The Central Bank (CB) will not step aside now that the once-troubled Seylan Bank is on a sound footing, according to Seylan officials. “The CB plays a big role and will continue to do so. They will not take a back seat with regard to Seylan despite the entry of new shareholders," Ranjith Narangoda, Chairman Seylan told the Sunday Times FT.
Seylan Bank last week invited nominations for its director board from Bank of Ceylon (BOC), LOLC, Sri Lanka Insurance Corporation (SLIC) and the Browns Group, on the back of these entities investing in Seylan’s public share issue last month.
Mr. Narangoda did not comment on possible new entrants to the board. A Seylan source said that SLIC has nominated its Chairman Pradeep Kariyawasam and Managing Director Nalaka Godahewa to the board, LOLC has nominated its Managing Director Ishara Nanayakkara and Browns has nominated Ajith Devasurendra one of its major shareholders. He said that the state run BOC nominee is not yet announced. “CB is now doing their due diligence on these nominations and awaiting BOC’s proposed director’s name,” the source said.
Following the public issue, BOC, LOLC and Browns have secured 10% each while SLIC has a bigger 15%.