July 30, 2009 (LBO) – Sri Lanka’s Seylan Bank said it had stepped up efforts to recover loans and improved credit evaluation and corporate governance under new management which was appointed by the banking regulator. It said in a statement the bank, which faced a run after the collapse of an unlisted subsidiary of its parent Ceylinco group, “now seems to be firmly on the road to recovery.”
The central bank intervened and appointed a new board of directors after the run on Seylan Bank last year.
The new chairman Eastman Narangoda said in the statement that Seylan Bank is not controlled by the Ceylinco Group anymore and that the new Board has lost no time in reorganising the management of the bank.
“Systems have now been implemented to recover doubtful advances which impact the bank’s performance and credit procedures have been streamlined and strengthened to ensure good credit evaluation.”
The new Board has introduced proper corporate governance by the appointment of Board Committees for Audit, Credit, Human Resources and Remuneration.
It also appointed skilled professionals into key management positions and has commissioned a three year strategic plan.
“By implementing the strategic