Financial Times

ComBank union vs Harry J
The Commercial Bank Staff Union will reveal its intention to initiate union action this week, following discussions with the Central Bank regarding the issue between the bank’s Chairman Mahendra Amarasuriya and major shareholder Harry Jayawardena.

Commercial Bank Branch Union Secretary, M. R. Shah told The Sunday Times FT that the bank’s union comprising the Officers’ Association and the Staff Association is disgusted with the regulator’s bland attitude towards such a serious issue and the staff will be informed by the union officials this week about the agitations and any other course of action necessary.

“Central Bank wrote to us initially saying there was not much they could do after obtaining advice from their lawyers and said they are seeking further advice, but we feel they are not very interested in resolving this issue,” he said. He said the union officials are due to meet the Treasury Secretary Dr P. B. Jayasundera as well, but did not give details.

“We will start off with certain agitations to force the Central Bank to enforce the Banking Act on Jayawardena and make him divest the excess amount of shares in Commercial Bank,” he said. He said the union is not concerned about who the majority shareholder or the chairman is and will defend any attempt by individuals trying to ride their personal animosities and agendas at the expense of the bank.

“The two individuals have to sort the issue amongst themselves and should not drag the bank in,” he said, reiterating that the union does not see any valid reason for Amarasuriya to leave his position, because he has served the Commercial Bank well.

“Harry Jayawardena should not intervene in the administration or the running of the bank, because it has done quite well so far, without his intervention,” he added.

Jayawardena-controlled Distilleries Company of Sri Lanka and Sri Lanka Insurance Corporation, holding a major stake in Commercial Bank moved a resolution recently to hold an extra general meeting on November 2 to remove Amarasuriya from his position as Director of the bank. This means Amarasuriya would lose the chairmanship of the bank.

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