No illegal activity in ETI financial assets sale - CB Deputy Governor | Daily News

No illegal activity in ETI financial assets sale - CB Deputy Governor

Central Bank Deputy Governor H.A.Karunaratne said that there has been no illegal activity in the sale of financial assets at ETI Finance Ltd.

“Accordingly, selection of a party to whom the assets of ETI Finance Ltd were to be transferred was done by the Board of Directors (BOD) of Finance Ltd and the Central Banl only granted the necessary approval from the perspective of protecting the depositors’ interests, subject to various conditions, including carrying out the transaction in compliance with all the applicable laws and regulations in the country,” he added.

Addressing a media briefing in Colombo yesterday, Karunaratne said that the Central Bank took measures of reviving ETI Finance Ltd which was facing inadequate liquidity in order to assure the justice for its depositors.

A transparent mechanism was required to find an investor for the Finance Ltd and to get those funds to the Central Bank.

The directors had then found a buyer, Blue Summit Capital Management (Pte) Ltd, a Singapore-based investment firm, who have presented a business plan to revive it. The monetary board had approved the sale of assets for US$75 million.

Out of which about US$54 million had so far been received. Another US$ 16 million too will shortly be received. Altogether, US$70 million will be received which will be used to settle 30 percent of the deposits .

In the case of Swarnamahal Financial Services PLC (SFSP), separate regulatory approvals are required to change the ownership of the company. Accordingly, conditional approval was granted by the Monetary Board of CB for a separate proposal submitted by SFSP.

In the event the current buyer is not able to infuse the balance $ 5 million, ETIF would retain SFSP. In this regard, ETIF is already considering alternatives for reviving SFSP.

 


 

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