Central Bank to manage two crisis-hit EAP finance companies

2 January 2018 - 538   - 1


The Central Bank (CB) has stepped in to temporarily take over the affairs of two crisis-hit finance companies - ETI Finance Ltd and Swarnamahal Financial Services PLC.
In decisions taken on January 1 at a meeting of the CB’s Monetary Board, the CB is to appoint a panel to manage the affairs of both companies; restrict the withdrawal of maturing deposits and renew such deposits for a period of six months; and pay interest due for deposits as per agreed terms and conditions.
These steps, which are effective immediately, were taken considering the “weak financial performances” of the two companies and “to safeguard the interests of the depositors and other creditors of the two companies, and to ensure safety and soundness of the financial system”.
The CB statement to the media also said that the companies can finalize the negotiations with the prospective investors which the CB will facilitate.
“Depositors of the above two companies are further informed that the Central Bank is taking further measures and closely monitoring the operations of the companies to protect the rights of the depositors and therefore, the depositors are kindly requested to cooperate with the Central Bank in its effort to ensure the stability of the two companies. The depositors may contact the Department of supervision on Non-Bank Financial Institutions of the Central Bank,” it said.
The two companies have been struggling for a while. The Sunday Times on December 31 reported that the CB has asked the Bank of Ceylon to be the managing agent for these (two) financial arms of the EAP Group.
The report said the other businesses of EAP Holdings–including its broadcast and media arms are up for sale adding that a Malaysian businessman negotiating on behalf of a Singaporean company to buy EAP Group businesses was detained with three others at the Bandaranaike International Airport (BIA) last month while attempting to smuggle out foreign currency. – ENDS -

  Comments - 1

  • Thilanka Sunday, 7 January 2018 07:27 PM

    When CBSL understands the importance of strict regulations of this kind of financial institutions, they are playing with customers money, some of them grant loans with unbelievable rates of 60% or more. Especially in microfinance and pawning fields, they suck up to final blood drop from the poorest people. CBSL always follows Commercial Banks, they act as blinds on these kinds of Finance and Leasing Companies

    Reply : 0       0

    Leave a comment

Top Stories

CID nets female accountant for Rs.20 million fraud

A female accountant of a bank in Gampaha, who is accused of defrauding over Rs.20 million, has been arrested by the Criminal Investigation Departme...

20 April 2018 - Views : 65

Nuwara Eliya Flower Show declared open

20 April 2018

World's largest aircraft leaves Mattala

20 April 2018

Namal Rajapaksa sponsors rugby workshop in Jammu and Kashmir

20 April 2018



Features & Analysis

Ministry of Crab pop up event in UK

Chef Dharshan Munidasa will return to the U.K. for a three-day Ministry of Crab Pop Up Event from  April 19 -21....

Miss Premier Ceylon with Miss England to get under way in May

Premier Ceylon, the hotels and hospitality company which has its corporate head office based in Virginia, USA, is rea...

Indian YouTube singer has tearful reunion after 40 years

An Indian man missing for 40 years has had an emotional reunion with his family after a YouTube video of him singing ...

Evening of instrumental music by Soundari David Rodrigo and ensemble

Indian Cultural Centre, Colombo will be organizing an evening of instrumental music “Celebrating Maestro Illaya...