Minister Ravi Karunanayake Pic by Ravindra Dharmathilake

The government yesterday said it will pay the first tranche of disbursement of payment to the deposit holders of the defunct Golden Key Credit Card Company Ltd (GK) tomorrow at a function to be held at the BMICH. The event is scheduled to be attended by President Maithripala Sirisena, Prime Minister Ranil Wickremasinghe and the Minister of Finance Ravi Karunanayake.

The cabinet of ministers gave its approval last week to the payment schedule proposed by the Finance Minister in order to solve the long standing issues faced by the GK depositors as per the proposal made by the Minister of Finance through his interim budget.

Accordingly, the depositors who have had their account balance up to Rs. 2 million will be paid within one month from July 24th.

The General Treasury will provide Rs. 544.3 million needed for this first tranche and the recovery of this fund will be made through the liquidation of the assets of the GK Ltd with the permission of the Supreme Court where a petition in this regard is being heard.

The Supreme Court had earlier given a ruling to pay 41 percent of the account balance to the depositors. Earlier in January this year, all depositors of the GK Ltd were given an interim payment up to Rs 300,000.00 irrespective of their account balance.

The government has also decided to settle the dues of those who have deposits below Rs. 10 million within the next two months and those of above Rs. 10 million within one year.

Accordingly, a further sum of over Rs. 7 billion is needed and Minister Karunanayake has proposed that funds for these payments could be recovered from liquidation of the assets of the Golden Key and the profits transferred from the CBSL.

The new Government, in order to solve the long standing problems that existed in the non-banking financial institutions had stated that it would provide relief to depositors through the intervention of the Central Bank of Sri Lanka (CBSL) and the Finance Ministry.