State Bank Defaults

Sunil C. Perera, reporting from Colombo

Owner of the Siam View Hotel [SVH] of Arugambay , Dr. Fred Miller complains the Arugambay branch office of a state owned bank terminated their services and defaulted rent payments one month after the tsunami.
The Bank was located at the premises of the Siam Hotel , ArugambayA?A? and provided ample service for the area businessmen and the tourists .
Dr.Miller, served as an Engineer and the Hotel Owner who loves surfing in the Potuvil area said the BankA?a??a??sA?A? Management has still not answered his official letters regarding theA?A? monthly rent.
A?a??A?The SVH, itself the hardest hit hotel for miles around, has been politely asking for the rent due ever since. Nothing at all was paid until a letter arrived a week ago informing them that the Bank has A?a??A?No intention to re-open the Arugambay Extention office, said Dr. Miller.
For the few visitors of the Bay the handful ofA?A? hard working, hard hit survivors managed to attract in such difficult times there are no more financial services at Arugam Bay .
Indeed, the nearest cash machine is 2-3 hrs. away.A poor show – but it perhaps represents the kind of A?a??A?assistance and concernA?a??A? our East Coast location receives from faceless and very distant Colombo officers.

Since temporarily peace settled in 2002 a concerned and forward looking, branch manager of the Arugambay bank, thought to provide a better service to the influx of tourists to the Bay.
Scantly dressed females somehow looked out of place in the nearby, conservative Pottuvil at this office. Impatient surfers found waiting for currency transactions and Visa Card advances troublesome and the local staff was overworked with such transactions.

In consultation with the SVH management it was decided to rent the premises at Arugam Bay to provide a better, most welcome and valuable service to visitors to this remote region.
There are no private Banks permitted and Central BankA?a??a??s permission was granted in 2003 to open the new Extention Office at Arugambay.
For an initial period of 3 Years the ground floor offices on the main road, in the very middle of the Bay were given to the Bank at a preferential rate of just 50$/month incl. a/c and power. The Siam View Hotel refurbished the office at a cost of around 300,000 Rs./ to include an attached shower & bathroom.

On 26th December, 2004 giant floods swept the Bay and wiped off near all of the Siam View Hotel. The bank premises, however remained intact and stood up to the waves.
The interior, however was devastated and washed away. All which remained was the strong safe and the sign boards.
The State Bank never, ever came back to assess the situation, never even cleaned their own premises, but had the new safe removed in mid 2005.