Connect with us

News

Bimputh Finance heading for liquidation

Published

on

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.



Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest News

Advisory for severe lightning for the Western and Sabaragamuwa provinces and Galle and Matara districts

Published

on

By

Advisory for Severe Lightning Issued by the Natural Hazards Early Warning Centre at 12.15 p.m. 06 December 2025 valid for the period until 11.00 p.m. 06 December 2025.

The public are being cautioned that thundershowers accompanied with severe lightning are likely to occur at some places in the Western and Sabaragamuwa provinces and in Galle and Matara districts.

There may be temporary localized strong winds during thundershowers.

The General public is kindly requested to take adequate precautions to minimize damages caused by lightning activity.

ACTION REQUIRED:

The Department of Meteorology advises that people should:

 Seek shelter, preferably indoors and never under trees.

 Avoid open areas such as paddy fields, tea plantations and open water bodies during thunderstorms.

 Avoid using wired telephones and connected electric appliances during thunderstorms.

 Avoid using open vehicles, such as bicycles, tractors and boats etc.

 Beware of fallen trees and power lines.

 For emergency assistance contact the local disaster management authorities.

Continue Reading

News

Government briefs Diplomatic Community on recovery progress

Published

on

By

A special briefing for the diplomatic community in Sri Lanka was held on 4 December at the Ministry of Foreign Affairs, Foreign Employment and Tourism, chaired by Prime Minister Dr. Harini Amarasuriya together with the Minister of Foreign Affairs, Foreign Employment and Tourism,  Vijitha Herath. Senior government officials, including representatives of the Disaster Management Centre (DMC) and the Sri Lanka Tourism Development Authority (SLTDA), also participated.

Opening the session, Prime Minister Dr. Harini Amarasuriya expressed her gratitude  to the diplomatic community for their immediate support and solidarity following the recent floods and landslides. She noted that Sri Lanka had endured one of the most severe disasters in recent years, but the resilience of the people and the coordinated efforts of government agencies had enabled a rapid response and significant progress in relief operations. She confirmed that not a single tourist has been reported harmed during the disaster and noted that the previously inaccessible areas are now reachable. Massive cleanup and decontamination operations are underway to ensure that lands and public spaces are safe for return, and communications have been restored in the affected areas.

The Prime Minister emphasized that relief, evacuation, and emergency assistance were carried out with the collective effort of the tri-forces, police, public officers, health workers, volunteers, and local authorities. She acknowledged the continuing challenges, including the restoration of infrastructure, resettlement needs, and long-term disaster-mitigation work, and welcomed the technical, humanitarian, and financial support offered by partner countries.

Maj. Gen. Sampath Kotuwegoda (Retd), Director General of the Disaster Management Centre, delivered a detailed presentation on the current status of the disaster, including the number of affected families, evacuation centres, damage assessments, and the ongoing coordination with international agencies for recovery planning. The cyclone affected almost the entire country, with 22 districts severely impacted. Some locations recorded up to 540 mm of rainfall and winds of up to 70 km/h, causing widespread infrastructure damage. Early assessments indicate that 2.3 million people were exposed to flooding, with 1.8 million people directly affected on the ground and 1.1 million hectares of land impacted. The assessment also identified 40,152 pregnant women among those affected, who have been prioritized for support. He also highlighted areas where further technical cooperation, such as early-warning systems, mapping capabilities, and climate-response technologies would be valuable.

Buddhika Hewawasam, Chairman of the Sri Lanka Tourism Development Authority, briefed the diplomatic community on the impact of the disaster on the tourism sector. He reassured attendees that major tourism zones remain operational, safety assessments are underway, and contingency measures have been activated to support visitors and protect the industry during the upcoming peak season. The Chairman of the Hotel Association of Sri Lanka Ashoka Hettigoda confirmed that the Coastal and resort hotels from Maravila to Passikudah are operating, with many reporting 60–65 percent occupancy; the hotels in Nuwara Eliya are partially operational. He made an appeal that the best assistance that the international community can give to Sri Lanka is the continued support provided through tourism.

Several diplomats conveyed their condolences to affected communities and reaffirmed their governments’ readiness to assist Sri Lanka in both immediate relief efforts and long-term rebuilding. They expressed appreciation for the government’s transparent engagement and the coordinated approach to managing the crisis.

Prime Minister thanked the diplomats for their continued cooperation and underscored the government’s commitment to ensuring an effective and inclusive recovery. She stressed that strengthening disaster preparedness, climate resilience, and institutional capacity will be central to Sri Lanka’s national development agenda moving forward. Deputy Minister of Foreign Affairs, Foreign Employment and Tourism,  Arun Hemachandra, Secretary to the Prime Minister, Pradeep Saputhanthri, and Secretary to the Ministry of Foreign Affairs, Ms. Aruni Ranaraja, also attended the meeting.

[Prime Minister’s Media Division]

Continue Reading

News

All parties have agreed to recruit Development Officers into the teaching service through a competitive examination – PM

Published

on

By

Addressing Parliament on Friday  (05), the Prime Minister stated that, in accordance with the Supreme Court decision, the recommendations issued by the Public Service Commission, and the Sri Lanka Teachers’ Service Minute, all parties have agreed to recruit teachers through a competitive examination. The Prime Minister further noted that during the second phase of the recruitment process, the Development Officers currently serving in schools will be given preference during the interviews.

Addressing further, the Prime Minister stated,

“In compliance with the final order of the Supreme Court and the provisions of the Sri Lanka Teachers’ Service Minute, the Development Officers will be given the opportunity to join the Sri Lanka Teachers’ Service.

It has been decided to revise the maximum age limit of 40 years, as specified in the examination notification for applicants, to 45 years for this instance only”.

The Prime Minister further stated that, in accordance with the Supreme Court decision, arrangements have been taken to revise the age limits for graduates employed in the public service and graduates not employed in the public service, and to conduct separate examinations accordingly, in order to recruit teachers to Grade 3. i (a) of the Teachers’ Service to fill the available vacancies.

[Prime Minister’s Media Division]

Continue Reading

Trending