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Managed Finance

Mar 16, 2009 (LBO) – Sri Lanka's The Finance Company, a member of the troubled Ceylinco group, will be run by a former senior state bank executive who has been appointed as 'managing agent', officials said. Central Bank Governor Nivard Cabraal said Guy de Silva, a former deputy general manager of state-run Bank of Ceylon, will run The Finance Company with support from an expert group also appointed by the regulator.

"Many of the staff members are taking deep cuts in salaries, especially higher management," Central Bank governor Nivard Cabraal told reporters.

Directors will also keep a part of their emoluments as deposits to "signal their commitment" and their confidence in the group, he said.

Deputy Governor Ranee Jayamaha said the firms which are run by managing agents will continue to be in business and the intention was not to close them down.

The Ceylinco group was hit by a liquidity crisis after Golden Key, an unregulated member of the Ceylinco group, collapsed.

Several directors of the company, including chairman Lalith Kotelawala, have been remanded over the firm's inability to repay customers, who are estimated to be owed about 26 billion rup

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