EXCLUSIVE: Notice on several commercial bank heads to resign likely to be challenged

March, 30, 2015

A certain group is currently considering whether there are possibilities of taking legal action challenging the Finance Ministry ‘request’ for the heads of several private commercial banks to resign, www.adaderanabiz.lk learns from very reliable sources.

The Finance Ministry had recently informed several higher ups appointed to private commercial banks where the government is a stakeholder to resign from their respective posts.

Following this notification, Sunil Wijesinha resigned as Chairman of National Development Bank and Dr. Rani Jayamaha resigned as Chairperson of Hatton National Bank.

However, it is learned that the Finance Ministry has requested several other prominent private commercial bank heads to also resign.

A veteran in the banking sector who remained to be anonymous told www.adaderanabiz.lk that it was not ethical to attempt to control any private commercial bank while amalgamating the shares owned in the organization by various government institutions.

He pointed out that the Securities and Exchange Commission should first clarify whether or not the Finance Ministry has the authority to request the heads of these private commercial banks to resign before they retire.

Under such circumstances, a certain group is considering whether there are possibilities of taking legal action challenging the Finance Ministry ‘request’ for the heads of several private commercial banks to resign after the Ministry having amalgamated the shares in these banks owned by various government owned institutions.

Nearly 33 per cent of shares in the National Development Bank and nearly 28 per cent shares in the Hatton National Bank are owned by the government.