Harry J fails to block Amarasuriya’s party

A last minute attempt by business tycoon Harry Jayawardene to block a felicitation ceremony on Thursday for Commercial Bank Chairman Mahendra Amarasuriya who was elected Lions International President, was thwarted through the intervention of some of the bank's directors and senior management team.

Jayawardena, who controls a sizable stake in the bank through connected parties, wrote to the directors of Commercial Bank on July 2 requesting them not to use the bank's funds to felicitate Amarasuriya on his new appointment.

"We write to you as significant shareholders of Commercial Bank of Ceylon Limited. It is learned that a felicitation is to be held on account of the appointment of the Chairman of CBSL, Mahendra Amarasuriya as an International Director of Lions Clubs. The invitations have been posted to the invitees. Whilst congratulating him on his appointment, we believe it is a personal matter. We sincerely hope that the bank is not using the shareholders' funds to finance the costs of this function which is a private matter," he has said in his letter writing as the Chairman of the Distilleries Corporation (DCSL), shareholders of the bank.

He has requested the directors to refrain using the bank's funds to finance the function, saying that there is no benefit to the customers or the shareholders in felicitation of an appointment that has no connection to the activities of the bank or any other benefit of the bank. Jayawardena has warned that if this plan is executed irrespective of DCSL opposition, they will be compelled to garner other shareholders' support not to approve this expenditure at the next AGM. "We will also bring this expenditure which we believe is a waste, to the notice of all other shareholders at a time the country is facing in general a lot of difficulties," he has concluded.

Despite the opposition Amarasuriya was felicitated by the directors of Commercial Bank at the Cinnamon Grand hotel with key customers in attendance while Amitha Gooneratne, the bank's Managing Director delivered the welcome address.

Amarasuriya in his speech said the proceedings of the day started on a sour note because 'an influential shareholder tried to block the function.' He said that he had wanted the function cancelled, but the directors and a team of the senior management team insisted that the proceedings should be executed as planned.

"We looked at it as an opportunity to promote the image of the Commercial Bank and interact with the customers, who were 95 percent of the invitees," a senior manager told The Sunday Times FT.

He said that some senior officials had visited Amarasuriya on Thursday afternoon to persuade him to attend the felicitation. "The chairman had wanted it cancelled, asking us to place an advertisement in the paper and inform the invitees of the cancellation, but we explained that it was that evening and was impossible to do so. We also said that in the event the function is cancelled, the damage to the bank through loss of reputation cannot be quantified," a senior official said.

He said that the directors had decided that if necessary they will contribute their personal cash to fund the felicitation. "Some of the customers who listened to Amarasuriya that night said that they shall contribute as well, if Jayawardena insists on not approving the funds," he added.