Lankaputhra Development Bank expels Lasantha Gunawardena

Lankaputhra Development Bank expels Lasantha Gunawardena

Lankaputhra Development Bank expels Lasantha Gunawardena

Written by Staff Writer

06 Sep, 2016 | 10:11 am

The Daily FT reports today that Chairman of the Lankaputhra Development Bank K.H. Lasantha Gunawardena was expelled by its board on Monday, September 5,  following a ruling issued by the Monetary Board.

Director Ranil Fernando has been appointed as the acting Chairman of the Lankaputra Development Bank by the board.

The Daily FT also reports that the Monetary Bank Secretariat directed the Company Secretary of the Lankaputra Development bank to oust the chairman, after opinion from the Attorney General was taken into consideration.

Secretary to the Ministry of Public Enterprise Development, Ravindra Hewawitharana said that the Central Bank of Sri Lanka had not issued the Certificate of Eligibility accepting Lasantha Gunawardena as Chairman.

The Secretary added that the Central Bank had informed that Lasantha Gunawardena had not met the requirements of the Monetary Board of the Central Bank for the position.

Meanwhile representatives of the Jathika Sewaka Sangamaya of the Lankaputhra Bank opposed the decision to remove Lasantha Gunawardena from the post of Chairman.

The COPE report which was released on the 23rd of March had revealed that several irregularities had taken place at the Lankaputhra Bank due to the intervention of Lasantha Gunawardena.

The report says that Gunawardena had failed to follow proper procedures when granting loans adding that he had not taken any measures to address the fact that the non-performing loan rate stood as high as 39 percent.

The COPE report further notes that Lasantha Gunawardena had decided on interest rates according to his own wishes when granting loans to certain customers.

The report adds that 64 officials who did not meet the required qualifications had been recruited to the bank between January 2015 to March 2016.

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