Financial Times

Harry J looms over DFCC boardroom battle
By Duruthu Edirimuni
A bruising boardroom battle is anticipated at the DFCC Bank annual general meeting scheduled in June with tycoon Harry Jayawardena, a big shareholder, getting ready to oust its chairman, Dr. Nihal Jinasena, according to stock market brokers and analysts.

They spoke about the possible threat to Jinasena's position, saying that parties connected to Jayawardena are believed to be trying to oust him for what they called "vindictive" reasons. Speculation has it that Rajan Britto, managing director of the Aitken Spence conglomerate now controlled by Jayawardena, could become the new chairman.

They said that Jayawardena, also a shareholder at Commercial Bank, wants to take control of both banks in the long run and was unsuccessful in his plan because Jinasena cast the deciding vote for Mahendra Amarasuriya who was re-elected chairman of Commercial Bank at its recent AGM.

This is said to have resulted in hostility between Jayawardena and Jinasena. "Because he was unable to oust Amarasuriya from the chairmanship of Commercial Bank, Jayawardena wants to get back at Jinasena and also strengthen his authority at DFCC," a market analyst said.

"His plan is to take control of Commercial Bank through DFCC, which is its largest shareholder with 28 percent," he said. He said once Jinasena is out, it will be easy for Jayawardena to control Commercial Bank through DFCC. "He also has a much bigger say at DFCC, which is very unhealthy for Mahendra Amarasuriya's chairmanship at Commercial Bank as well," he added.

However, analysts said that shareholders of both these banks are happy with their leadership, but they are unlikely to be able to thwart Jayawardena's plans given the tycoon's influence.

Meanwhile, a senior official at DFCC said that Amarasuriya, also a Director at DFCC, holds Jinasena in high esteem and would return the favour by casting his vote for Jinasena at the AGM.

"Amarasuriya will do his best to prevent Jinasena from stepping down, but at the same time it will be a difficult task, because Jayawardena has the majority in directors, Rienzie Wijetilleke, S. Hewage and Rajan Britto, at DFCC in his camp," he said.

He said in case Jayawardena is successful in getting Jinasena out, Rajan Britto is the likely candidate to be appointed the new chairman of DFCC. "The DFCC board already has a majority of people supporting Jayawardena and there is a good chance it will happen," he added.

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