Chairman of the Merchant Bank of Sri Lanka (MBSL) Janaka Ratnayake addresses a media briefing . Pic by M. D. Nissanka |
The Finance Company PLC is back on track after Merchant Bank of Sri Lanka (MBSL) took over as managing agent of the ailing finance company on May 22, 2009. At a recent media briefing, MBSL Chairman Janaka Ratnayake said The Finance was too big to collapse and will not collapse.
The company has Rs. 35 billion in assets and Rs. 25 billion in deposits and is over 60 years old.
Mr. Ratnayake said there has been tremendous progress since May in getting the company back to resuming its day to day activities.
He said the global recession as well as the scams involving Sakvithi and other finance company debacles affected The Finance, leading to a huge demand in withdrawals of funds. He said no bank or financial institution can cope with 10% to 15% demand for withdrawals.
Mr. Ratnanayake added that since MBSL took over the managing duties, the company has collected over Rs.20 million in deposits, given loans and reactivated all of its other units. Key executive of The Finance Tissa Ekanayake said MBSL has put the company on track and put its 60 branch networks back to normalcy. Mr. Ekanayake said practical and timely decisions were implemented after MBSL took over as managing agents. |
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