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Lankan to head Colombo's Standard Chartered bank Vishnu Mohan will succeed Wasim Saifi, the present Chief Executive Officer who is leaving the group to head another bank in the region. The appointment raises the number of Sri Lankans heading multinational banks in Colombo to three. The new CEO originally joined Grindlays Bank, Sri Lanka in 1973. Thereafter his career has progressed to head Standard Chartered Bank's operations in Ghana and Thailand as CEO. CB-Pramuka
directors meeting irks depositors But depositors last week were concerned that the Central Bank chose to meet on Thursday directors of the failed bank, even when some of them have been taken to courts by the CID on allegations of mismanagement. There is an open warrant for former bank chairman Rohan Perera who is abroad. Pramuka chairman Udaya Nanayakkara and directors A.H.A. Mendis, K.E.P. Perera and G.S.L. Jinadasa met Nagahawatte and other officials at a meeting summoned by the Central Bank, which was, however, played down by CB officials. "This is very worrying. Why should the Central Bank meet directors who were responsible for the collapse of the bank?" asked one depositor. Mrs. P.P. Sirisena, director of the Central Bank Supervision Department, in a report to the Monetary Board dated November 21, 2002 had suggested various options to revive the bank. One option suggested, "has the advantage of enabling the removal of present (Pramuka) directors who have been responsible for the mismanagement and misdeeds of PSDB," her report said. Meanwhile The Sunday Times FT learns that Sirisena has been transferred to another department in the bank. At Friday's meeting with the depositors, the Central Bank agree to supply information relating to details of depositors, their maturity dates, borrowers, loans outstanding, assets and liabilities to enable the association to ascertain the exact financial situation of the suspended bank. "Once the information is received the proposal (from the depositors) that was prepared nine months earlier to restructure the bank, would be adjusted accordingly," a spokesman for the depositors said, adding that "I hope we get this information this week." Depositors
have indicated that the question of pumping new capital to the tune
of Rs. 1.3 billion would not arise as all the liabilities would
be converted to equity. The Supreme Court which heard the case last Monday is to discuss it again on August 4 to ascertain what steps the Central Bank has taken to help depositors. Peace
talks suspension unnerves investors The bank was planning to set up 1,500 call centres in Sri Lanka. "We are trying to persuade this investor not to back out," one official said. Call centres are customer service desks of telecommunication companies, banks, etc. CB
renews warning about high return investments The circular issued by the CB said that it had noted an increase in the number of institutions that invited the public to place funds with them on the promise of a return by way of trees or their value in money after a stipulated period of time. Some of these institutions from which inquiries have been made by the CB have responded that they are not in the business of accepting deposits, but enter into transactions by way of lease or sale of land/trees and for the provision of related services to their customers. The public is informed that such business is not supervised or regulated by the CB, the circular said. Central Bank Director of the Department of Supervision of non-bank financial institutions Ms. L.K Gunatilleke said that at the moment their objective was to educate the public on how to make an informed investment decision. She said that it was impossible for the CB to bring every single financial service institution within its regulatory scope. The bank's main focus was regulating deposit taking institutions such as banks and finance companies. When asked as to when the CB would create some sort of regulation for these newly emerging financial institutions, she said that the numbers were still small and therefore the CB was not looking at amending the law to bring these institutions within its ambit.(SG) War
anniversary highlights Jaffna's missed opportunities The fighting that raged in Jaffna as three armies - the Tigers, Sri Lankan army and IPKF - fought for control of the area left most of the town in ruins. The euphoria created by business circles about the encouraging business prospects in the north has long disappeared, leaving the peninsula bereft of significant new investments 18 months after the ceasefire was signed and several rounds of peace talks. Before the war erupted in earnest with the riots of 1983, the business acumen and entrepreneurship of the Jaffna people was admired throughout the island. The uncertainty that lingers still appears to be inhibiting investment in the north even though residents expressed their delight over the peaceful environment created by last year's truce, which has enabled them to return to some sort of normality. However, many were still perturbed at the lack lustre response made by businessmen in the south in setting up new industries in the region. M. Ramadasan, president of the Yarlpanam Chamber of Commerce, said that despite numerous visits by businessmen and chamber officials in the south, they were still to set up a single industry in the region. "Originally they were all very keen, and so we showed them the areas, identified prospective sites to set up businesses and even had negotiations with the LTTE on some of the concerns they raised." However, the businessmen never returned. Macky Hashim, president of the Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL), who was one of the first persons to visit the region when the ceasefire agreement was signed, said that business ties have been strengthened and as a result more goods have moved into the market. Companies such as Singer and Ceylon Cold Stores have appointed dealers in the region and trading has significantly increased. Consumers have a wide range of products to choose from and the price of goods have also reduced drastically, he said. With the re-opening of the A-9 highway, excess agricultural produce such as onions, potatoes, chillies and fish have begun to move from Jaffna to other parts of the island. "Since farmers are getting a better price for their produce, more people have begun cultivating their lands," he said. Ramadasan said that despite levels of consumerism improving during the last year, the economy of the region would remain un-developed unless new industries were set up. One of the reasons why businessmen were wary of investing in the region was the uncertain political climate at the moment. Businessmen need to take risks and this is the best opportunity to invest, he said. "If a Sri Lankan could seek a billion dollar business contract in war torn Iraq, why can't they do so in their own country," he asked dejectedly. However, Hashim said that it was difficult for large investments to be made until the necessary infrastructure such as roads and transport was developed. That is the role of the government, he said adding that the chamber was doing its utmost to help small industrialists with technical expertise. |
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