News
The Finance Company depositors eligible to be paid Rs 500,000 each more
By Saman Indrajith
State Minister Money, Capital Markets and State Enterprise Reforms Ajith Nivard Cabraal told Parliament, yesterday, that the depositors of the failed the Finance Company (TFC) would be paid Rs. 500,000 each from the liquidity fund in addition to the Rs. 600,000 they had been paid under the Sri Lanka Deposit Insurance and Liquidity Support Scheme.
The Minister said so responding to a question raised by Opposition Leader Sajith Premadasa, who demanded to know from the government what measures had been taken to assist the aggrieved depositors of failed finance companies in the country, including TFC.
The Minister said that around Rs. 12 billion would be utilised to pay the depositors from the fund which currently stood at Rs. 60 billion. The decision on the additional payment had been made on a directive from Prime Minister Mahinda Rajapaksa, Parliament was told.
“We started the liquidity fund in 2010 with Rs. 1.1 billion when I was the Governor of the Central Bank and current Prime Minister Mahinda Rajapaksa was the President. Both the President and the Prime Minister have decided that the depositors of The Finance Company be paid Rs. 500,000 each more from this fund. It will be done soon with the approval of the Monetary Board and in consultation with the Central Bank.”
TFC had approximately 147,000 depositors at the time its licence was cancelled in May last year, but those whose deposits were Rs. 600,000 or less were paid the full amount.
Minister Cabraal said that a Cabinet paper had already been submitted for the restructuring of TFC and once it was approved, steps would be taken to find an investor for the company and settle all default payments to the depositors.
“A Cabinet paper has been submitted and depending on the decision of the Cabinet, we will move forward with the restructuring,” the Minister said.
He said that in addition to TFC, six other finance companies had collapsed, all during the previous administration.
“Before 2015, we took several measures to safeguard the sector. In 2010, we started the Deposit Insurance Fund and we also started the financial sector consolidation programme, under which we reduced the number of finance companies from 58 to 20 and strengthened the sector. Unfortunately, after 2015, that programme was shelved and the sector began facing numerous problems from then onwards.”
He said that the government’s priority was to safeguard the interests of the depositors and the decision to pay an additional Rs. 500,000 showed the commitment to them.
Minister Cabraal said that the Central Bank had cancelled the licence of TFC from May 22 after all efforts to revive the company through different strategie had failed.
The government, under heavy Opposition fire over inclusion of a sex website in the Grade 6 English module, as well as overall education reforms, has decided to put on hold reforms in respect of Grade 6.
Cabinet Spokesman and Media and Health Minister Dr. Nalinda Jayatissa announced the government decision yesterday (13) at the post-Cabinet media briefing at the Information Department.
According to him, the decision had been taken at the previous day’s Cabinet meeting, chaired by President Anura Kumara Dissanayake. Dr. Jayatissa said that education reforms pertaining to Garde 6 had been put on hold until 2027.
The Minister said that other proposed education reforms would be implemented as planned. The Minister said that action would be taken against those responsible for the inclusion of a link to a sex website following investigations conducted by the Criminal Investigation Department and the National Education Institute.
The SJB and several other political parties, as well as civil society groups, have accused the government of promoting an LGBTQ agenda, through the proposed education reforms.
The Opposition grouping Mahajana Handa, on Monday, made representations to the Mahanayake Thera of the Malwatta Chapter regarding the controversial reforms, while urging their intervention to halt the project.
President Anura Kumara Dissanayake yesterday (13) vowed to go ahead with his government’s agenda, regardless of the destruction caused by Cyclone Ditwah.
Emphasising the responsibility on the part of all to contribute to the post-Ditwah recovery efforts, President Dissanayake said that he would have complete faith in the public service.
The President said so at the launch of the re-building Sri Lanka project at the BMICH yesterday.
The JVP and NPP leader said that he wouldn’t take advantage of the death and destruction caused by the cyclone or use the situation as an excuse to reverse their agenda or weaken it.
President Dissanayake said that in spite of many calling for amending the then Budget, in view of the cyclone, the government presented the proposals that were agreed before the disaster struck.
The United States has announced that it will provide the Sri Lanka Air Force with 10 US Navy TH-57 helicopters free of charge.
The announcement was made by outgoing US Ambassador Julie Chung, who stated, on social media, that the helicopters would be transferred under the United States’ Excess Defence Articles programme. The aircraft are Bell 206 Sea Ranger helicopters previously operated by the US Navy.
US sources said that the transfer was intended to strengthen Sri Lanka’s disaster response capabilities, following the devastating cyclone that struck the island at the end of 2025 and killed more than 600 people. US officials have framed the move as a humanitarian measure aimed at improving aerial rescue and relief operations.
Fair weather will prevail except for a few showers in the Uva, Eastern, Western and Central provinces and in Galle, Matara and Rathnapura districts
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Govt. bows to pressure, shelves Grade 6 reforms
AKD: Govt. agenda on track despite Ditwah disaster
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Foreign couple held over alleged biopiracy at Horton Plains
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