Monetary Board effects fresh restructuring in The Finance
Tuesday, 27 May 2014 03:25
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Approves immediate long term facility from Deposit Insurance and Liquidity Support Scheme
n New Chairman and Director appointed to Board
n Second phase of restructuring to help attract strategic investor
The Central Bank last night announced a new wave of restructuring to stabilise The Finance PLC and improve its attractiveness for any interested strategic investor.
In a statement the CB said the Monetary Board at its meeting held on 26 May decided to implement the second phase of restructuring of The Finance Company (TFC), in order to stabilise the company further, and move it to a profitable level.
In terms of the provisions of the Finance Business Act No. 42 of 2011, the Monetary Board has reconstituted the Board of Directors of The Finance Company by appointing several new Directors, and has also issued the necessary directions for the future conduct of the business under a new restructuring plan.
The Monetary Board has further decided to provide a long term facility from the Sri Lanka Deposit Insurance and Liquidity Support Scheme with immediate effect, to support the liquidity requirements of the company in keeping with the envisaged business model.
The Monetary Board is of the view that with the further strengthening of TFC, it would now be in a position to attract a suitable strategic investor in accordance with the consolidation program announced by the CBSL for the financial sector.
At the same time, of the existing Directors M.P. Jayawardena (Chairman/Non-Executive Director) and C. Rosa (Non-Executive Director), had indicated that they would not be available for consideration to be re-appointed for the reconstituted board of TFC.
Accordingly, the newly constituted Board of Directors of the TFC would be the following: Dr. S.H.A.M. Abeyratne PhD (Chairman), S. Rajapaksha FCA (Deputy Chairman), A.P. Lekamge MBA (Managing Director), Dr. T. Senthilverl (Non-Executive Director), R. Athukorala MBA (Non-Executive Director), T.B. Ekanayake Attorney at Law & Notary Public (Executive Director) and R.D. Abeywickrama ACA (Executive Director).
