BOC, PB and BOI directors asked to quit
Confusion reigned on Friday at three key state institutions after President Maithripala Sirisena had asked the boards of directors at these units to be reconstituted.
Despite the notification by the President to reconstitute the Boards of Directors of the Bank of Ceylon, People’s Bank and the Board of Investment (BOI) of Sri Lanka on Wednesday, Chairmen and other directors of the two state banks and the directors of the BOI remained in office.
The Bank of Ceylon chairman is Ronald Perera PC, People’s Bank – Hemasiri Fernando and BOI – Dumindra Ratnayake.
However Mr. Ratnayake had sent his resignation letter to the Presidential Secretariat on Thursday evening, informed sources said.
Till the appointment of new Director Boards, the present chairmen and directors will continue their services without any disruption to activities of the two banks and the economy, sources said.
The sudden move to reconstitute these boards would badly affect the financial situation in the country creating cash-flow problems, a senior Treasury official said revealing that all Treasury Deputy Secretary’s bank accounts (DST’s Accounts) are maintained at the two state banks.
The sudden directive to reconstitute the Board of Directors of the BOI this week was not so sudden in a sense; it was a long time coming. The presidential order comes in the wake of controversy involving the BOI and the subject minister over an electric train project.
Friction within the country’s ‘One stop shop’ for Foreign Direct Investments (FDIs) had dogged the Government’s desperate search for foreign investors.
The anticipated dollars, sterling and euros were not flowing in as the Government anticipated, forcing it to rely on state-backed investments from China and India along with foreign borrowings.
The rest of the BOI Board of Directors are yet to tender their resignations following the President’s directive, but Minister in charge of the subject Malik Samarawickrema said these members are highly respected professionals, who served with utmost responsibility and integrity.
The BOI hit crisis levels, informed sources said, adding that at least two senior officials had been questioned on Wednesday by the CID in relation to alleged corruption in a high speed railway project.
On Wednesday, State Minister Sujeeva Senasinghe vigorously denied claims of asking a commission to approve the railway project and threatened to take to court his accusers including media organisations.
Secretary of the Ceylon Bank Employees Union (CBEU) Ranjan Senanayake told the Business Times that they had written to the President and the Prime Minister to appoint efficient professionals with integrity to the boards of the two state banks to maintain it without irregularities.
He noted that prompt action should be taken to re-constitute the two boards without paralysing banking activities.
The Board of Directors along with the chairmen of the two banks had been asked to step down by the President since the end of their term of office a couple of months ago but the ministry has extended their term on a monthly basis, he disclosed.
Alleged financial irregularities may have been the reason behind the move to appoint new board members, Mr. Senanayake said, adding that those allegations should be proved without any reasonable doubt by producing substantial evidence.