October 20, 2018 (LBO) – Newsfirst is reporting that Jehan Amaratunga has resigned from the board of Peoples Bank. His resignation as reported by Newsfirst, although handed over on October 18th, is said to be effective August 31, 2018.
Amaratunga, Executive Deputy Chairman of CSE listed MTD Walkers (KAPI), has been a subject of controversy over the last several weeks. Accusations have been hurled about conflict of interest as MTD Walkers was a large borrower from the People’s Bank.
MTD Walkers has been under financial stress, having recently restructured payment of a maturing debenture in order to satisfy conditions of payment stipulated in the debenture trust deed. This eleventh hour restructuring saved the company and the corporate debt markets from a significant default.
Banking insiders have said that due to the controversy, the resignation should have happened months ago. However, Jehan Amaratunga continued to hang on as a Director of Peoples Bank. They say that credit must be given to the President for finally making moves to clean up the board of the bank.