Acting arrangement for the Governor of the Central Bank during his leave in Sri Lanka is legal

In an article published in the newspaper “Daily FT” on March 23, 2015, Mr. W.A. Wijewardena, a former Deputy Governor of the Central Bank, has stated that the law does not provide for an acting arrangement for the Governor when the Governor is in Sri Lanka. As such, the forced leave of the Governor is not recognized by law and all decisions made in the bank without him being present are subject to challenge in courts of law. The Central Bank wishes to state that the contents of the above statement are grossly incorrect and clarify the relevant legal position as follows. 

1. In terms of Section 24 of the Monetary Law Act, in the event of temporary absence from duty of the Governor or of the temporary inability of the Governor to perform his functions and duties, the Deputy Governor designated as senior by the Monetary Board shall act as the Chief Executive Officer of the Central Bank and shall have authority to execute the powers and perform the functions and duties of the Governor under the Act. Therefore, whether the Governor is in Sri Lanka or abroad does not become a relevant concern when the provisions of Section 24 of the Act are invoked. The law in this regard is very clear and straight forward. Communications Department 24 March 2015 

2. The designation of the Senior Deputy Governor was made by the Monetary Board at its meeting held on 17.03.2015 and, therefore, the relevant decision-making process in the Central Bank is legal. 

3. The Governor’s leave at present is not a form of forced leave. As announced in the Parliament on 17.03.2015 , the Governor went on leave to facilitate the inquiry on the issuance of Treasury Bond under the reference subject after informing the Monetary Board of taking such leave at its meeting held on 17.03.2015. Prior to that, the Governor informed it to the media as well. 

4. Only certain decisions made in the bank require the Governor’s approval in terms of relevant legal provisions and internal procedures. The rest of decisions are taken by other authorized officials in the bank. In Sri Lankan legal system, any decision taken by an administrative authority is subject to judicial review and this applies to the Central Bank, too, irrespective of the issue raised in the statement under reference.

-CBSL

Odel PLC acquires 99.99 per cent of Softlogic Brands (Pvt) Limited

Odel PLC acquired 99.99 per cent of Softlogic Brands (Private) Limited for Rs. 599,995,200 from Softlogic Retail (Private) Limited and Dai-Nishi Securities (Private) Limited which are subsidiaries of Softlogic Holdings PLC.

Softlogic Brands has the largest international and branded apparel and accessory portfolio in Sri Lanka and retailing 20 brands through its 41,000 sq. ft. prime retail space in Colombo.
www.adaderana.lk

Sri Lankan shares mark near 7-month low closing level

(Reuters) - Sri Lankan shares fell for a second straight session on Tuesday and closed at their lowest in nearly seven months, led by banks amid political uncertainty while investors waited for cues on interest rates.

The main stock index ended 0.63 percent, or 44.37 points, weaker at 6,997.93, its lowest closing level since Aug. 28 and below the key psychological support level of 7,000. It had lost 4.37 percent in the past 17 sessions.

"This is due to political uncertainty after the formation of national government," a stockbroker said on condition of anonymity.

Analysts said the government's decision-making process would slow down after President Maithripala Sirisena formed a national government incorporating the main opposition party in a bid to push through reforms and preserve political stability.

They said the market was awaiting clarity on interest rates after yields on t-bills fell between 31 and 44 basis points at a weekly auction on Wednesday, after having spiked by 112-124 basis points at the two previous weekly auctions.

The central bank said on Wednesday the low-interest rate environment was expected to continue benefiting from lower inflation while keeping policy rates steady.

Shares of the country's biggest listed lender, Commercial Bank of Ceylon Plc, fell 2.31 percent, while Ceylon Theatres Plc dropped 7.14 percent. Conglomerate John Keells Holdings Plc fell 0.72 percent.

The day's turnover was 394.1 million rupees ($2.96 million), well below this year's daily average of 1.21 billion rupees.

Foreign investors were net sellers for the second straight session. They sold of 15.42 million rupees worth of shares, but have been net buyers of 3.33 billion rupees so far this year. 

($1 = 133.1000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)