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Central Bank officials say they will prosecute directors of the failed Pramuka Savings and Development Bank (PSDB) which is being liquidated by the regulator. The Attorney Generals department is currently examining provisions available in the Companies Act and the Banking Act on holding the directors and senior management of Parmuka responsible for its collapse.
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The Pramuka Bank failed in 2002 under a mountain of bad loans but its liquidation was held up after depositors went to court demanding the Central Bank consider all options before winding it up.
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The Central Bank however has now started the process of liquidating PSDB nearly two years after its closure.
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The bank is expecting to get a court clearance to start liquidation if depositors don’t go to court again to stop the move.
Central Bank governor Sunil Mendis said they are also looking at taking action against the directors of the bank but did not give any details about the planned action.
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But sources close to the liquidation proce