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Lankaputhra Development Bank Exposure: CBSL inaction raises eyebrows

Oct 22, 2016 12:16:17 PM - newsfirst.lk

Last Thursday Action TV exposed  how the Chairman of the Lankaputhra Development Bank, and his affiliates appointed by the Good Governance Government, has taken the bank, which operated under the slogan The Heartbeat of Sri Lanka for a ride.

In our report, we identified the chairman in question as the former chairman of the Lankaputhra Development Bank.

He becomes “the former chairman,” as per the provisions of the banking act when the Central Bank issued this statement on March 24.

The letter signed by the banking supervisor of the Central Bank says that since the individual has not complied with two sections of the Banking Act, his appointment as the chairman of the bank has been refused.

Such a decision can only be reverted if the person in question provides an affidavit within fourteen days from the initial letter, and if that affidavit is taken up for consideration by the Monetary Board of the Central Bank.

Since L. Goonewardena was not able to provide an affidavit within 14 days after the initial letter was sent, Goonewardena continuing to take part of the activities of the bank as a member of the board of directors after March 24, 2016,  becomes a wrongful act. In addition, the authorities who were turning a blind eye to this situation, also become wrongdoers.

A situation like this can only arise in a backdrop where there is no banking act nor a general law in the country.

By cancelling the appointment of L. Goonewardena, through a letter on March 24, 2016, the Central bank depicts to the country, that there is a banking act prevalent.

However, the inaction of the CBSL with regard to the bank until yesterday, not only showed its irresponsibility but also goes on to show the incompetence of the Central Bank.

The post Lankaputhra Development Bank Exposure: CBSL inaction raises eyebrows appeared first on Sri Lanka News - Newsfirst | News1st | newsfirst.lk | Breaking.