Pramuka Bank re-opens as SL Savings Bank

Hathoon Sheriffdeen

The former Pramuka Bank will be re-opened in March 10th with a new outlook as Sri Lanka Savings Bank with hundred percent of the bank's ownership being held by government.

The new location of the bank will be at D, S Senanayaka Mawatha, Boralla. The Ministry of Finance has given a certificate of guarantee with no interest, worth Rs 1.5 billion to on the banking business of the newly re-opened Sri Lanka Savings Bank in future, Secretary, Sri Lanka Treasury Board, Dr, T, B Jayasundara said at a press meeting held at Ministry of Finance.

"The renamed Sri Lanka Savings Bank will be pay back the investments of the customers held by the former Pramuka Bank on the time of its liquidation, in six month time of the reformed Sri Lanka Savings Bank."

The officials of the bank said, investments less than Rs one lakh will be repaid on the call of the customers or can be re-invested under the portfolio of the newly opened Sri Lanka Savings Bank from June.

There are 12000 account holders of the former Pramuka Bank who hold an investment worth of less than Rs one lack and they will be in this category.

There are 1923 account holders, who hold more than Rupees one lakh can withdraw up to one lakh from June. There were 15437 account holders at the time of the liquidation of the Pramuka Bank.

From these accounts the individual customers and corporate customers held 14441 and 1996 respectively. The worth of the individual accounts was Rs 3 Billion at the time, Director, Sri Lanka Savings Bank ,Thilak Wannigama said.

These deposits were deposited on the debenture and various secured bonds after the collapse of the Pramuka Bank, he said.

General Manager, Sri Lanka Savings Bank, Sarath Weerathunga said that since the new Sri Lanka Savings Bank's deposits will be invested on treasury bills and other government securities, the investors have no fear of losing their money in future. Also we have a guarantee in that the total ownership of the new bank will be held by the government.

The investments of Sri Lanka Savings Bank will obtain 7 per cent interest, he said. In the meantime the officials at the meeting said the interest would be marginal and regulated on the basis of the new bank's earnings accordingly.

"In future the bank will be acting as another government owned saving banker of the country." he said