Business Times

Former F&G Company takes angry depositors for a ride

The Finance & Guarantee Company Ltd (F&G), renamed the Island Finance Company after the collapse of its parent organisation – the Ceylinco Group, is defaulting fixed deposits by failing to return the money on maturity, even after the Central Bank’s intervention to normalise its operations, depositors alleged.

Last year, F&G’s Central Bank-appointed Managing Agent, the Merchant Bank of Sri Lanka (MBSL) sent a April 24th-dated letter signed by its chairman Janaka Ratnayake to depositors requesting them to renew their deposits for another year, but there was no indication at that time to further extend the period of repayment of deposits on maturity.

Now depositors are not being allowed to withdraw their money. “What right do they have to spend our money as they please?” asked one angry depositor.

Mr Ratnayake, against who most of the depositors’ wrath has been directed against, resigned last week in line with government rules that all heads of state firms step down after the recent elections and has been appointed as the chairman of the Export Development Board.

Depositors noted that the unilateral action of the company would result in a win-win situation only for the management and not the policy holders as they badly need money for their day-to-day living. Most of these depositors are entirely dependent on the interest of these deposits. Some of them are contemplating legal action against the company for the failure to return their deposits on maturity.

When asked to comment on these complaints, Director / Deputy General Manager (Finance) F&G Co, Priyantha Dharamasiri said that they are still not in a position to repay the deposits on maturity as the company is struggling to generate some business.

He pointed out that the company is paying an annual interest rate of 9% and noted that they are still not using the new name because they have to get the approval from the directors of F&G Property Developers Co Ltd and F&G Real Estate Co Ltd who are shareholders of the company.

However depositors said the Island Finance Company operates from the second floor of Green Lanka Towers, Nawam Mawatha, Colombo 2 where the name board is clearly displayed at the location.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
Other Business Times Articles
Cargills looks at new business opportunities
Govt. announces Rs 1.7 trillion budget estimate
Cargills Fort: Harrods of Sri Lanka
Five new firms join stockbroking community
Rains: No respector of property, people and tourists!
Kotelawala pulls out of Ceylinco Insurance re-election bid
ADB President visiting Sri Lanka this week
Global Business Forum in Sri Lanka during IIFA
Sri Lanka Post ventures into financial services to reduce operating deficit
New beginnings, just like in 1977
What do you think?
Corporate results are better than forecasted: analysts
First-ever Agricultural Trade Exhibition in Trincomalee
Capital gains help Hayleys records highest ever profits
AVIVA NDB revenue rises in first quarter but reports loss
Sunlight still leads the market after 125 years
No respite from the rains in Seeduwa
Ulagalla Resort organises medical camp for villagers
Cabraal at Sunday Times Business Club meeting
Asha Central Hospital closes
Cargills, the‘Gedera Yana Gaman’ chain, makes way for new blood
Piramal Glass reports loss for 2010 financial year, signs of improvement
Brandix Mercury earns ISO process certificate
Be innovative and aware of your purpose : Laugfs Chairman
SL attends Intel Asia Pacific channel summit
Strategic partnerships between Lankan firms and Care Int.
Rise in net interest margins enhance bank bottomlines in 1Q2010
SL nanotechnology must add value to commodities : top scientist
StanChart in “Music for a Cause” project
Bank of Ceylon profit and revenue down
CB’s Financial Intelligence Unit in MoU with Customs
BASL to build law experts in focussed business areas
Climate change: how business can thrive with the right moves
Luxe Asia hosts FAM tour for top Indian Agents
Emirates adds 4.7 million passengers
MAS Intimates Thurulie wins Globe Award for Sustainability Innovation for 2010
Depositors of Ceylinco Shriram to receive repayments soon
The thrust, need and ingredients for export growth
Protecting the Ceylon Tea brand
72% increase in 2010 profits for Overseas Realty
Don’t bank on GDP growth for your investment returns
Former F&G Company takes angry depositors for a ride


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2010 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution