Monday, 10 May 2021 05:15

Swarnamahal Finance depositors receive increased compensation Featured

Disgruntled depositors of now defunct Swarnamahal Financial Services PLC (SFSP) will begin receiving the increased compensation of Rs.500,000 each from Monday 10 via Peoples Bank branches countrywide, Central Bank announced.

Payment of Additional Compensation will be made under the Sri Lanka Deposit Insurance and Liquidity Support Scheme.

In a public announcement the country; s monetary authority stated that. the eligible depositors/relevant legal beneficiaries of eligible deposits of the finance company (SFSP) can collect their claims from any People’s Bank branch commencing from Monday 10.05.2021 by producing the relevant documents.

The eligible depositors/ or beneficiaries have been advised to avoid gathering in large numbers at the People’s Bank premises and to strictly comply with the health guidelines.

9661 depositors of this company have become destitute following the down fall of this company due to liquidity issues and mismanagement of the E.A.P Edirisinghe family, depositors alleged.

According to Central Bank Data, the Central BANK has already paid a total of Rs.865.81 million for depositors at the rate of Rs.600,000 each by 28-02 -2021 out of the total payable amount of Rs.983.29 million.

The Monetary Board of the Central Bank has decided to increase the maximum compensation payment under SLDILSS from Rs.600,000 to Rs.1,100,000, by Rs.500,000.

This decision has been taken to provide further relief to the depositors of financial institutions regulated by CBSL in the event of a cancellation or suspension of the licences of such institutions.

The Central Bank ) has commenced payment of the increased compensation amount of Rs 500,000/- to the depositors / relevant legal beneficiaries of Central Investments and Finance Limited (CIFL), The Standard Credit Finance Limited (TSCFL), TKS Finance Limited (TKSFL), The Finance Company PLC (TFC), ETI Finance Limited (ETIFL) and Swarnamahal Financial Services PLC (SFSP).

Accordingly, the depositors / relevant legal beneficiaries of CIFL, TSCFL and TKSFL are being paid directly by the CBSL upon receipt of consent forms along with the required documents specified in the CBSL press notice issued on 04.04.2021.

 

The compensation to depositors / relevant legal beneficiaries of TFC, ETIFL and SFSP will be paid through the island wide branch network of People’s Bank, the Agent Bank appointed by CBSL for this purpose.

 

The depositors / relevant legal beneficiaries of ETIFL have collected their compensation from 09.04.2021 onwards, while the depositors / relevant legal beneficiaries of TFC have also collected t their compensation from 12.04.2021 onwards, from the People’s Bank, officials said

 

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