Sept 05, Colombo: Sri Lanka's Marxist party Janatha Vimukthi Peramuna (JVP) has questioned why the Central Bank has not taken steps to prevent the Central Investment Finance Ltd (CIFL) from going bankrupt.
JVP parliamentarian Anura Kumara Dissanayake said in parliament that CIFL depositors have been left in the lurch after the finance company has gone bankrupt.
The JVP MP said the Central Bank has failed to prevent the company from going bankrupt and over 6,000 depositors are facing difficulties due to the company's bankruptcy.
According to Dissanayake, the company has not made any payments to depositors since November 2012.
He added that CIFL is a registered financial company under the Central Bank and that the total investments attracted by the company amount to Rs. 3.4 billion.
The government in response has said the Central Bank had ordered the CIFL on many occasions to rectify its shortcomings in financial management.
The Monetary Board of the Central Bank appointed People's Leasing & Finance PLC as the managing agent of CIFL with effect from July 01.
The Managing Agent is expected to improve the financial status of CIFL within a reasonable period of time, and the Central Bank will closely monitor the progress.