Central Bank's Role in Finance Companies, and the Downfall of the Industry.

Hi Guys,

Starting from the Celynco Groups, and GK Saga the story is not over Yet, followed by Industrial Finance and now CIFL, I dont know who will follow this Lot, But who suffer this drama and who is responsible, All the retired Government Servants and Small Entrepreneurs Invest their money to gain higher returns. They mainly depending on the fact that CBSL of Sri Lanka Keep a close watch on these companies and they regulate them very well, But we all notice in the recent past that many companies manipulated their accounts and inflated the assets to Cheat the Public in order to raise the Deposits, Once finance Company raised money from the market to Purchase their Shares at 24% Per month and still they are paying it. But CBSL never wants to inquire or Check the Financial sources that they want to purchase shares of a Finance Company.

Other Magic is the Current Drama of Micro Financing Business, they keep Lending and doubling the Portfolio, if you go in to villages they have obtain MF loans from 4-5 Companies and they keep on issuing more and more loans to pay back the older ones, One day this bubble will Blast and all these companies will collapse overnight. If you see their financials they have almost 0% NPL rations and all other good things, They never predict or project negative Feed back, But where is the CBSL involvement in Monitoring these Companies. At the moment they cant Control some of the Giants but facilitating them. What happen in the Case of CIFL? where were they in CIFL balance Sheet one single entry for a project of 1.5 Billion Grown over 5 Years, Where were they when it comes to Monitoring, What happens at the Ed of the Day is poor Depositors have no way to go, or No one to look Upon....

shehani.perera.1612 wrote:Hi Guys,

Starting from the Celynco Groups, and GK Saga the story is not over Yet, followed by Industrial Finance and now CIFL, I dont know who will follow this Lot, But who suffer this drama and who is responsible, All the retired Government Servants and Small Entrepreneurs Invest their money to gain higher returns. They mainly depending on the fact that CBSL of Sri Lanka Keep a close watch on these companies and they regulate them very well, But we all notice in the recent past that many companies manipulated their accounts and inflated the assets to Cheat the Public in order to raise the Deposits, Once finance Company raised money from the market to Purchase their Shares at 24% Per month and still they are paying it. But CBSL never wants to inquire or Check the Financial sources that they want to purchase shares of a Finance Company.

Other Magic is the Current Drama of Micro Financing Business, they keep Lending and doubling the Portfolio, if you go in to villages they have obtain MF loans from 4-5 Companies and they keep on issuing more and more loans to pay back the older ones, One day this bubble will Blast and all these companies will collapse overnight. If you see their financials they have almost 0% NPL rations and all other good things, They never predict or project negative Feed back, But where is the CBSL involvement in Monitoring these Companies. At the moment they cant Control some of the Giants but facilitating them. What happen in the Case of CIFL? where were they in CIFL balance Sheet one single entry for a project of 1.5 Billion Grown over 5 Years, Where were they when it comes to Monitoring, What happens at the Ed of the Day is poor Depositors have no way to go, or No one to look Upon....

@ shehani.perera.1612,

Since u talked about Wayne issue in another threat, u seems to be inside/ participant of CIFL drama from start, may not gained any benefit. Do u blame urself? if CBSL control u guys den u could have saved CIFL, is that what u r saying? For me da main part of the CIFL drama is invisible to public. U seems to be blaming others for their mismanagement. Your intention may be get white certificate for yellow people to start another company/drama...

I think what shehani was trying to tell is quite valid.

In CIFL case CBSL allowed the owners to exit at the expense of retailers.

Jana1 wrote:

shehani.perera.1612 wrote:Hi Guys,

Starting from the Celynco Groups, and GK Saga the story is not over Yet, followed by Industrial Finance and now CIFL, I dont know who will follow this Lot, But who suffer this drama and who is responsible, All the retired Government Servants and Small Entrepreneurs Invest their money to gain higher returns. They mainly depending on the fact that CBSL of Sri Lanka Keep a close watch on these companies and they regulate them very well, But we all notice in the recent past that many companies manipulated their accounts and inflated the assets to Cheat the Public in order to raise the Deposits, Once finance Company raised money from the market to Purchase their Shares at 24% Per month and still they are paying it. But CBSL never wants to inquire or Check the Financial sources that they want to purchase shares of a Finance Company.

Other Magic is the Current Drama of Micro Financing Business, they keep Lending and doubling the Portfolio, if you go in to villages they have obtain MF loans from 4-5 Companies and they keep on issuing more and more loans to pay back the older ones, One day this bubble will Blast and all these companies will collapse overnight. If you see their financials they have almost 0% NPL rations and all other good things, They never predict or project negative Feed back, But where is the CBSL involvement in Monitoring these Companies. At the moment they cant Control some of the Giants but facilitating them. What happen in the Case of CIFL? where were they in CIFL balance Sheet one single entry for a project of 1.5 Billion Grown over 5 Years, Where were they when it comes to Monitoring, What happens at the Ed of the Day is poor Depositors have no way to go, or No one to look Upon....

@ shehani.perera.1612,

Since u talked about Wayne issue in another threat, u seems to be inside/ participant of CIFL drama from start, may not gained any benefit. Do u blame urself? if CBSL control u guys den u could have saved CIFL, is that what u r saying? For me da main part of the CIFL drama is invisible to public. U seems to be blaming others for their mismanagement. Your intention may be get white certificate for yellow people to start another company/drama...

Dear Jana,

I was not an employee of CIFL but Our Company worked very closely with CIFL, Aspic and Other related Companies, What i simply tried to tell was if regulators control this operation earlier this would not have happened, That's all, I am just an employee of this company and didnt try to whitewash any one but trying to point out how it started.

Thanks

What were the socalled Auditors (CEMA or CIA) doing all these days? The general public look to them when it comes to authenticity of accounts. ?Have they become puppets in the hands of corrupt managers of these companies.

K.Haputantri wrote:What were the socalled Auditors (CEMA or CIA) doing all these days? The general public look to them when it comes to authenticity of accounts. ?Have they become puppets in the hands of corrupt managers of these companies.  

Yes Sir, This is what i am asking, Where were all these experts CBSL, Auditors, Rating agencies, CIA?

hariesha wrote:I think what shehani was trying to tell is quite valid.

In CIFL case CBSL allowed the owners to exit at the expense of retailers.

water runs from where its low.....

Thats the bitter truth when it come to retailers...