Bank owed Rs.17 b

By Chandani Kirinde

The Yashoda Group of companies is the biggest defaulter of loan payments to the People's Bank with its balance outstanding debt standing at Rs. 3,039 million, according to a document given to Parliament last week.

This company is followed by Good Fellows (Pvt) Ltd., which owes the bank Rs. 621.14 million, Rican Lanka (Pvt) Ltd with Rs. 471. 96 million and S.A.B.Group/Hing-urana Sugar Indus-tries with Rs. 317.91 million. Deputy Finance Minister Ranjith Siyambala-pitiya tabled the document in response to an question raised by JVP Matara district MP Jinadasa Kitulgoda on Thursday and told the House that the total amount of defaulted loan payments by private companies and institutions to the bank stands at over Rs. 17.8 billion.

However, he refused to read out the name of the defaulting institutions saying that the bank has a policy of respecting the privacy of customers and is bound by secrecy clauses in the Banking Act.

The others in debt of over Rs. 50 million to the bank as at December 31, 2008 include Onril (Pvt) Ltd with Rs. 262.63 million, United Spinning and Weaving Mills Ltd., with Rs. 214.26 million, Young in Lanka (Pvt) Ltd., with Rs. 180.03 million, Colombo Commercial Company Ltd., with Rs. 140.57 million, Prabodha Group with Rs. 134.48 million, Rathna Enterprises (Pvt) Ltd., with Rs.105.96 million, Srimic Sea Food (Pvt) Ltd., with Rs 102.18 million, Vanik Corporation (Pvt) Ltd., with Rs. 87.23 million, Lanka Queen International (Pvt) Ltd., with Rs. 77.17 million, Korea Ceylon (Pvt) Ltd., with Rs. 69.84 million and Perfect Fit International (Pvt) Ltd., with Rs. 57.86 million.

Legal action has been instituted against all defaulters and cases are pending.

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