Six financial companies have fallen since 2015 – Minister of State
Six financial institutions had fallen into crisis since the arrival in power of the previous good governance government until August 31, 2020.
These are Central Investments and Finance Ltd (formerly Central Investments and Finance PLC Ltd), The Standard Credit Finance Ltd, TKS Finance Ltd, The Finance Company PLC, ETI Finance Ltd and Swarnamahal Financial Services PLC, Money and Capital Market and State Enterprise Reforms State Minister Ajith Nivad Cabraal told Parliament yesterday.
Responding to a question from SJB MP Hesha Withanage, he said there were 41 registered finance companies. Cabraal presented the details of these companies.
Responding to the question of how many depositors have kept deposits at each financial institution, he said, Central Investments and Finance Ltd (formerly Central Investments and Finance PLC Ltd) 20,161 with the total deposits amounting to Rs. 3 965 million, The Standard Credit Finance Ltd, 6,600 depositors and a total of Rs. 2,721 million, TKS Finance Ltd, total of depositors 35,184 and a total of Rs. 2,691 million, The Finance Company PLC, 147,152 depositors for a total of Rs. 27,400 million, ETI Finance Ltd with 37,586 depositors and a total of Rs. 22,648 and Swarnamahal Financial Services PLC. 9,623 depositors with an investment of Rs. 2,372 million.
In response to the question on the steps that have been taken and will be taken to bring justice to the depositors of the aforementioned financial institutions, Minister of State Cabral said he would table a detailed report on the relevant steps taken with respect to each of these establishments. He also added that these details were notified to Cabinet on October 29, 2020.
MP Hesha Withanage said the country is facing a huge crisis with the collapse of these financial institutions. He added that apart from these financial institutions, the average poor deposit their hard-earned savings in Samurdhi banks all over the country, saying the government has recently used these funds from these deposits for various projects. He alleged that these accounts were now empty and asked the government what steps had been taken to recover the money from these accounts and when that would happen.
In response, Minister of State Cabraal refuting Withanage’s claims said Samurdhi banks are not regulated by the Central Bank. “Samurdhi banks are regulated by a separate law, but if you wish, I could present these details to you at a later date,” he said.