Payment of compensation to "The Finance" depositors begins

The Central Bank of Sri Lanka has said that it has begun compensating the depositors of The Finance PLC, by issuing a maximum compensation of Rs. 600,000. However, depositors in several areas of the country have been severely impacted as a result of being unable to collect their deposits. Depositors in several areas of the country visited the branches of The People's Bank this morning in a bid to collect compensation. Our correspondents who visited many areas including Galle, Kandy, Ampara, Ja-Ela, Matara, and Battaramulla, had observed that the process of issuing compensation had not been carried out in an efficient manner. A tense situation arose at the Galle branch of The People's Bank after more than 300 depositors had not received compensation. ******************** There are around 4000 depositors in the Anuradhapura District and a group of depositors arrived at The People's Bank branch in Anuradhapura to collect their compensation. Our correspondent reported that some depositors had received compensation. However, a tense situation arose after individuals who had deposited more than 600,000 rupees had demanded the entire amount to be compensated. ******************** A large group of people arrived at the People's Bank branch in Chilaw this morning. Our correspondent reported that compensation had not been paid to several depositors as their details had not been sent by the Central Bank of Sri Lanka. A tense situation arose after the Manager of the branch had informed that compensation cannot be paid for depositors who have placed two or more deposits. ******************** The Central Bank of Sri Lanka has said that unsettled compensation would be paid after liquidating the assets of The Finance PLC. Accordingly, The Central Bank of Sri Lanka said that under the first phase of providing compensation, depositors who hold single deposits would be granted compensation at The People's Bank branch nearest to the branches of The Finance PLC. ******************** A tense situation arose outside the People's Bank in Kandy after several depositors had not been paid compensation. Police had arrived at the location to control the situation.