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| Tuesday, 6 July 2004 |
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Hewage appointed DFCC Director A longstanding Director of DFCC Bank Maxi Prelis stepped down, at the DFCC Annual General meeting last week, making way for S. B. Hewage to be appointed as a Director of the Bank. Hewage is also the Deputy Chairman of the Readyware Industries. Prelis said that "As a Director who has been on this Board for over 23 years - 19 as ex-officio director as its CEO and over 4 years elected by the shareholders. First I wish to congratulate Hewage, and extend my best wishes for his success as a member of the Board of this great National Institution. I thank all those shareholders for the confidence they reposed in me during the past 23 years," he said. "Looking back over the years at the DFCC, all of us could take justifiable pride in its transformation, from a Share Market Midget and a somewhat ailing institution in the early 80's, to become the largest capitalised company, by-far, in the mid-nineties, as well as the most profitable listed Co., then. It was named the best managed Co. by the AsiaMoney. It has continued to thrive, and is today one of the strongest financial institutions in the country," he said. "It provided very good shareholder value over the years, while at the same time, amply fulfilling its main purpose namely, Development Banking which was vital for accelerating economic development of our country, and continues to be so even now. In fact the achievement of these twin goals, which appears to be somewhat divergent, is perhaps one of the main distinguishing features of the DFCC. L&G, there is a primary difference between DFCC Bank, a statutory body, as compared to a private sector commercial bank," he said. Speaking on the support extended by the government, he said that this takes the form of the very substantial government support over the past 49 years in the most crucial aspect for any bank-namely obtaining low cost funds particularly long-term funds, for its lending operations. It would have been prohibitively expensive - if not impossible - for the DFCC to raise such funds in the open market, like other private commercial banks. This is in effect a financial subsidy by the state, given not so much as a benefit to the shareholders, but to enable this institution to perform its difficult role and fulfil its obligations as a development bank. "The cumulative benefit of this state support during the past several decades is one of the main foundations of the excellent financial strength of the DFCC today. I most sincerely and earnestly hope, that this institution of great importance to the country at this juncture, will remain in a position to continue to fulfil its primary duty and responsibility in development banking which is vitally important today," he said. |
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