The directorate is made up of Shiromi Wikremesinghe (CEO of Lankaputhra), Kosala Wickremanayake, S S C de Silva, Palane Amarasinghe, and treasury representative Chandra Wickremanayake.
Both banks were started in the last two years following election promises to give loans to small and medium enterprises.
However critics say they have attracted bad risks, with SME Bank itself at one time finding that 30 percent of loans given had gone bad.
An earlier government plan to merge SME Bank with a network of Regional Development Banks came under fire as the RDBs had a better credit culture and was doing yeomen service in the provinces, helping thousands of small entrepreneurs.
Fitch Ratings Lanka which had rated the RDBs around BBB- (lka) and above put them on rating watch after the government made pub