The Hon. (Dr.) Anil Jayantha

¶ 01 On behalf of the Minister of Finance, Planning and Economic Development, I reply:

¶ 02 (a) (i) In July 2020, three complaints regarding Privelth Global (Pvt.) Limited were received by the Central Bank of Sri Lanka (CBSL) from individuals residing in Eravur and Nintavur. Accordingly, the Department of Supervision of Non-Bank Financial Institutions of the CBSL commenced an investigation under powers conferred by Section 42 of the Finance Business Act, No. 42 of 2011. During this investigation, based on a report sent to the CBSL by the Financial and Commercial Crimes Investigation Division of the Police dated 28.07.2021, Privelth Global (Pvt.) Limited had operated in Kalmunai, Marudamunai, Samanthurai and Pottuvil.

¶ 03 (ii) During the investigation, the team inspected the head office of Privelth Global (Pvt.) Limited at Colombo 03 and recorded a statement on 15.09.2020 from one of its Directors, Ahmed Shereem Mohamed Shihab. He stated that from 2014 to 2020 the company obtained loans from individuals and made repayments; as at the date of statement, approximately Rs. 800 million had been repaid. Further, according to the Police report of 28.07.2021, the company had collected about Rs. 1,356 million from 1,150 individuals.

¶ 04 (iii) While the CBSL investigation was ongoing, the Directors, Ahmed Shereem Mohamed Shihab and his spouse, Fatima Farsana Markar, were apprehended by the Indian Coast Guard while attempting to flee to India, subsequently deported, and, as revealed to the CBSL, were remanded in Sri Lanka following inquiries by the Police.

¶ 05 (b) (i) Upon conclusion of the investigation under the Finance Business Act, if it is determined that Privelth Global (Pvt.) Limited has carried on finance business in contravention of the Act, the matter has been referred to the Hon. Attorney-General under Section 64 of the Finance Business Act, No. 42 of 2011 for the consideration of instituting legal proceedings in the High Court.

¶ 06 (ii) and (iii) Following institution of proceedings by the Hon. Attorney-General, matters relating to a mechanism for the settlement of liabilities to all external parties of the institution, including depositors, would be determined in judicial proceedings under Section 56(1) of the Finance Business Act.

¶ 07 (iv) Privelth Global (Pvt.) Limited is not a licensed institution under: - the Banking Act (as amended by Act No. 30 of 1988) to carry on banking business; - the Finance Business Act, No. 42 of 2011, to accept public deposits and carry on finance business; - the Microfinance Act, No. 6 of 2016, to conduct microfinance business; or - the Mortgage Act (Securitization/Leasing laws—reference in the OCR appears to the Finance Leasing Act, No. 56 of 2000) to conduct finance leasing.

¶ 08 It has not obtained any license from the CBSL and, therefore, is not subject to regulation and supervision by the CBSL as a licensed entity. However, where entities or persons accept deposits from the public in contravention of the Finance Business Act, the CBSL conducts investigations and takes legal action under the Act.

¶ 09 (c) Does not arise.