News
Bimputh Finance heading for liquidation
Over Rs 2 bn so far paid to depositors
By Shamindra Ferdinando
Bimputh Finance PLC (BFP) suspended by the Central Bank in terms of Section 37 of the Finance Business Act No. 42 of 2011 is in the process of paying its depositors.
A senior official of the Department of Supervision of Non-Bank Financial Institutions told The Island that of the total liabilities pertaining to BFP depositors, approximately Rs 58 mn was yet to be paid. At the commencement of the process the BFP owed depositors as much as Rs 3 bn, the official said, adding that some of those yet to be compensated couldn’t be located.
However, some depositors have been fully paid and the remaining full amount could be paid through the same process, the official said.
Department of Supervision of Non-Bank Financial Institutions regulates and supervises Licensed Finance Companies (LFCs) and Specialised Leasing Companies (SLCs) in terms of the Finance Business Act of 42 of 2011 and the Finance Leasing Act No 56 of 2000.
The official said that on Sept 01, 2023 the Central Bank withdrew the license issued to BFP and made a public announcement regarding the payment of compensation to the remaining depositors. “All claims should be made within two years from Sept 1, 2023,” the spokesperson said.
Responding to another query, the official said that once the compensation payment process was brought to a successful conclusion, the Central Bank would move on to the next stage. That would be the appointment of a liquidator by a competent court after the Central brings the matter to the notice of the Attorney General, the official said.
Daya Gamage founded the BFP in late July 2007, a year before he successfully contested the election for the Eastern Provincial Council. During the Yahapalana (2015-2019) administration the UNP National Organizer Gamage served as Minister of Primary Industries.
The official said that regulatory authorities had no option but to direct BFP to begin compensation payments after consolidation attempts failed. Had the BFP been successful in its negotiations, its assets and liabilities could have been passed on to another party thereby avoiding the liquidation process.
The Island also raised the developments pertaining to loans acquired by BFC during the period of operations against the backdrop of the Committee on Public Enterprises (COPE) taking up a loan the failed company obtained from HDFC Bank during the Yahapalana administration.
Last Nov the COPE inquired about Rs 350 mn loan HDFC Bank had released to BFP on July 18, 2018. The COPE hadn’t inquired about this particular loan at least once prior to it as the HDFC was never summoned before COPE during the tenure of Sunil Handunetti and Charitha Hearath as Chairman of the watchdog committee.
According to parliamentary records, HDFC Bank appeared before COPE on Nov 04, 2014 before being called again in Nov 2023 by Prof. Rajith Bandara.
The Director, Resolution and Enforcement Department has assured depositors of BPF that they would be compensated in line with the provisions of the Sri Lanka Deposit Insurance and Liquidity Support Scheme (SLDILSS) Regulation No 02 of 2021.
Latest News
Heat index, is likely to increase up to ‘Caution level’ at some places in Eastern and North-central provinces and Mullaitivu and Vavuniya districts
Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre of the Department of Meteorology at 3.30 p.m. 27 April 2025, valid for 28 April 2025
The public are warned that the Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in Eastern and North-central provinces and Mullaitivu and Vavuniya districts.
The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.
Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.
ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated. Dress: Wear lightweight and white or light-colored clothing.
Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.
Latest News
People have now started to think of themselves as Sri Lankans sans ethnic or religious divisions- PM
Prime Minister Dr. Harini Amarasuriya stated that for the first time in history, mosques in Kandy had opened their doors to accommodate the needs of devotees visiting the Temple of the Sacred Tooth Relic and that people have now started to think of themselves as Sri Lankans beyond dividing into ethnicities and religions.
The Prime Minister made these remarks while addressing a public gathering held in the Paragahadeniya area in Kurunegala.
Prime Minister Dr. Harini Amarasuriya further stated:
“This country is undergoing a transformation we expected,so accordingly, we must operate in new ways. People are beginning to feel that we must work towards a new transformation. We can see this change even within our ministries. These days, sometimes when we visit ministries even after 5 PM, and ask if it is possible to have discussions, the officials are always open. Today, public officials are willing to work late into the night, until 9 or 10 PM. Officials have now started working without fear.
Remarkably, for the first time in history, Muslim mosques in Kandy remained open throughout the night to accommodate pilgrims visiting the Temple of the Sacred Tooth Relic. They even provided space for devotees to rest. There were no ethnic or religious tensions. What we saw was respect for other ethnicities and religions. This is happening because there is now a sense of a government that represents all Sri Lankan people, not just Sinhalese, Muslims, or Tamils”.
The event was attended by the candidates for the local government election including the residents of the area.
[Prime Minister’s Media Division]
The Frontline Socialist Party (FSP) has urged the NPP government to prevent Japan’s Onomichi Dockyard Company from selling its 51% ownership stake in the Colombo Dockyard Limited (CDL) to Indian government-owned Mazagon Dock Shipbuilders Limited, Mumbai, a leading shipbuilder.
FSP spokesman Pubudu Jayagoda told The Island yesterday (27) that the move seemed to be in line with the overall India-Sri Lanka understanding on the basis of the recently signed memorandum on defence cooperation.
Against the backdrop of deteriorating financial situation, the Japanese company has informed the board of directors of CDL of its plans to divest its 51 percent ownership stake in the international shipbuilding and repair company. The Japanese shipbuilder made the announcement in early Dec last year.
Alleging that an agreement has been reached on the sale of Onomichi’s controlling ownership stake to the Indian ship builder, Jayagoda questioned
the move as Mazagon primarily built a range of warships and attack submarines. Jayagoda pointed out that according to Mazagon’s profile, the Indian government-owned business undertaking was involved with European companies engaged in ship and submarine construction.
Addressing a Local Government election meeting at Weeraketiya, Pallekanda, in support of those contesting the May 6 election on the ticket of Jana Aragala Sandhanaya (JAS), the executive committee member of JAS Jayagoda emphasized that in terms of the agreement between Sri Lanka and Japan, Onomichi couldn’t sell its stake without the Sri Lankan government’s approval. Therefore, the NPP government should intervene to halt the Japanese-Indian move, the FSP spokesman said while urging the parliamentary opposition to publicly oppose the planned sale of the Japanese stake.
Among other stakeholders are Sri Lanka Insurance, Sri Lanka Ports Authority and EPF.
By Shamindra Ferdinando
Heat index, is likely to increase up to ‘Caution level’ at some places in Eastern and North-central provinces and Mullaitivu and Vavuniya districts
People have now started to think of themselves as Sri Lankans sans ethnic or religious divisions- PM
Heavy showers about 100 mm are likely at some places in Central, Sabaragamuwa, Uva, Eastern and North-central provinces and in Vavuniya, Mullaittivu and Kurunegala districts.
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