SLPP pledges to crack down on unregistered leasing companies

Prof. G.L. Peiris

• Says will consider new laws to empower CB if necessary 
• Pledges to amend Penal Code to bring tough legal action against heads and directors of bankrupt finance companies 
• Insists SLPP dedicated to promptly resolving public issues 

By Nuwan Senarathna  

The Sri Lanka Podujana Peramuna (SLPP) yesterday said regulating unregistered financial institutions has been recognised as a priority task under their Government and pledged to bring in necessary legislation if needed to regulate such institutions once the new Parliament is convened.

The importance of regulating the unregistered financial institutions was heavily discussed following the death of Self-Employed Professionals’ Three-Wheeler Association Chairman Sunil Jayawardena.

Speaking to media at the SLPP head office, Chairman Prof. G.L. Peiris said they would look to expanding the powers of the Central Bank of Sri Lanka (CBSL) to monitor any unregistered financial institutions to protect depositors. He also said that fresh measures would be taken to stop seizure of vehicles by finance companies if customers fall behind on instalment payments. The SLPP will consider bringing in new legislation to protect depositors and prevent seizure of vehicles.  

“We will take every possible step to protect the public and end the seizure of vehicles. We will take necessary steps to take legal action against those involved in the seizure of vehicles and those institutions as well,” he said.

Reassuring depositors, Prof. Peiris said they would take necessary action to monitor the financial status of finance companies. He noted they would amend the Penal Code to take tough action against owners and directors of finance companies that failed to return funds.

“We will amend the Penal Code to take legal action against heads of institutions that misused depositors’ funds and failed to return them as they requested. We are also looking to bring in necessary legislation to freeze assets of owners and directors and to return funds to respective depositors,” he added.

He assured that they will take measures to protect the depositors and prevent a repeat of successive financial companies collapsing, which began in the aftermath of the global financial crisis in 2008.  

Prof. Peiris insisted the SLPP is ready to listen to the public and address their issues promptly. Therefore they would not hesitate to bring in any new legislation to assure their safety in the financial or other sectors.