Sri Lanka Lalith Kotelawala to quit Ceylinco Insurance board

May 20, 2010 (LBO) – Sri Lanka’s Ceylinco group chairman Lalith Kotelawala, who spent months in remand over fraud charges at an unlisted subsidiary that collapsed, is to step down from the board of Ceylinco Insurance, a stock exchange filing said. Kotelawala has informed the board and staff that he “will not be available for re-election as a director of Ceylinco Insurance due to personal reasons,” it said.

A resolution at the forthcoming annual general meeting of the firm on Kotelawala’s re-lection will not be taken up and Kotelawala will cease to be a director of Ceylinco Insurance from May 28, the statement said.

Kotelawala, one of the island’s most prominent businessmen, is now on bail after several months in remand over alleged fraud at Golden Key Credit Card Company, an unlisted Ceylinco subsidiary.

Ceylinco Insurance, which was part of the Ceylinco group, is operating as an independently managed firm with new shareholders.

Regulators intervened when the group was affected by the collapse in 2008 of Golden Key, an unregulated financial firm, which triggering runs on group firms.

The Ceylinco group has put on sale several of its subsidiaries and properties to raise funds to repay depositors of Golden Key.