HNB gets veteran banker Nilanth as new Chairman after Harsha resigns

A.H.D.A. Nilanth de Silva

Dr. Harsha Cabral PC

The country’s second largest private bank, HNB, yesterday announced a new Chairman in industry veteran A.H.D.A. Nilanth de Silva, following the sudden resignation of Acting Chairman and longstanding Non-Executive Independent Director Dr. Harsha Cabral PC.

HNB, in a disclosure to the Colombo Stock Exchange (CSE,) said Cabral notified the Bank that he was resigning from the Board with immediate effect. HNB also said the Board, at its meeting held yesterday, accepted the resignation and appointed Independent Non-Executive Director A.H.D.A. Nilanth de Silva as Chairman with immediate effect.

The Daily FT learns Dr. Cabral, who was only appointed to HNB Board in September 2019, resigned over differences of opinion. A highly respected corporate lawyer, Dr. Cabral was not available for comment. 

Nilanth de Silva has over 47 years’ experience in commercial banking and bank management. He joined the Bank’s Board as a Director in 2015. De Silva started his banking career in 1974 at HNB and at the time of his departure held the position of Deputy General Manager – Corporate Banking. 

Currently, he holds the positions of Independent Non-Executive Director at Malwatte Valley Plantations, Holco Ceylon and Expo Industrial Engineering. De Silva was the former Acting CEO and Chief Operating Officer of Union Bank of Colombo, former Director of Lanka Clear and former Alternate Director, Credit Information Bureau of Sri Lanka (CRIB).

Prior to his appointment, there was speculation that Samantha Rajapaksa, former Managing Director of AMW and Director of Bank of Ceylon, would be appointed as HNB Chairman. However, it is learnt that the HNB Board, at its previous meeting held last week, had differences of opinion on the matter with some lobbying hard for Rajapaksa. Dr. Cabral’s decision to step down came soon after.  

The Daily FT on 4 June 2021 (https://www.ft.lk/top-story/Battle-for-Board-seats-hots-up-at-HNB/26-718842) exclusively reported that country’s second-largest private sector bank, HNB was seeing a heated battle for seats on its Board in what analysts saw as a four-way fight, involving business tycoon Harry Jayawardena, the Finance Ministry, the Captains Group, and the latest entrant Browns investment in the form of Ishara Nanayakkara.

The effects of the internal battle spilled over to the general public with some people even resorting to using WhatsApp, sending anonymous mails and also slandering Director and veteran banker Nilantha de Silva and Acting Chairman Dr. Cabral.

It was alleged that Finance Ministry Secretary S.R. Attygalle, through Sri Lanka Insurance (13.3% shareholder) wants Samantha Rajapaksa, a former Bank of Ceylon Director during the previous administration, and Nihal Jayawardena PC, appointed as Directors.

Ishara Nanayakkara (via Browns Investments owns a 9.9% stake in HNB) wants his LOLC Group Managing Director veteran Banker Kapila Jayawardena appointed. 

Both Captains (whose stake is around 8.4%) and Jayawardena (owning 17.8%) have one director each. Jayawardena, who has had two directors for several years in the past, wants his second director. 

Dr. Cabral is a President’s Counsel in Sri Lanka with 31 years’ experience in the field of Company Law, Intellectual Property Law, Commercial Law, Securities Laws, International Trade Law and Commercial Arbitration. He is a sitting member of the International Chamber of Commerce (ICC) International Court of Arbitration in Paris. He is also the Chairman of Tokyo Cement Group and a Director of Hayleys, DIMO, Alumex, World Export Centre, Sri Lanka Institute of Information Technology (SLIIT) and CCC-ICLP Alternative Dispute Resolution Centre.