Softlogic Finance Company is facing a threat of a financial meltdown, a senior official from the Central Bank of Sri Lanka said.

The crisis is due to the financial mismanagement on the part of the company’s Managing Director Ifthikar Ahamed. He had served at the NDB Bank and was removed from the institution due to a financial fraud.

Although the Central Bank should have carried out an inquiry into the appointment of a person with such a notorious background into the board of a financial institution, such an inquiry has not yet been conducted.

A proper investigation is not being carried out into the company due to the close friendship between the head of Softlogic Ashoka Pathirage and Central Bank Governor Nivard Cabraal.

Ashoka Pathirage is also closely affiliated to several senior members of the government and makes monthly payments to several government and opposition politicians on a request made by a senior government official.

The senior official from the Central Bank who gave us the information said there was a threat of about 10 financial institutions facing financial meltdowns like the Ceylinco Group due to financial irregularities.