State bank boards remain in office; more talks soon

The Public Enterprise Ministry this week said that the chairmen and directors of the two state banks would remain in office until the President’s memo seeking the reconstitution of the boards was further discussed with the President and the Prime Minister.

The chairmen and boards of directors of the Bank of Ceylon and People’s Bank remained in- situ despite the Presidential request that the boards be reconstituted. All the appointments to these boards were done by UNP ministers

since January 2015. Ministry sources told the Sunday Times that the President had only requested the minister, who is the appointing authority, to reconstitute the boards. The President had no powers to remove them.

Ministry Secretary Ravindra Hewavitharana in a statement said: "Steps will be taken in the near future in consultation with the President and the Prime Minister to reconstitute the boards."

At a ceremony, Bank of Ceylon Chairman Ronald Perera told reporters he had not been asked by the minister to tender his resignation. He said the minister would discuss the reconstitution of the boards with the President and the Prime Minister after the premier returned from New Delhi.

People’s Bank Chairman Hemasiri Fernando, who is also the Chief of Staff at the Presidential Secretariat, was in Batticaloa.

Public Enterprise Minister Lakshman Kiriella told the Sunday Times yesterday that he had met the President and discussed the reconstitution of the two boards.

He said the President had suggested that they could re-discuss the matter within the coming week and reconstitute the boards.

"There were some inaccurate reports going around that the boards stand dissolved. This type of reports could adversely affect the ratings internationally," Mr Kiriella said.