MBSL CEO gets enjoining order against suspension

Merchant Bank of Sri Lanka (MBSL) Chief Executive Officer Gamini Karunathilake yesterday got an enjoining order from the District Court of Colombo against his suspension.

He was allegedly suspended from office by MBSL Chairman M.R. Shah pending an inquiry into certain acts of alleged misconduct. 

MBSL’s filing on the Colombo Stock Exchange last week didn’t give details.

However sources claimed that the original suspension was over what they described as “baseless” review report prepared by the internal auditor of MBSL parent Bank of Ceylon.

Presided by Judge Ranjith Watupola the District Court of Colombo yesterday issued an enjoining order against the MBSL from giving effect to the suspension letter and stated the allegations were baseless on the face of those.

17 January was fixed as the date for written submissions.

Wijeyadasa Rajapaksa PC, Dasun Nagahawatte and Sampath Perera instructed by S.B. Dissanayake Associates appeared for Karunathilake and Farman Cassim appeared for MBSL Chairman Shah.

Karunatillake is a professional banker with over 30 years of experience. He obtained a B.Com (Hon) Degree from the University of Sri Jayewardenepura and an MBA from the Post Graduate Institute of Management (PIM) of Sri Lanka.

He is a fellow member of the Institute of Bankers of Sri Lanka and was a visiting lecturer on ‘Law and Practice of Banking’ for the Bachelor of Commerce and Economics Degree programmes and on ‘Banking and Finance’ for the MSc. Management Programme at the University of Sri Jayewardenepura.

He also served as a lecturer and Chief Examiner on ‘Law and Practice of Banking’ and ‘Practice of Banking’ at the Institute of Bankers of Sri Lanka. He was also a Director of Merchant Credit of Sri Lanka Ltd.