The Central Bank (CB) has requested the People’s Bank to reconsider its proposal to appoint Kurukulasuriya Canicious Joachim Clive Fonseka as the new CEO/General Manager of the bank. The reason given, in a letter dated December 22 to bank Chairman Sujeeva Rajapakse, is that Mr Fonseka’s experience is confined to the subject of Treasury, and [...]

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CB asks People’s Bank to reconsider CEO choice

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The Central Bank (CB) has requested the People’s Bank to reconsider its proposal to appoint Kurukulasuriya Canicious Joachim Clive Fonseka as the new CEO/General Manager of the bank.

The reason given, in a letter dated December 22 to bank Chairman Sujeeva Rajapakse, is that Mr Fonseka’s experience is confined to the subject of Treasury, and that he lacks sufficient experience in the overall banking business operations.

Incumbent CEO/GM Ranjith Kodituwakku is due to retire shortly.

As per Central Bank rules, all appointments of CEOs of banks have to be cleared by the banking regulator under fit and proper rules listed in the Banking Act. Mr Fonseka is currently a senior officer at the bank.

The Central Bank has requested the State bank to appoint an acting CEO/GM until a suitable person who fits the criteria set out in the rules
is appointed.

“We note with serious concern the failure of the bank’s board of directors to groom a successor with adequate experience in the overall banking business and operations. Considering the importance of this position, we request the Board of Directors to urgently explore all possibilities of appointing a suitable person within the bank, failing which, the Board of Directors may consider recruiting a suitable person externally with appropriate expertise to fill this position,” the Central Bank’s Director of Bank Supervision said in the letter.

The letter also observed that the revised Succession Plan submitted to the Board meeting on September 8, 2022 has not identified successors for 23 posts which includes the post of CEO/GM. It requested the bank to review and update the Succession Plan in a timely manner to ensure suitable successors are identified for key management positions.

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