New director board for troubled TFC
View(s):The second phase of restructuring of The Finance Company (TFC) in order to stabilize the company further, and move it to a profitable level, was approved by the Central Bank (CB)’s Monetary Board on Monday.
TFC was involved in a major share deal drama some years ago when NSB decided to take a stake in the loss-making company. The deal was reversed on the directions of the Securities and Exchange Commission and an inquiry launched against the then chairman. A new Board of Directors was appointed and issued the necessary directions for the future conduct of the business under a new restructuring plan. The Monetary Board has further decided to provide a long term facility from the Sri Lanka Deposit Insurance and Liquidity Support Scheme with immediate effect, to support the liquidity requirements of the Company in keeping with the envisaged business model, according to a CB statement.
The new board comprises Dr. S.H.A.M. Abeyratne, PhD (Chairman), S. Rajapaksha, FCA (Deputy Chairman), A. P. Lekamge, MBA (Managing Director), Dr. T Senthilverl, (Non-Executive Director), R. Athukorala, MBA (Non-Executive Director), T. B. Ekanayake, Attorney at Law & Notary Public (Executive Director) and R.D. Abeywickrama, ACA (Executive Director) “The Monetary Board is of the view that with the further strengthening of TFC, it would now be in a position to attract a suitable strategic investor in accordance with the consolidation programme announced by the CB for the financial sector,” the statement said, adding that existing directors, M.P. Jayawardena (Chairman/Non-Executive Director) and Ms. C. Rosa (Non-Executive Director), had decided to step down.