Director Controversy

Apr 01, 2011 (LBO) - Sri Lanka's Commercial Bank of Ceylon has released a statement on the action led by state-connected shareholders to oppose the re-election of an independent director. 3. The Board wishes to clarify and re-iterate that Mr. Ranjit Fernando’s decision not to stand for re-election was his own independent decision and was not in any way whatsoever for the purpose of accommodating the appointment of Mr. Hulugalle to the Board of the Bank.

BY ORDER OF THE BOARD OF
COMMERCIAL BANK OF CEYLON PLC

Mrs. R. R. Dunuwille
Company Secretary

The stepping down of Ranjith Fernando, a former senior banker after state shareholders opposed his re-election sent shockwaves among the business community Thursday.

Questions were raised especially about the conduct of pension funds of private sector workers managed by the state in the affair, which has now been labeled as an example of Sri Lankan governance practices.

The full statement is reproduced below.

COMMERCIAL BANK OF CEYLON PLC PQ 116 ANNOUNCEMENT

The Board of Directors of Commercial Bank of Ceylon PLC (the Bank) wishes to inform the public of the followi