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Golden Key Credit Company Limited was a fully owned subsidiary of Ceylinco Consolidated, one of the largest business conglomerates in Sri Lanka. It was a financial institution which pioneered the credit card industry in Sri Lanka in the early nineteen eighties and was responsible for setting-up the initial merchant network that has now expanded and is currently utilized by almost all the credit card operators in Sri Lanka. In addition to issuing a variety of domestic credit cards the company also issued Privilege/Discount cards for various clienteles (Golden Key Credit Card Company, (2002)).
The company issued credit cards in a distinct way than the conventional credit card operators. According to the Golden Key scheme, which was a landmark system when it started, credit cards were provided on deposits and credit could be withdrawn based on the deposit. This approach was almost similar to the debit card practice followed by banks.
The Golden Key Credit Card Company Ltd. (GKCCCL) collapsed over four years ago, around December 2008. Before its collapse the board of directors including Chairman Lalith Kotelawala had promised the depositors that they would be paying 100% of their deposited amounts. Without any money being paid till 2009, despite Lalith Kotelawala personally promising over 7,000 depositors on 23 December 2008 that the company would pay back the money within three months, Golden Key Depositors' Society (GKDS) was formed and filed a Fundamental Rights case in the Supreme Court on 17 March 2009. On 30 March, the Supreme Court admitted that there had been a breach of fundamental rights of the depositors and decided that the board of directors including Lalith Kotelawala were responsible for theft. At the time of the collapse, 9,128 customers had deposited over Rs 26 billion in the company.
The Financial Times has been informed that Golden Key Credit Card Co. Ltd. was involved in accepting public deposits offering higher interest rates ranging from 24%
The company issued credit cards in a distinct way than the conventional credit card operators. According to the Golden Key scheme, which was a landmark system when it started, credit cards were provided on deposits and credit could be withdrawn based on the deposit. This approach was almost similar to the debit card practice followed by banks.
The Golden Key Credit Card Company Ltd. (GKCCCL) collapsed over four years ago, around December 2008. Before its collapse the board of directors including Chairman Lalith Kotelawala had promised the depositors that they would be paying 100% of their deposited amounts. Without any money being paid till 2009, despite Lalith Kotelawala personally promising over 7,000 depositors on 23 December 2008 that the company would pay back the money within three months, Golden Key Depositors' Society (GKDS) was formed and filed a Fundamental Rights case in the Supreme Court on 17 March 2009. On 30 March, the Supreme Court admitted that there had been a breach of fundamental rights of the depositors and decided that the board of directors including Lalith Kotelawala were responsible for theft. At the time of the collapse, 9,128 customers had deposited over Rs 26 billion in the company.
The Financial Times has been informed that Golden Key Credit Card Co. Ltd. was involved in accepting public deposits offering higher interest rates ranging from 24%