NSB Chairman resigns

Pradeep Kariyawasam, Chairman of National Savings Bank has tendered his resignation, following the state-owned NSB’s recent controversial purchase of shares of The Finance Company.

Mr. Kariyawasam, speaking to Ada Derana, said he has sent his resignation to Preident Mahinda Rajapaksa today (21).

National Savings Bank (NSB) had purchased 7,863,362 shares of The Finance Company for nearly Rs. 394 million, despite the objection of several Director Board members.

The deal involved in a 13.02% stake of The Finance Company (TFC) being bought by the savings giant NSB at around an average price of Rs.49.74 a share.

This was through four separate transactions involving two TFC directors and NSB Chairman Pradeep Kariyawasam, when the share market price was hovering around mere Rs.30-31 a share.

President Rajapaksa had later ordered the immediate suspension of the transaction while Securities and Exchange Commission (SEC) had allowed National Savings Bank (NSB) to return the shares bought in The Finance Company PLC (TFC).

SEC had said it is separately investigating the above mentioned transaction and the parties involved in it.

Opposition parties including the United National Party (UNP) had demanded the immediate resignation of all individuals responsible including the NSB chairman.

UNP General Secretary Tissa Attanayake had claimed that the National Savings Bank had incurred losses of Rs. 150 million due to the deal and that the shares of The Finance Company, which dropped to Rs. 32 a share after being purchased at Rs. 49.74 per share, were only worth Rs. 30.30 a share. (AdaDerana)