CBSL must bear responsibility over slump faced by finance bodies : PM Rajapaksa

COLOMBO (News1st) : Prime Minister Mahinda Rajapaksa has said that the central bank must take responsibility over the economic slump of finance bodies under its purview, urging action to be taken against fraud at financial institutions. "The continuous breakdown of financial bodies under the central bank brings disrepute to the government," Rajapaksa had stressed during a meeting on Wednesday, his office said in a statement. He had also called for an investigation into incidents of financial fraud. "Steps must be taken to prevent financial fraud by preparing new laws or by any other means," the Prime Minister had emphasized. His remarks came weeks after the license of The Finance PLC - a leading finance company, had been cancelled due to a downturn. "Justice should be served upon the inconvenienced depositors of The Finance PLC and other finance institutions which have been affected," Rajapaksa had said. Depositors of The Finance PLC are to be compensated from next Monday, according to the Prime Minister's office. The central bank had said that it would settle Rs 11 billion to depositors from its Deposit Insurance and Liquidity Support Scheme, with each depositor receiving a maximum of Rs 600,000. This would see 93 percent of the total depositors — who had deposited less than Rs 600,000 — receiving their money in full.