Deposits in approved finance companies

Thursday, 31 March 2016 00:00 - - {{hitsCtrl.values.hits}}

In accordance with Section 9.2 of the Sri Lanka Deposit Insurance schedule regulations, compensation on Insurance for Deposit liabilities (Rs. 300,000 per member maximum) would be paid to deposit holders in the event of the collapse of a finance company.

It was Rs. 200,000 maximum per deposit holder up to 31 December 2014 and increased to Rs. 300,000 per deposit holder effective 1 January 2015). This was advertised by the finance companies when calling for deposits from the public. However, it would be paid only when the license for the registration of the said institution is suspended or cancelled by the Monetary Board. This is very important.

Can the Central Bank of Sri Lanka issue the list of collapsed finance companies whose deposit holders were paid compensation under this respective scheme to date, together with dates of cancellation of licence and date of repayment?

Public should know how effective this advertised insurance scheme is.

It appears that it takes even more than five years to settle the insurance claims. What is the purpose in making compensation to grandchildren when grandparents suffer and die due to mental agony caused by losing their valuable deposits? Can the public at large expect an early reply from Central Bank of Sri Lanka duly published in the press in this regard?

S.R. Balachandran BSc. FCA, FCMA (Sri Lanka)