ETI Director Nalaka Edirisinghe, the fourth suspect in the Swarnamahal Jewellers Ltd. case has surrendered to the Criminal Investigation Department (CID) at around 9.00 am this morning.
Attorney-at-Law representing Nalaka Edirisinghe said his client could not surrender yesterday due to ‘health reasons’.
ETI depositors who gathered near the CID premises stressed that legal action must be taken against the arrestees without granting bail.
Last evening (January 05), Attorney General Dappula de Livera had directed the Inspector General of Police (IGP) to conduct a criminal investigation against the Directors of the ETI Finance and Swarnamahal Jewellers Ltd. over their involvement in operating an unauthorized finance business.
Accordingly, former Directors of Swarnamahal Jewellers Jeewaka Edirisinghe, Anjalee Edirisinghe and Asanka Edirisinghe were arrested by the CID, acting on further directives from the Attorney General.
Investigations are being carried out over the unauthorized acceptance of deposits worth Rs 13.7 billion, misappropriation, and money laundering, Attorney General’s Coordinating Officer State Counsel Nishara Jayaratne said yesterday.
Attorney General has also decided to forward indictments against the Directors of Swarnamahal Jewellers for conducting an unauthorized finance business.
In a statement, Police Spokesperson DIG Ajith Rohana said the Attorney General has given directives to produce the arrestees before Colombo Fort Magistrate’s Court.
Depositors of Swarnamahal Financial Services PLC (SFSP)and ETI Finance Ltd. (ETIF) had been levelling allegations against the two establishments over various irregularities which took place since 2011.
President Gotabaya Rajapaksa, on the 9th of January last year, appointed a Presidential Commission to probe wrongdoings, irregularities and malpractices of ETIF and SFSP. The panel was chaired by Supreme Court Judge (Retired) K.T. Chithrasiri.
Serious financial issues faced by the ETIF led to the intervention of Central Bank in the sale of assets in order to settle its depositors. The assets included SFSP, EAP Broadcasting Company Limited with its subsidiaries; EAP Films and Theatres Ltd (and its subsidiaries); Hotel Sapphire (Pvt.) Ltd; Swarnamahal Jewellers Ltd; and other immovable assets owned by the ETIF.
Later, the business of ETIF and SFS were suspended with effect from 13th of July 2019, following a decision taken by the Monetary Board of Central Bank.
On the 25th of July, the Central Bank began paying compensation of Rs. 600,000 per ETIF and SFSP depositor from the Sri Lanka Deposit Insurance and Liquidity Support Scheme (SLDILSS).
The report of the Presidential Commission was meanwhile handed over President Gotabaya Rajapaksa on the 8th of October.
