The Chairpersons of two leading private banks in the country have indicated that they will be stepping down from their duties and will not pursue re-election to their posts during the respective banks’ Annual General Meetings scheduled for today.
National Development Bank PLC (NDB) Chairman Sunil Wijesinha and Hatton National Bank PLC Chairperson (HNB) Dr. Ranee Jayamaha had informed of their decisions to respective boards of directors last week, according to announcements filed to the Colombo Stock Exchange.
While it is not clear who their successors would be, the state could have a significant influence in who gets appointed, if it exercises its powers.
In fact, Sunil Wijensinha on his Facebook profile said he resigned because the Finance Minister expressed his wish to reconstitute the board.
Through state-owned institutions such as National Savings Bank, Bank of Ceylon and Sri Lanka Insurance, as well as state-managed funds such as the Employees’ Provident Fund and Employees’ Trust Fund, the government has 28.38 percent of the voting shares in HNB, and 33.25 percent of the rights in NDB.
Both Wijesinha and Dr. Jayamaha were appointed during the previous regime.