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.
News
INS TARANGINI makes port call in Trincomalee
The Sail Training Ship of the Indian Navy, INS TARANGINI arrived at the Port of Trincomalee on a formal training visit on 27 Feb 26. The visiting ship was welcomed by the Sri Lanka Navy (SLN) in compliance with time-honoured naval traditions.
INS TARANGINI is a 54m long platform which is manned by a crew of 36 and is commanded by Commander Nitin Gajjar.
Meanwhile, Officer Under-trainees and Sea Cadets are expected to participate in sail training familiarization programmes aboard the ship and observe its operational functions during its stay in the island.
Furthermore, the ship’s crew is scheduled to take part in programmes organized by the Sri Lanka Navy to enhance camaraderie between the two navies, as well as visit several tourist attractions in the country.
News
Renewed Lanka’s Easter Bombing probe puts NTJ’s South India radicalisation network back under lens
New Delhi (IANS):The arrest of Sri Lanka’s former Intelligence chief, Retired Major-General Suresh Sallay is a turning point in the investigations into the 2019 Easter Sunday bombings that killed 279 people.
The move was a bold one taken by President Anura Kumara Dissanayake who won the presidency in 2024.
He had promised that all persons involved in the attack would be brought to justice.
Sallay was made State Intelligence Service (SIS) chief in 2019 after Gotabaya Rajapaksa became President.
The allegation against Sallay was that he had permitted the attack to take place with the intention of influencing that year’s presidential election, which was eventually won by Rajapaksa.
Sallay had become a prominent figure in Sri Lanka and was widely credited with dismantling the LTTE. His arrest has led to a political storm and many state that it could revive tensions relating to the LTTE.
Ali Sabry, former Sri Lankan Minister for Foreign Affairs said that the developments are deeply troubling.
An Indian official said that the developments in Sri Lanka are being monitored closely.
On the question whether the LTTE issue would come back into the picture following the arrest of Sallay, the officer said that attempts are being made, but it would be very tough.
There have been several cases that the National Investigation Agency (NIA) has been probing concerning the revival of the LTTE.
The ISI, too, has tried its hand in ensuring the revival of the LTTE, but has not been successful so far.
To prevent the revival of the LTTE, both India and Sri Lanka have been working very closely.
Another official explained that the current ties with Sri Lanka have gone from ideological to an investment-led partnership.
Prime Minister Narendra Modi and President Dissanayake share a pragmatic relationship and this has gone a long way in ensuring cooperation on all fields including security, the official explained.
While some in Sri Lanka do not subscribe to Dissanayake’s decision on Sallay, the fact is that the Easter Bombing case has to be probed from every possible angle.
An Intelligence Bureau official says that a major concern today are the activities of the National Thowheeth Jama’ath (NTJ) and Jamathei Millathu Ibrahim (JMI), the two outfits responsible for this attack.
The NTJ in particular has a vast presence in South India and has managed to radicalise a large number of youth in Tamil Nadu and Kerala.
The mastermind of the attack, Mohammad Zahran Hashim was a frequent visitor to Tamil Nadu. He was also responsible for the radicalisation of Jamesha Mubeen who carried out an unsuccessful attempt to bomb a temple in Coimbatore in 2022.
The Indian agencies have been actively pursuing the role played by Hashim. A probe by the NIA in the South India radicalisation case revealed that the entire plot was being run by Hashim from Sri Lanka.
At least 50 of the 100 radicalisation videos seized by the agency were discourses by Hashim, who had close links with the Islamic State.
Officials say that Sallay could provide details to investigators about the module that Hashim ran.
This would come in handy for the Indian agencies who are probing cases directly linked to the NTJ in South India.
Hashim, who was the ring leader for the suicide bombers during the Easter Bombing had spent a considerable amount of time in India.
The Indian agencies would want to learn if any of the locals that Hashim interacted with had any idea about the Easter Bombings.
While in India, Hashim had focussed his radicalisation programmes mainly at Mallapuram, Coimbatore, Nagapattinam, Kanyakumari, Ramnathpuram, Vellore, Trichy and Thirunelveli, the NIA probe found.
Pallay has for now denied any links to the Easter Bombings.
Indian officials say that they do not want to comment on Pallay and his alleged links.However, it is important that the bombings are probed thoroughly since the activities of the NTJ have a direct bearing on India, particularly the southern states, the official also added.
News
Sajith warns: Don’t let trade union action stall cyclone relief
Opposition and SJB Leader Sajith Premadasa on Friday stressed that relief efforts for communities affected by Cyclone Ditwah must not be derailed by internal disputes, as several trade unions announced plans to withdraw from disaster relief duties.
Taking to ‘X’, Premadasa called on the Government to prioritise coordination and ensure uninterrupted assistance to families still awaiting aid.
“The Government must work closely with officers on the ground to ensure coordination and uninterrupted support. When families are still waiting, how can we allow for this confusion?” he questioned, emphasising that relief measures should not be delayed under any circumstances.
His remarks follow the decision by several trade unions representing Government officers engaged in disaster relief operations to launch trade union action beginning from Friday (27 February).
The unions announced their withdrawal from relief-related duties, citing unresolved issues affecting officers involved in post-disaster operations.
According to the unions, more than 93 days have elapsed since the widespread destruction caused by Cyclone Ditwah. During this period, disaster relief officers and Grama Niladharis have worked continuously, day and night, acting as key coordinators between the Government and affected communities. However, they claim that authorities have failed to adequately address longstanding concerns relating to officers engaged in relief work.
Meanwhile, Secretary to the President Nandika Sanath Kumanayake yesterday underscored the need to expedite relief and recovery initiatives.
Chairing a progress review meeting of the National Council for Disaster Management, he called for strengthened coordination among State institutions responsible for disaster response, noting that effective inter-agency collaboration is critical to delivering timely assistance to affected communities.
Efforts to accelerate recovery and maintain continuity in relief operations are ongoing.
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