"The difficulties of Seylan Bank presented a potential danger to the stability of the financial system"

A statement issued by the Central Bank said that it has also decided to discontinue the services of the Board of Directors of Seylan Bank.

Seylan Bank PLC has faced difficulties “with regard to deposit withdrawals and ensuing liquidity problems”, the statement said.

“The difficulties of Seylan Bank PLC presented a potential danger to the stability of the financial system. Therefore, the Monetary Board is of the view that immediate measures require to be taken to stabilize the financial system,” it added.

Golden Key

Assuring that the customers' deposits are safe, the Central Bank advises the customers to continue their normal transactions with the bank.

Meanwhile, a court in Colombo has rejected an application to suspend Golden Key Credit Card Company.

	Reports say the company is facing a major financial crisis

A contractor from Panadura has filed an application seeking a court order to publish advertisements in the Gazette and newspapers announcing the suspension of the said company.

Colombo Commercial High Court judge ruled that such announcements would lead for the public to decide that the company has been declared bankrupt.

The petitioner, Sumith Wijepala, said Golden Key owed him nine million rupees for repairs he did at the company's headquarters.

As the Golden Key is facing financial crisis, Mr. Wijepala said he finds it difficult to claim his due payments.

The judge also ruled to remove the petition from future hearings as the petitioner has failed to provide adequate documents.

There have been media reports that the credit card company is facing a major crisis and having difficulties in paying back the depositors.

Both Golden Key and Seylan Bank are members of the Ceylinco Group of companies.