Pramuka Bank which was set to be liquidated will be reopened as a state bank before January 31, 2006 after acquiring its assets and responsibilities to the Central Bank, State Banks Development Minister Wijedasa Rajapakse told Parliament yesterday.
He said the Government has taken this decision to keep the public confidence on the bank system which considered as the backbone of country`s is economy.
The Government is of the opinion that if erosion of public confidence on the bank system will make negative effect.
`That is why the Government took this decision to reopen the Pramuka Bank as a State bank.
Minister Wijedasa Rajapakse made these remarks responding to a question raised by Jathika Hela Urumaya Parliamentary Group Leader Ven. Athuraliye Ratana Thera, on the liquidation of Pramuka Bank.
Minister Wijedasa Rajapakse also said according to investigations it has been proved that Central Bank has issued licences for people who are not qualified to operate a bank.
Participating at the committee stage budget, the Minister stated that Government has already taken steps to open the Pramuka Bank as a State bank. `The case now being heard in courts is the only impediment for this,` the Minister added.
He stated if the Pramuka Bank was liquidated the depositiors will receive only 25 per cent of their deposited money.
`Through this move the depositors will be guaranteed of their full deposited money back,` the Minister added.
He said the UPFA government was not responsible for the problem, the government took this decision considering the plight of the people who deposited their money in the Pramuka Bank.