Court has directed new rules with the amendments to be issued, the Central Bank said. Governance rules imposed by the Central Bank limited the term of a bank director to nine years and the age to 70 years. Bank directors also could not be members of the boards of more than 20 companies.
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Following a fundamental rights petition, Sri Lanka's Supreme Court has allowed directors who reach the age of 70 by December 31, 2008 to continue for a further three years from January 01, 2009, the Central Bank said.
Under transitional provisions the Central Bank said it had already allowed founding directors and sitting chairmen to continue for a further five years, subject to conditions.
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A bank director, who had completed nine years by 2008, would also get a further three years to meet the term limit rule.
Bank directors would also get three years from January 01, 2009 to meet the requirement limiting their membership to boards of only 20 companies.
Court has asked the Monetary Board, the