It has come to my attention about an article dated 17.02.2019 published in LankaCNews website, stating to be of a letter addressed to me by Hon. Wimal Weerawansa, MP, regarding transactions pertaining to ETI Finance Ltd. Although, I have still not received such a letter, I wish to clarify the below points with respect to the said webpage.

1. Central Bank of Sri Lanka (CBSL) issued a press release on 02.01.2018 regarding regulatory actions taken on ETI Finance Ltd (ETIF) and not on 01.02.2018, as stated in the above webpage. Further, the said press release did not state that CBSL officers were appointed to supervise the affairs of ETIF. Instead, a Panel was appointed by the CBSL which is chaired by a retired CBSL officer and two retired bankers as members of the Panel.
2. CBSL has not come to an agreement with one Mr Subaskaran Allirajah or any other individual as stated in the above webpage. We have always maintained that all transactions/negotiations to sell assets should be conducted by ETIF itself with relevant parties.
3. CBSL did not intervene in the said transaction as mentioned in the above webpage and all that CBSL did was granting necessary regulatory approvals and taking necessary actions to obtain a fair price for the assets, based on a request made by the directors of ETIF. Accordingly, ETIF was persuaded to obtain a higher price than the initial bid submitted.
4. However, CBSL granted a conditional approval for a proposal submitted to revive Swarnamahal Financial Services PLC (SFSP) which was submitted by Ben Holdings (Pvt) Ltd, a locally incorporated entity, through SFSP. Together with the said approval, CBSL has requested information including those on the financial strength of the investor, which has not yet been submitted to CBSL. There was no agreement to infuse USD 12 million to SFSP as stated in the above webpage.
5. As clearly stated in our press release dated 02.01.2018, the Board of Directors of ETIF continued to remain and the directors were informed to conduct all negotiations with the investors and depositors. Accordingly, the stance conveyed by CBSL with regard to the directors of ETIF and their involvement in the affairs of the company remains unchanged.
6. Sale of EAP entity was not approved by CBSL through its letter dated 27.02.2018 or through any other approval. The Monetary Board of CBSL only approved sale of selected assets of ETIF and the total consideration is USD 75 million. Though the initial approval was to transfer all identified assets at once, since the buyers paid the amount in tranches assets equivalent to each tranche received were transferred.
7. CBSL has not acted to give a one-year period to remit the balance USD 16 million after remitting the USD 54 million, and will not do so at any time. What actually happened was the buyer remitting USD 16 million on 25.10.2018 to a local bank and subsequently withdrawing the same due to certain misunderstandings. However, it has been informed that this amount would be re-remitted before end of February 2019.
8. Registration of entities acquired by the buyers should be done in accordance with the relevant laws and regulations applicable to regulating such entities. It should be done by the party acquiring the assets.
9. When remitting the funds, the relevant banks have conducted enhanced due diligence and the banks were informed to accept the funds only if they are satisfied on the said due diligences. The banks have confirmed that they have acted accordingly and credited the funds to the relevant accounts.
10. There were no reports which were presented to us as to the parties purchasing the assets were involved in unlawful activities, during the inquiries done on the transaction.
11. In the event the full USD 75 million agreed for the transaction is not received (as per current discussions USD 70 million should be received), SFSP will remain with ETIF in lieu of the balance USD 5 million. Anyway, alternative measures for SFSP are being considered currently.
12. CBSL’s statutory powers are limited to the regulated financial institutions. Authority over registration of lands and media institutions are with the relevant authorities in this regard. As such, CBSL has repeatedly instructed all parties to conduct the transaction to purchase, transfer assets subject to applicable laws and regulations, when granting approval and at other times.
13. CBSL only dealt with SFSP regarding approving the business plan for SFSP and not with any other party as stated in the above webpage.
14. As mentioned by us earlier, at the time of granting approval to ETIF to dispose its assets for USD 75 million, there was no proposal from any other party submitted to the CBSL.