A management council – with the blessings of the Central Bank -- is being set up under a subsidiary of a state financial institution to take over the functions of the Finance & Guarantee Co Ltd (F&G), the Finance & Guarantee Real Estate Co Ltd and Finance & Guarantee Developers – all part of the crisis-hit Ceylinco Group.
This council will work out a plan and a package of payment for depositors and investors of the three companies within two weeks, a senior F&G official told The Sunday Times FT. Repayment of the depositors money will be guaranteed by this council with the F&G official urging depositors/investors to be patient as the issue has risen not due to any fraud but not getting returns on the investments and from the day – today business.
The new scheme will be published in the newspapers and all these activities will be conducted in a transparent manner with depositors being be notified as soon as possible. He disclosed that two of the companies (apart from the last named) have applied for a licence from the Central Bank. On Wednesday, at least 100 F&G depositors stormed its office at Duplication Road, Colombo 3 demanding the repayment of their deposits, with some angry depositors smashing glass panels of doors. Several depositors told The Sunday Times FT that they had visited the F&G office on several times to collect their interest payment but the company staff had asked them to come back on another date.
At a meeting held at F&G’s board room, the Director/General Manager of F&G Real Estate Chalaka Perera explained that the company is facing a financial crisis at present as they are not getting returns from their investments and from their day – today business which involves leasing and property development and other financial services. F&G's total deposit base is around Rs.3 billion. He promised the depositors that they would be informed soon on the date and time of repayments.
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