The People’s Bank has issued a statement rejecting allegations that it favoured a director of the bank in providing loans to a company he works for. In a statement to the media issued by its chairman Hemasiri Fernando, the bank said that loans given to MTD Walkers and Walkers Group in a total sum of [...]

Business Times

People’s Bank rejects allegations of favouritism in loans

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The People’s Bank has issued a statement rejecting allegations that it favoured a director of the bank in providing loans to a company he works for.

In a statement to the media issued by its chairman Hemasiri Fernando, the bank said that loans given to MTD Walkers and Walkers Group in a total sum of Rs. 10 billion had been given since 2004 whereas the Walkers director in question, Jehan Amaratunga had joined the People’s Bank Board of director in 2010. “A bank grants loans to a natural person or legal entity, i.e. a company. Directors are separate from the company,” it said in response to news articles on web sites alleging favouritism in the disbursement of these loans. The statement said Mr. Amaratunga was appointed a director at MTD Walkers in 2012, long after the bank started a business relationship with the company.

People’s Bank said it has adhered to established credit procedures when granting the said loan facilities and followed Central Bank regulations in this process.

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