News

Illegal bank in Dambulla ignores CB warning

By Leon Berenger

The Central Bank has ordered an unofficial ‘bank’ run by a business cartel in Dambulla to shut down but it continues its operations, disregarding the warning.

The unofficial bank openly operates inside the Dambulla Economic Centre (DEC) handling millions of rupees on a daily basis and defrauding the state of tax revenues, the Sunday Times learns.

The rogue financial institute, created with the patronage of about 120 wealthy DEC traders, served other traders at the centre and had been in operation for the past one year, said sources close to the market, a hot spot of a mafia that allegedly manipulates prices of vegetables. The Sunday Times in its July 5 issue carried the story exposing the vegetable mafia.

The sources said the “bank” which had a five-member board of directors continued to defy the Central Bank’s warnings because of political support.Documents seen by The Sunday Times show that the bank serves as a lending institute and collects interest from its customers on a daily basis.

A trader said the bank was another Sakvithi waiting to happen unless the authorities acted without further delay and brought an end to its operations. “This institute is a law unto itself,” he said.
Central Bank Director S.S. Ratnayake, who is in charge of Non-Bank Financial Institutions, told The Sunday Times they had advised the operators to stay within the Finance Companies Act or bring an immediate halt to their business.

“This institute is definitely not consistent with banking laws. We have spoken to them and even warned them in writing about the consequences they would face should they continue with the operations,” Mr. Ratnayake said.

“Even at this late hour this institute is encouraged to come under the provisions of the law or else it will be asked to shut down and legal action would be instituted against it,” he warned.

Mr. Ratnayake said a Central Bank team visited this institute recently and seized several documents. “We are examining them ahead of taking legal action against the operators,” he said.

 
Top to the page  |  E-mail  |  views[1]
 
Other News Articles
Racial, religious parties to be banned
Mere 18 percent turnout at Jaffna poll
Vavuniya goes to TNA; UPFA wins Jaffna
Pension plus EPF for private sector workers
Violence mars Uva polls; Army deployed in some areas
KP - he knows secrets that have never been told
President’s UN list has more than 50 names
Old and abandoned
White van appears again
The Madhu festival has begun
Order reversed to allow blacklisted persons to vote
Hunt on for bogus rent-a-car agency owner
Illegal bank in Dambulla ignores CB warning
Ministry and student unions on warpath
IDP camps: Diseases on the wane, GMOA hits out at treatment of docs
Royal Wunderbar!
Lakshman Kadirgamar Foundation sends Isuri to MASCOM
Unprecedented medical feat saves life of man
Agonising death in 2007 of a Maligawa elephant
Balangoda calf linked to baby elephant racket
Nipuna relates horror at Pittugala house; police deny SSP’s son involved in assault
Release water and save us, Puttalam farmers plead
Decayed fence discolours ancient inscriptions
Big squid surprises Hikkaduwa fishermen
Thawheed says it only preaches the basic principle of Islam
Captain Ali relief aid being cleared
Spend some time with your children, President urges parents
‘Old boy’ Ranil absent from Royal prize-giving
PCCSL challenges Media Minister

 

 
Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2009 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution