Financial Times

Decision on Pramuka by July 22
By Quintus Perera
Less than a month before a court ruling takes effect, the fate of Pramuka Bank lies in the hands of the Central Bank and Asia Capital's effort to secure the support of all depositors to revive the failed bank.

Under an earlier Appeal Court order, the license of the Pramuka Bank would be cancelled by July 22 unless it is not re-opened before or by that date. A spokesman for Asia Capital, which is putting together a scheme to revive the bank, said the majority of the depositors have given their consent to the plan. The Central Bank has agreed to extend by another month to July 15 the last day for obtaining the consent of depositors, the spokesman said.

Central Bank officials however kept mum or declined to comment on the status of Pramuka despite several calls to the bank. The Central Bank has repeatedly criticized the media in the past for not seeking its comments on the Pramuka bank issue but in many cases their officials are unavailable or unwilling to comment when reached by reporters.

K C Vignarajah, Chairman of the Pramuka Restructuring Committee - recognised by the Appeal Court - said under the negotiated deal with Asia Capital those who have deposited up to Rs 50,000 would be paid their dues within six months and those who have deposited Rs 100,000, their dues within a year.

Palitha Gamage, President, Pramuka Depositors Association said together with Asia Capital they have obtained the consent of over 10,000 of the 15,200 depositors on the restructuring proposal.

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