Corporate News

Amendments to Directions on Corporate Governance for Licensed Banks

The Central Bank has expanded the transitional provisions to further facilitate the smooth transition by banks to the Directions on Corporate Governance for licensed banks that were issued in December 2007.

These additional transitional provisions give special consideration to the role and contribution of Founding Directors and Incumbent Chairmen to the promotion and stability of the banks and the technical and professional expertise that is contributed by executive directors.

Accordingly, the following amendments and transitional provisions have been made to Directions on Corporate Governance for Licensed Commercial Banks (LCBs) and Licensed Specialised Banks (LSBs): (a) In addition to the Chief Executive Officer, executive directors would also be permitted to function as Directors for more than nine years.(b) In the application of three Directions, i.e., Direction 3(2)(ii) regarding the maximum total period of service of a director, Direction 3(3)(i) regarding the maximum age of a director, and Direction 3(3)(ii) regarding the number of companies/entities/institutions that a director could serve, the expanded transitional arrangements provide for an exemption of the application of such directions for a maximum period of five years in the case of Founding Directors and Incumbent Chairmen, by the Monetary Board on a case-by-case basis.

Such exemption to be granted upon a request being made in accordance with the process as set out in the Directions.

It is envisaged that these amendments would enhance the smooth transition within the boards of directors of banks in complying with the new Directions, which are expected to enhance the corporate governance practices in banks, thereby promoting a safe, sound and stable banking system.

NDB Bank among Top Ten companies in Lanka

NDB Bank was ranked eighth among the top 10 Sri Lankan Companies for the financial year 2006 - 2007 recently chosen by the leading business magazine “Business Today”.

Since 1979 NDB Bank has been one of the largest sources of medium and long-term project finance for business in Sri Lanka. In 2001, NDB Bank entered the commercial banking arena.

NDB Bank made its comeback resulting from an 84% growth in profits of the NDB Group. Profits from core banking business contributed to the healthy performances of the bank and Capital Gains to the tune of Rs. 1,016 million contributed to its exceptional increase in profits.

The Capital Gain was realised from the sale of Capital Investment and Development Company, a subsidiary of NDB, of part of its holding in NDB Finance Lanka Ltd., the holding company of Eagle Insurance Co. Ltd., - to Aviva International Holdings Ltd.

With long-term sustainable returns, the bank has done well in terms of profitability and has a quality portfolio with the lowest Non-Performing Loans in the industry among local banks.

The bank’s low cost income ratio among local banks also reflects its stability while the growth in its deposit mobilisation demonstrates the rapid expansion of its distribution network. NDB Bank is also well capitalised with a strong balance sheet.

NDB Bank has the strength and diverse resources to offer its customers a very wide-ranging portfolio of financial solutions including funding for structured and corporate finance deals, project financing, SME financing, retail banking, treasury, cash management services, trade finance operations and advisory and services through a rapidly expanding branch network, which currently consists of 40 branches.

The bank has developed a reputation for innovative banking products and services that meets the real needs of its customers and offers a wide range of commercial banking services which include Current Accounts, Call Deposits, Privilege Banking, Savings Accounts, Children’s savings, Vishmitha savings account with zero percent interest, Housing Loans, Bancassuarance and Western Union Money Transfer Services.

New Chief Commercial Officer at Tigo

Tigo has appointed Erik Van Vulpen as the Company’s new Chief Commercial Officer (CCO).

Vulpen who takes on this key position at Tigo, is a seasoned marketing professional who has a Bachelors Degree in Business Engineering and a Masters in Marketing. Having spent the last seven years in the region working in Singapore with Samsung and Asia Pacific Breweries, Vulpen climbed the ranks of marketing through research and management consulting with a McKinsey alumnus in Amsterdam.

Tigo CEO, Dumindra Ratnayaka said, “with Tigo growing rapidly amidst aggressive competition, Vulpen’s expertise will no doubt help us continue our growth and further strengthen our market position”.

“I am very privileged to work for Tigo. It is one of the fastest growing global telecommunications companies with a strong business strategy that is aligned with the needs of our customers”, said Vulpen. “It’s a delight to work for a brand that is truly servicing consumer needs.

New DG at SLSI

Dr. Lalith Nimal Senaweera has been appointed as the new Director General of SLSI (Sri Lanka Standards Institution) by the Minister of Science and Technology Prof. Tissa Vitarana.

Dr. Senaweera is a product of Dharmasoka College Ambalangoda. Before being appointed to this post, he has held various positions in the SLSI for over 25 years. He has undergone extensive training local and overseas in the fields of Standardisation, Certification, Auditing and Quality Management. He holds B.Sc. (Hons), MBA and PhD degrees.

He is a Fellow of the prestigious Institute of Quality Assurance UK and a Council Member of Institute of Management of Sri Lanka. He is also a fully qualified Lead Auditor for QMS (Quality Management System) and EMS (Environmental Management System) registered with International Register of Certificated Auditors based in the UK.