By Adolf
A quiet but consequential power struggle appears to be unfolding within one of Sri Lanka’s most systemically important financial institutions—Hatton National Bank (HNB). At the centre of this controversy is Suresh Shah, a businessman whose public profile has risen sharply in recent years, despite a professional background largely confined to a single industry.
Controversial Suresh is Chairman of CTC
Shah spent much of his career heading a brewery, and by most accounts his experience has been limited to that sector. He had little exposure to public finance, banking, or national-level economic restructuring until the latter years of the previous government led by President Ranil Wickremesinghe. His sudden prominence, critics argue, coincided with his daughter’s marriage into the family of former UNP Minister Daya Gamage—an association many believe helped propel him into positions of influence. During this period, Shah was appointed Chairman of the Ministry of Finance’s restructuring unit, a body expected to play a pivotal role in divestments, privatisations, and reforms of state-owned enterprises. However, according to informed sources, over Rs. 200 million was spent on consultants during his tenure, with no completed privatisations to show for it. These matters are now reportedly under scrutiny by the Commission to Investigate Allegations of Bribery or Corruption. While no conclusions have been reached, the investigation has cast a long shadow over Shah’s public standing, with speculation rife that further legal action could follow.
Against this backdrop, Shah is now alleged to be orchestrating a move to oust the current Chairman of HNB—a move seen by critics as an attempt to rehabilitate his own image and consolidate influence within the financial sector. This effort is said to involve a small but influential group of individuals with past links to major banks and state institutions. Among those reportedly involved is R. Renganathan, a former CEO of both Commercial Bank and Sampath Bank, whose re-entry into banking circles has raised eyebrows. Also named is Prasad Samarasinghe, a former executive of Rupavahini’s corporate arm who was previously removed from his position. Samarasinghe is said to claim a familial connection to the late business tycoon Harry Jayawardena. However, individuals familiar with the matter dispute this assertion, stating instead that Samarasinghe was dismissed by Jayawardena—hardly an endorsement.
Compelling
Further complicating matters is the inclusion of a former Sampath Bank official whose asset profile in Colombo, according to documents seen by investigators, appears disproportionate to declared income. This issue, too, has reportedly been referred to the Bribery Commission, adding another layer of controversy to what is already a fraught situation.
Unions
Unions within HNB have reacted strongly to these developments. Their concern is not merely about governance, but about what they perceive as an externally driven attempt to destabilise the bank’s leadership. While some union rhetoric has unfortunately taken on ethnic overtones—objecting to what they describe as an effort by two Tamil individuals to replace the current Chairman with another minority candidate—the core of their resistance lies elsewhere. Union leaders argue that the track records and motivations of those involved do not inspire confidence and risk undermining the stability of a bank that plays a critical role in Sri Lanka’s financial system.Plans are reportedly underway for a sustained union campaign opposing Shah’s involvement in HNB affairs, citing his limited sectoral experience, unresolved questions from his tenure at the Ministry of Finance, and the broader reputational risk to the institution.
Central Bank
At a time when Sri Lanka’s banking sector is still navigating post-crisis recovery, capital adequacy pressures, and public trust deficits, any perception of backroom manoeuvring or politically motivated boardroom coups is deeply damaging. Whether these allegations hold or fall will ultimately be determined by regulators and investigators. However, the episode underscores a broader truth: governance in systemically important institutions must be beyond reproach—not merely legal, but credible, transparent, and free from personal ambition masquerading as reform. It is understood that these concerns have now been formally reported to the Governor of the Central Bank of Sri Lanka.
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