Financial Times

Some directors of Ceylinco Shriram Capital Management remanded


Fort Magistrate Gihan Pilapitiya this week further remanded Ceylinco Chief Lalith Kotelawala Deputy Chairman Padmini Karunanayake, Daniel Jegasothy and placed two other directors of Ceylinco Shriram Capital Management Services Hiran De Silva, also CEO, and Rajeeva Wijetunge on remand till July 29 in connection with alleged criminal breach of trust and cheating of Rs. 7 billion belonging to depositors.
Magistrate Pilapitiya also imposed a Rs. 100,000 surety bail with a public servant as surety in addition to the earlier bail of Rs. 5 million surety bail with two sureties on five other directors, Ajith Gunawardane, Sanka Wijesinghe, Ruwan Sirisena, Nihal Peiris and K. A Jayatissa.

Depositors allege Ceylinco Shriram Capital Management Services Ltd and CLC Asset Management Services Ltd have made several bad investments utilizing depositors’ money although they have made a public announcement stating that they are investing 45 % of the money in Treasury bills and the balance in Money market, Inter corporate Commercial Paper, Asset backed securities and Call Money Accounts.
Depositors allege that they have documentary proof to show that these two companies had given a Rs. 75 million loan to a domestic airline to purchase two planes without any surety and without a no due diligence.

Another loan of Rs. 409 million was given to Ceycom Ltd, a subsidiary of Golden Key Credit Card Co. This company is not operating at present. The CID has been informed to conduct investigations in to these financial transactions.

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