A new relief package has been offered to disgruntled depositors of Ceylinco Shriram by the three member Chartered Accountants Committee headed by Prof.Lakshman R. Watawala.
On Monday, he presented to Supreme Court a new relief package proposing to pay depositors with deposits of Rs.500,000 or less, either 75% of the deposits or Rs.100,000 whichever is lower as the first stage of repayment. He stated that this decision for the repayment has been already discussed with Shriram directors and the funding has been arranged.
Prof. Watawala noted that the relief package to settle these depositors has been accepted in principle by the Central Bank and this payment will be effective after getting the order from the Supreme Court. He added that once the first stage is completed the second stage of payment will be studied in a similar manner looking into the assets of the company. He further said that he would be meeting the depositors again for the implementation of this stage.
The Supreme Court directed that a meeting be held with the Ceylinco Shriram Depositors Association on March 10 at the Central Bank to enable them to make their counter proposals to the repayment plan.
President of Ceylinco Shriram Depositors’ Association Senarath Wimalasena told the Business Times that Prof. Watawala told them at an earlier meeting held at the Central Bank that a course of action has to be taken as the cash available in hand is limited and as such all depositors will be given this relief at the first stage of the settlement.
But now he is suggesting to pay depositors who have deposits amounting to Rs.500,000 or less. Mr Wimalasena said that they have decided to query into the Rs 4.7 billion debtors and Rs 5.8 billion creditors shown in Ceylinco Shriram Security Holdings’ Balance Sheet.