Cabraal’s harangue boomerangs

Minister of State for Finance Ajith Nivard Cabraal said in Parliament yesterday that six finance companies had collapsed during the last government period. It was also revealed that 256,335 depositors have been made destitute due to this. A report by the Central Bank reveals that these finance companies faced a severe crisis during the tenure of Ajith Nivard Cabraal as the Governor of the Central Bank of Sri Lanka. The 2015 Annual Report of the Central Bank of Sri Lanka states:
“During the year 2015, the Department of Non-Bank Financial Institutions Supervision conducted inspections of 34 licensed finance companies / specialized leasing companies. Inadequate allocations for debt losses, weaknesses in internal governance, non – compliance with corporate good governance directives, dealings with stakeholders, concentrated risks on multiple services and business continuity of institutions were key findings of these investigations.
The report further states, “Several companies, which were negatively affected by the liquidity crisis of 2008, continue to face capital and pollution shortages” and reveals that a large number of financial companies were in crisis.