Three Seylan Bank executive directors including its deputy chairman R. Renganathan resigned on Tuesday in line with new Central Bank regulations dealing with the ages of the directors and the number of directors in Licensed Commercial Banks (LCBs), Seylan Bank sources said.

“Mala Sabaratnam and A. D. Jegasothy have also resigned,” a Seylan source said. He said this decision was taken to balance the proportion of the executive and non executive directors on the bank board.
This is probably the first time directors of a bank are stepping down to conform to the new Central Bank rules.

Giving possible reasons for the resignations, he said the three directors could have continued for another three years under the rules but if all the 12 directors at Seylan chose to resign at the same time this will not be good for the stability of the bank. “To get ready for these regulations various directors will need to resign at different times,” he noted.