Ananda Atukorala takes over as Chairman NDB

Senior banker Ananda Atukorala has been appointed an independent non-executive Chairman of the National Development Bank (NDB) after a tussle between the Government and the former board on the appointment of a new Chairman.

Mr. Athukorala who counts more than 35 years as a banker awaits Central Bank approval for his appointment.

His appointment comes in the wake of the retirement of NDB Chairman N.G. (Tanky) Wickramaratne who retired before reaching the age of 70 next month.

The new board will also be looking out for a director/CEO from within the bank following the sudden retirement of Rejendra Theagarajah. A source told Business Times that they will look for a CEO from within the bank, but failing which they will look for a candidate from another bank.

Mr. Theagarajah’s resignation effective from November 30 to ‘pursue wider interest’, an announcement by the bank to the Colombo Stock Exchange said on Friday, created ripples at NDB.

A former CEO of HNB, Mr. Theagarajah who was head hunted for NDB resigned after serving three years in the post while its chairman N.G. (Tanky) Wickremaratne is stepping down with effect from August 31.

‘Pursuing wider interests’ is a standard euphemism used in corporate circles for various issues faced by individuals or companies. The NDB has been on a confrontational course with the government in recent weeks over the appointment of a chairman to take over from Mr. Wickremaratne with names proposed from within the bank and outside being rejected by the Government which has a majority stake through state agencies.

One of the names recommended was that of Ashok Pathirage, but the Government felt that the bank should have an independent Chairman. Mr. Pathirage is a major share-holder of the bank.

The NDB cancelled its Extraordinary General Meeting (EGM) scheduled for last July saying that some of its shareholders won’t back the resolution to amend the Articles of Association which states that NDB’s chairman should be an independent director, with the government – the bank’s largest shareholder - reiterating that the NDB chairman should be independent in line with good governance.

The new board will also be looking out for a director/CEO from within the bank following the sudden retirement of Rejendra Theagarajah