The Sunday Leader

Major Financial Institution On The Verge Of Collapse

A major financial institution is on the verge of collapse owing to the failure by the Central Bank to closely supervise its operations. The financial institution, which operates with an island-wide network, was earlier under the Ceylinco Group but is now managed by the Central Bank.

Well informed sources said that poor management of the financial institution by directors appointed by the Central Bank is threatening to derail the operations of the company.

In 2009 when the Central Bank decided to restructure the company after the collapse of its parent company, it had assets over of Rs. 35 billion and a deposit base of around Rs. 25 billion.

However its current directors have reportedly mismanaged the institution, one of the oldest in the country, and this had led to even several employees resigning.

The new directors were appointed last year and since then disagreements arose between the staff and the management.

Sources said that the Managing Director of the financial institution had been removed from another company which he had mismanaged before he got his latest appointment. Employees of the company have said that the Central Bank’s failure to closely monitor the functions of the financial institution could result in some employees being unemployed.

If this issue is not addressed soon, it could end up like another Golden Key debacle.

3 Comments for “Major Financial Institution On The Verge Of Collapse”

  1. We have become addicted to illicit wealth in all spheres of activity and finally appeal to the gods to save us from been discovered and prosecuted. Those who are been questioned by the various authorities , emerge from the interviews with high spirits of been sure of ultimately escaping the law. What have we become?

  2. kudson

    frauds and conmen run the financial institutions of this country
    they deserve the death sentence

  3. If this is The Finance, We predicted this scenario after doing a survey about 2 years ago. This was ignored by the then management except the Chairman. We are a leading consultancy firm in Sri Lanka based in Rajagiriya.

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