Letters to the Editor - Central Bank and TFC

Further to the clarification issued by the Central Bank of Sri Lanka regarding the controversial The Finance Company (TFC), I would like to congratulate the President Mahinda Rajapaksa for rescuing its depositors.

We know that it was President Rajapaksa who as Minister of Finance intervened to help hapless depositors of TFC and ordered the CBSL to take over the administration. We thank the President for that.

The CBSL talks about a 5.36 per cent increase in the deposit base of the TFC in the last financial year. This is quite misleading as much of the increase came because withdrawals were not allowed and on maturity the deposits had to be re-deposited.

I can’t think anyone in his or her proper senses going to high interest paying organisations after the Golden Key fiasco. That is why the vast number of people in this country still prefers to go to the National Savings Bank. That is precisely why we should all protest when the NSB tries to breach our trust and try to take up shares in a sick financial institution, which has failed many times and on each occasion rescued at the expense of tax payers. Even now, the so called re-structuring is at the cost of Sri Lankan tax payers.

The CBSL should not try to mislead depositors with half truths. Congratulations to the Daily FT for allowing the space for a healthy debate on controversial subjects without fear or favour.

Sunil Mendis

Colombo