Depositors of Ceylinco Shriram will receive their long-awaited deposits on the basis of 75% of the deposit value or Rs.100, 000 whichever is lower under a re-payment plan approved by the Supreme Court last week.
Under this 1407 depositors who have deposits of Rs.500,000 or less will be repaid in the first phase after an out-of-court settlement reached by representatives of the Ceylinco Shriram Depositors Association, company directors, the 3-member Chartered Accountants Committee headed by Lakshman Watawala and all other stake holders.
The initial payments will be made out of Rs.860 million which is to be realized under the personal supervision of the Chartered Accountants Committee. The court also ordered to transfer US$300,000 from the account of Sri Lankan Travel Incorporated at Standard Chartered Bank York Street Colombo 1 to the dedicated account of Ceylinco Shriram Capital Management Services Company Ltd, opened at the Seylan Bank. The Committee informed the court that a sum of Rs. 410 million could be realized within the next 3 to 6 years.
The 3-member Supreme Court bench headed by Justice Shirani Tilakawardane endorsed the settlement of the Fundamental Rights case filed by 11 depositors when the case was taken up for hearing on May 6. The payment to the balance 2,700 depositors will be made thereafter from the available funds and with the sale of assets within the next three to six months.
This settlement was reached in pursuant to the fundamental rights application filed by Ikram Mohamed PC, A.P Niles, and S. Jayasundare on behalf of the Colombo depositors which was supported by Wasantha Wijewardane on behalf of Shriram’s Kandy depositors.