Saturday Nov 16, 2024
Saturday Nov 16, 2024
Wednesday, 5 March 2014 00:28 - - {{hitsCtrl.values.hits}}
An eminent panel of corporate leaders that included the Assistant Governor of the Central Bank C.J.P. Siriwardene, Sampath Bank PLC Managing Director Aravinda Perera, Chairman of the Finance Houses Association of Sri Lanka and Director/CEO Softlogic Finance PLC Naleen Wijekoon, People’s Leasing & Finance PLC Chief Executive Officer D.P. Kumarage, Commercial Bank of Ceylon PLC Deputy General Manager – HRM Isuru Tillakawardana and KPMG in Sri Lanka’s subject matter specialists including, Reyaz Mihular – Managing Partner, Partner – Head of Advisory Priyanka Jayatilake, Shiluka Goonewardene, Principal – Transactions & Restructuring and Principal – Tax & Regulatory Suresh Perera, shared their views on the topic.
The discussion was centered on pre-merger preparation and post-merger integration covering issues related transaction aspects, tax and regulatory aspects, human resource related concerns and implications in relation to IT.
A stronger financial sector
The Assistant Governor of the Central Bank noted that these measures to consolidate financial institutions are part of the regulator’s plans to create a sustainable financial sector capable of fuelling the development of the country in the years to come. He went on to state that the consumer will benefit as a result of a stronger financial sector.
Commenting on the proposal, Managing Director of Sampath Bank PLC, Aravinda Perera, stated that similar initiatives have been successfully implemented internationally and that the measure is a step in the right direction.
The Chairman of the Finance Houses Association welcomed the proposal and agreed that the proposal would help create a stronger industry.
Post merger integration
The panellists unanimously agreed that neglecting the post-merger integration process can undermine the performance of a strategically sound merger or acquisition, while also acknowledging the challenges that the transformation may bring about in the years to come. Challenges in the Human Resource Management front were discussed in detail, especially in terms of managing a scenario of excessive resources, the prevention of key talent loss and governance.
Calls for further assistance by the Regulator
The presenters and panellists stressed upon the requirement of the regulator to intervene and facilitate the process on matters such as price evaluations, the timeframe for the submission of the proposals, negotiations, tax and regulatory concerns and post merger implications.
Over 150 delegates representing the financial services and other sectors were present at the event.
CMI and KPMG hope to continue their partnership on similar knowledge sharing initiatives, bringing together industry professionals to share their expertise on topics that are of relevance to the Sri Lankan business environment.
