huge crisis with the fall of these financial institutions. He added that apart from these financial institutions, the average poor man deposits his hard earned savings at Samurdhi Banks spread across the country, claiming that the government had recently utilised these funds from these deposits for various projects. He alleged that these accounts are now empty and questioned the government as to what steps have been taken to put back the monies from these accounts and when that would happen.

In response, State Minister Cabraal refuting Withanage’s allegations said Samurdhi Banks are not regulated by the Central Bank. “Samurdhi Banks are regulated under a separate Act, but if you require, I could present to you these details at a later date,” he said.

(Source: Daily News – By Sandasen Marasinghe, Camelia Nathaniel and Amali Mallawarachchi)