By Ishara Gamage
Ceylon Finance Today- The Central Bank of Sri Lanka (CBSL) is in a fresh initiative to restructure six ailing finance companies, a bank official said yesterday.
Under the Supreme Court direction, the CBSL is also planning to appoint two Treasury officials to the Golden Key Credit Card Co Ltd's board. Golden Key, which is now under the CBSL's liquidation process, will retain Priyantha Fernando as the Chairman, official said.
The CBSL earlier abandoned the financial sector consolidation process which was introduced by the previous central bank regime and the present government was not encouraging such type of forceful consolidations.
Three senior CBSL officials who recently toured Malaysia on an observation visit, were now currently involved in this restructuring process, he said.
They have studied the similar successful restructuring cases in Malaysia, he said.
Central Investments & Finance PLC (CIFL) which collapsed almost two years is our biggest worry at the moment, he remarked.
The company's total asset value has now reduced to Rs 216 million from Rs 3.8 billion.
According to CBSL sources, The Finance, City Finance Corporation Ltd, The Standard Credit Finance Ltd and two other EAP Group owned companies were currently facing liquidity problems.
When contacted by Ceylon FT, City Finance Corporation Ltd Director Dinesh Hettiarachchi said that he was expecting some overseas investments. Singapore based One Asia Investment Partners said that they have already invested Rs 175 million in this company.
Former Foreign Minister Rohitha Bogollagama's son DK Bogollagama is now a Vice President, Head of South Asia at One Asia Investment Partners ("One Asia")."At least we need another one billion rupees for running this company. Earlier, the Central Bank agreed to provide some financial assistance from its deposit insurance scheme but it did not work," the City Finance official said.
The Finance also needs some additional Rs. 3 or 4 billion to overcome its accumulated losses and liquidity problems, its official said.
The Standard Credit Finance Ltd is now under the Entrust group.
The EAP group earlier had a plan to sell one of its finance companies.
Four independent directors of the CIFL recently alleged that there had been many manipulated figures in the financial statements of the company since 2004.
www.ceylontoday.lk
Ceylon Finance Today- The Central Bank of Sri Lanka (CBSL) is in a fresh initiative to restructure six ailing finance companies, a bank official said yesterday.
Under the Supreme Court direction, the CBSL is also planning to appoint two Treasury officials to the Golden Key Credit Card Co Ltd's board. Golden Key, which is now under the CBSL's liquidation process, will retain Priyantha Fernando as the Chairman, official said.
The CBSL earlier abandoned the financial sector consolidation process which was introduced by the previous central bank regime and the present government was not encouraging such type of forceful consolidations.
Three senior CBSL officials who recently toured Malaysia on an observation visit, were now currently involved in this restructuring process, he said.
They have studied the similar successful restructuring cases in Malaysia, he said.
Central Investments & Finance PLC (CIFL) which collapsed almost two years is our biggest worry at the moment, he remarked.
The company's total asset value has now reduced to Rs 216 million from Rs 3.8 billion.
According to CBSL sources, The Finance, City Finance Corporation Ltd, The Standard Credit Finance Ltd and two other EAP Group owned companies were currently facing liquidity problems.
When contacted by Ceylon FT, City Finance Corporation Ltd Director Dinesh Hettiarachchi said that he was expecting some overseas investments. Singapore based One Asia Investment Partners said that they have already invested Rs 175 million in this company.
Former Foreign Minister Rohitha Bogollagama's son DK Bogollagama is now a Vice President, Head of South Asia at One Asia Investment Partners ("One Asia")."At least we need another one billion rupees for running this company. Earlier, the Central Bank agreed to provide some financial assistance from its deposit insurance scheme but it did not work," the City Finance official said.
The Finance also needs some additional Rs. 3 or 4 billion to overcome its accumulated losses and liquidity problems, its official said.
The Standard Credit Finance Ltd is now under the Entrust group.
The EAP group earlier had a plan to sell one of its finance companies.
Four independent directors of the CIFL recently alleged that there had been many manipulated figures in the financial statements of the company since 2004.
www.ceylontoday.lk
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