Nov 07, 2016

Lankaputhra Bank Chairman defies the Central bank directive

Lasantha Gunawardena continues to hold the post of Chairman Lankaputhra Development Bank Ltd. (LDB) even after the directive issued by the Monetary Board Secretariat of the Central Bank, official sources said.

Governor of the Central Bank Dr. Indrajith Kumaraswamy told Media conference recently that the Department of Bank has already declared that Mr. Gunawardena was not fit and proper to hold the chairman’s post at the LDB.

This declaration was made after seeking the advice of the Attorney General and it is up to the relevant authorities to take necessary action.

However Mr. Gunawardena continues as the chairman of LDB wielding his political power, employees of the bank complained.

The Monetary Board Secretariat has directed the Company Secretary to remove the LDB Chairman after considering the opinion of the Attorney General in terms of the Section 42 (7) of the Banking Act.

According to the Attorney General, in terms of Section 42 (7) of the Banking Act, Lasantha Goonawardena cannot hold the office of Chairman of LDB from the date he was notified by LDB of the determination made by Director Bank Supervision dated 24 March 2016.

The Bank Supervision Department found that LDB Chairman Goonawardena had failed the ‘fit and proper’ test crucial to ensuring the integrity of officials heading banking and financial institutions thereby he could no longer serve in the position of Chairman of the Bank as he has no professional qualifications required by the Banking Act.