With reference to our article on September 17, Central Bank of Sri Lanka has sent the following clarification:
Ceylinco entities F and G real Estate Company Limited (FGRECL) and Finance and Guarantee Property Developer (Pvt). Limited (FGPDL)Depositors Claims of Rs. 7 Bn to be settled.
This refers to an article published on ‘Daily News Business’ page on 17.09.2018 under the above title.
We write to inform that FGPDL and FGRECL are neither finance companies licensed under the Finance Business Act, No. 42 of 2011 nor banks licensed under the Banking Act, No. 30 of 1988 to carry on finance business and/or banking business including acceptance of deposits from the public. Thus, the activities of the above-mentioned companies were not regulated or supervised by the Central Bank of Sri Lanka.
However, under the Fundamental Rights Application No. 317/2009, field by the Depositors of FGPDL and FGRECL, the Supreme Court appointed common Board of Directors to FGPDL and FGRECL for the purpose of implementation of the deposit repayment plans.
Accordingly, the Supreme Court, ordered the Board of Directors of FGPDL and FGRECL to call expression of interests from the prospective investors through public advertisements. FGPDL and FGRECL have received few investment proposals and the Supreme Court ordered the Board of Directors of FGPDL and FRECL to proceed with the final evaluation on the shortlisted investors. The task of evaluation has been assigned to M/S KPMG the Chartered Accountants, by the Supreme Court.
Don Duminda Mayadunna who has provided information to the said article is one of the prospective investors of FGPDL and FGRECL and as per article, he has explained the method of repayments to the depositors of FGPDL and FGRECL including the time targets.
However, as per the information available with the Central Bank, Supreme Court under case number SC/FR/317/2009 has not made a final decision on selecting an investor to FGPDL and FGRECL. Further, the Board of Directors of FGPDL and RECL have not submitted the final investor evaluation report prepared by KPMG to the Supreme Court as at the date of publication of the said article.
Therefore, please note that the said article contents inaccurate information which is contradictory to the court proceedings and mislead the depositors of FGPDL and FRECL.
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