Govt. steps in to control commercial banks
It’s happening! The Government is slowly but surely getting its way of ensuring its nominees become chairmen of some of the six commercial bank boards slated for this development.
Last week, as exclusively reported by the Sunday Times on March 29, N.G. Wickramaratne was appointed as a director and this week became the chairman of NDB.
Government nominee Ananda Athukorala was this week appointed a director at DFCC Bank and is now set to take over as chairman.
Insiders say that Seylan will follow suit with senior banker Ravi Dias set to take over as the new chairman. “The Insurance Corporation has written to us requesting Mr. Dias to be appointed to the Seylan board (first as a director) as its nominee director. This will be permitted,” a Seylan official told the Business Times.
However the Commercial Bank was resisting these moves though the Government, through various state agencies, has a sizable stake and can nominate its own representatives. Lawyer R. Nanayakkara has been nominated to this bank board to eventually take over as chairman.
There was also no clear indication at the HNB where senior attorney Rienzie Arsekuleratne was nominated as the government nominee director and future chairman.
Sampath Bank is also strenuously resisting moves to accommodate senior banker Amitha Gooneratne as a director representing the interests of the EPF stake.
Bank sources said the board discussed the EPF-cum-Government request and wrote back saying board positions are based on a clearly laid out process implying that the EPF is unlikely to get a board position.