In an unprecedented and un-procedural move, two qualified and experienced professional bankers serving as General Managers of two state owned commercial banks are to be removed without conducting disciplinary inquiry for the first time in the banking history by the preset government.
The aim is to make two political appointments to run the two banks in accordance of whims and fancies of the resent administration under the guise of kick-starting the economy and supporting the private sector, especially the small and medium enterprises, informed sources said.
A decision to this effect had been made at this week’s Cabinet meeting on a proposal made by Prime Minister and Minister of Finance Mahinda Rajapaksa as state banks come under his purview.
But senior bankers said that the Finance Ministry has no legal rights to remove career bankers without any valid reasons and any charges of mal practices and corruption.
At present, the General Manager at Bank of Ceylon is Senarath Bandara, appointed in February 2018, and Rasitha Gunawardana at the People’s Bank, appointed in April 2019.
Bank unions are vehemently protesting against an alleged attempt by the government to remove the General Managers of two state-owned banks, the Bank of Ceylon and the People’s Bank without following the proper procedure.
K. B. Senarath Bandara, General Manager and CEO of the Bank of Ceylon and G.B.P. Rasitha Gunawardana, CEO/General Manager at the People’s Bank are to be removed on a cabinet decision, General Secretary of the Ceylon Bank Employees’ Union, Ranjan Senanayake told the Business Times.
The trade unions of the two banks have decided to launch a protest demonstration tomorrow Monday 02, he said, adding that a special meeting and a token protest was held on Friday opposite BOC in Colombo to create awareness on the government’s move.
This was the first time that two senior bank officials are to be removed by the government violating bank traditions and legal norms, he added.
Letters of protests against this decision were sent to the President and the Prime Minister on Friday morning, Mr. Senanayake said. Senior officials of the two banks were unavailable for comments on the purported moves by the government.
(LI)