Most recent Deputy Governor of the Central Bank K.G.D.D. Dheerasinghe has been appointed to the Board of Commercial Bank Plc as a Non Executive Director.
The appointment with effect from 20 December was announced by the Commercial Bank yesterday whilst the Daily FT first broke the impending move a week ago. Dheerasinghe retired from the Central Bank last week after completing long service. He served as Deputy Governor from May 2009 to December 2011 whilst previously he was the IMF’s Alternate Executive Director for Bangladesh, Bhutan, India and Sri Lanka as well as Assistant Governor from June 2004 to September 2007.
As reported last week by the Daily FT speculation remains that the Board will elect Dheerasinghe as the Chairman of Commercial Bank. This was in place of longstanding Mahendra Amarasuriya who was previously scheduled to step down by next week in compliance with Central Bank rules for directors of commercial banks.
However a shareholder K.C. Vignaraja has obtained a stay order from Courts against the Central Bank rules on the basis that if directors are fit and honest, they should be allowed to continue. Apart from limiting directors’ tenure for nine years, those over 70 years of age have to resign as per Central Bank ruling.
Business leader Amarasuriya is celebrating his silver jubilee on the Board this year in addition to being Chairman for 16 years. He is expected to continue at least until January 27 the date of next hearing of the Vignarajah’s case.
State entities controlled DFCC Bank owns 15% stake in Commercial Bank whilst EPF along with Sri Lanka Insurance own over 18% stake.