Lankaputhra Development Bank Board expels Chairman

Lankaputhra Development Bank (LDB) Board yesterday expelled its Chairman Lasantha Goonewardena following the ruling for the same by the Monetary Board.

Following the move the Board appointed Director Ranil Fernando as the Acting Chairman.

Despite alleged moves by Goonewardena to scuttle the oust, the Board had managed to comply with the Monetary Board directive. The Chairman had participated at the Board meeting yesterday and had later walked out.

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

Accordingly, the Monetary Board Secretariat in a letter dated 2 September 2016 directed the Company Secretary to bring it to the immediate notice of the Board of Directors of LDB that as per the Attorney General, in terms of Section 42 (7) of the Banking Act, Lasantha Goonewardena 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 of Central Bank refused to ratify Goonewardena’s appointment as chairman in a letter dated 24 March, after he was found to be in violation of the Banking Act for corporate governance violations and violating confidentiality regulations under the Banking Act.