Monday 4 January 2016

Sri Lanka state bank, regulator to take-over troubled primary dealer

ECONOMYNEXT - Sri Lanka's Central Bank and a state-run bank will take-over Entrust Securities, a troubled primary dealer in government securities if the firm does not meet a deadline to meet directions today, Governor Arjuna Mahendran said.

The company will be taken-over to protect the government securities market, if a re-structuring plan is not submitted, he said.

If there is fraud the action will be taken against the management, Mahendran said.

The shortfall of funds may run into 'several billions', he said.

There have been several complaints to the police by clients and the criminal investigations department is also investigating, Mahendran said.

Deputy Governor P Samarasiri said there had been discussion but so far no plan had been submitted. The firm had also violated some directions issued, he said.

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