Indictments served on ETI Directors released on bail

By T. Farook Thajudeen

The Colombo High Court yesterday released the former Directors of Edirisinghe Trust Investments (ETI) on bail, over the Rs. 7 billion misappropriation case.

Former Directors of ETI Finance – Nalaka Edirisinghe, Jeewaka Edirisinghe, Anjalee Edirisinghe and Asanka Edirisinghe – were served indictments when the case was taken up yesterday (3).

In January, the suspects were taken into custody on charges of criminal misappropriation, cheating, money laundering, etc. in their capacity as directors of ETI Finance and Swarnamahal Jewellers.

Following the serving of indictments to the accused, the Colombo High Court fixed the trial for 8 September. 

It was found that the former Directors of ETI Finance had used deposits by the public with ETI in undisclosed accounts for personal gain and benefits.

The prosecution alleged that the ETI Directors had persuaded the public to deposit with ETI Finance by misleading said depositors into thinking that ETI was a well-run financial institution despite there being a severe liquidity crisis within ETI. Henceforth, the accused were allegedly able to illegally obtain billions in deposits by maintaining undisclosed accounts with the Central Bank.