Election hiccups for Ceylinco, Sakvithi depositors

By Elmo Leonard

Faulted depositors of fallen Ceylinco, Sakvithi and lesser known finance companies in election hiccups say they are now hopeful of a `better deal’. But, they differ as to how they should be compensated.
Investors of F&G Real Estate Co Ltd and F & G Property Developers Ltd, yet, think they had invested in Central Bank (CB) registered companies. They claim that before they made their deposits, they were told that the parent F&G Company Ltd being CB registered, their subsidiaries also fall in line.
Some depositors suggested that all property and buildings under the Ceylinco Group be sold and depositors’ capital and interests, made good. Asked, then what would be the plight of the employees of the existing Ceylinco companies, they gave diverse answers. One said that “some of the innocent employees of these companies” had found other jobs. Others said that their plight was worse than those who would have to lose their jobs. All depositors LAKBIMAnEWS spoke to did not wish to be named, fearing their deposits would be held back even further.
Some were not happy that the parent companies and the subsidiaries they invested in continue in business “as their assets could be sold.” Others lived in “expectation of better judicial decisions in the run up to, and after the elections.” Ceylinco Investments and Reality (Pvt) Ltd, Union Place, Colombo, is a CB registered company with Rs3.2 billion investment and 3,200 deposit holders. The poor and the middle class make up 90 percent of its investors. They said, they depend on the monthly interest they get.