Term of COI probing ETI extended

• President extends term by six months
• COI appointed in January to probe alleged wrongdoing, irregularities and malpractice in connection with ETI Finance

President Gotabaya Rajapaksa yesterday extended the term of the Commission of Inquiry (COI) appointed to inquire into alleged wrongdoing, irregularities, and malpractice in connection with ETI Finance Ltd. (ETI) by a period of six months.

President Gotabaya Rajapaksa

The term of the COI, which was appointed in January, expires today (9 April). President Rajapaksa extended its term till 9 October 2020 via a Gazette notification issued yesterday.

The COI is headed by retired Supreme Court Judge K.T. Chithrasiri, while its members are retired Solicitor General Suhada Gamalath, Esq., and senior banker D.M. Gunasekara.

It is tasked with probing alleged wrongdoing, irregularities, and malpractice in connection with ETI Finance Ltd. (ETI), a finance company which was regulated by the Central Bank of Sri Lanka and which faced serious financial problems, leading to the CBSL’s intervention and a sale of the assets of ETI to settle its depositors.

ETI’s assets included Swarnamahal Financial Services PLC, EAP Broadcasting Company Limited with its subsidiaries; EAP Films and Theatres Ltd. (and its subsidiaries); Hotel Sapphire Ltd.; Swarnamahal Jewellers Ltd.; and other immoveable assets owned by ETI Finance PLC.

The COI is probing the sale of the above establishments to a consortium consisting of Blue Summit Capital Management Private Ltd. and Ben Holdings Private Ltd., in violation of restrictions under the laws of Sri Lanka on ownership of media institutions by foreigners, and the sale of the assets of ETI to said party in violation of the laws of Sri Lanka prohibiting the purchase of immoveable properties by foreigners.