Clarification -Mercantile Credit Limited

THERE have been misleading reports in the media with reference to Mercantile Credit Limited which require correction and clarification.

a. The Management of Mercantile Credit Limited was taken over as a going concern by a Management Committee comprising of nominee Directors appointed by the Central Bank of Sri Lanka on the 24th July 1991 and a nominee of the Central Bank was appointed as Managing Director thereafter by the then Governor of the Central Bank.

The Directors of the Company prior to this date were not members of the Management Committee and the Management Committee ran the Company at its sole discretion.

b. The Directors of the Company, Mr. A.N.U. Jayawardena, Ms Neiliya Perera and Mr. Milinda Moragoda along with the late Deshamanaya N.U. Jayawardena resigned from the Board and the Company on the 5th February 1992 and the Management and administration of Mercantile Credit Limited was vested in the Central Bank on 6th February 1992 as per a Gazette Notification.

c. The former Directors of Mercantile Credit Limited have no knowledge or awareness whatsoever of the operations of the Company from the 6th February 1992 i.e. for a period of more than thirteen years.

d. Mercantile Credit Limited did not get any facilities from the Central Bank whilst the former Directors were managing the Company and all borrowings, if any, from the Central Bank were probably granted at the request of the Central Bank's own Management Committee, when they were managing Mercantile Credit Limited.

Julius & Creasy, Attorneys-at-Law for the former Directors of Mercantile Credit Ltd.