Tribute from a colleague and friend

Mr. Lakshman Kannangara

(A memorial oration delivered at the Methodist Church Kollupitiya on the 10th September, 2010 by Joan de Zilva Moonesinghe, Central Bank, former Bank Supervision Director)

We have all come here today with bowed heads and heavy hearts to participate in a solemn service in memory of the late Mr Lakshman Kannangara. It is a time when we can pause to consider what manner of man he was. We can be proud of the fact that a great and good man worked and walked with us. It is therefore my privilege today to say a few words about a man who I had the distinct pleasure of working with, for most of my career spanning 40 years at the Central Bank.

The two words that so easily come to my mind of this experience, that aptly describe him, are that he was a - gentle man - and, therefore, in every sense of the word a Gentleman. I must confess that it is only now that the true meaning of the word has dawned on me. I am sure I am not alone in saying this and there can be no one at the Central Bank either, who has ever heard a harsh word from the mouth of Mr. Kannangara , as he was respectfully known. It was the great qualities of the heart that endeared him to all those who worked with him. An affectionate father and husband and a gentleman of noble heart, nothing was ever found in his long and distinguished professional life, that would cast a shadow upon his character.

For my personal experience of the late Mr. Kannangara, I count my blessings having known him in my journey through life. I am grateful to God for these people who have enriched my life so much like Mr. Kannangara did. He was the greatest influence in my working life at the Central Bank where I first came under his tutelage as his Secretary. My proficiency in the correct use of English grammar and punctuation, I owe entirely to him. These were my formative years at an institution which shaped my professional destiny and Mr. Kannangara's influence in guiding that destiny was indeed profound.

He was always so willing to listen to everybody and despite his superior intellect and position at the Central Bank, was completely devoid of dogmatic self-conceit. It was always a pleasure to see how he, systematically, acquainted himself with all the facts of a given case, listened to the views of those who he expected to have knowledge of the subject, and even suffered fools gladly. But , finally, his decisions were his own and since they were well considered, won the respect and agreement of his subordinates and his superiors.

It was not only his Oxford education but his sharp intellect and mastery of the English language, that gave him the ability to speak in tune with the occasion. He was able to drive home his points in a lucid style and in his impeccable Oxford English, projected his own point of view without in any way wounding the sensibilities of those around him.

He was more than gentle he was religious - in an interview with Roshan Peiris he has said that religion was a formidable solace in his life.

As a career central banker spanning a period of 36 years, he was an integral part of the rich history of the Central Bank. He bestrode an era of gentleman bankers who played by the rules of established banking practice and not by the dictum of law, who did not compromise their hallowed fiduciary responsibility to the depositors, for the sake of personal gain or shareholder value. Accordingly, to govern through moral suasion in the absence of legal empowerment, befitted men of the calibre and integrity of Mr. Kannangara, who commanded the respect and the ear of the banking community on the other side of the street.

This regulatory environment was thus the precursor to the banking legislation that ensued and which took shape under the remit of Mr. Kannangara. Some of his greatest contributions were in the area of bank supervision and regulation. The Banking Act which is the legal framework for the banking system which dominates our financial system, was the result of a gestation period of 10 long years of his hard work. There are many officers of the Central Bank present here today who cut their teeth in central banking under his advice and guidance. In fact that he was able to work so easily with all of them on the banking legislation, is testimony to his ability to understand and appreciate people of widely different perspectives and temperaments.

The Banking Act is indeed an important milestone in the annals of the Central Bank and, in the distinguished career of Mr. Kannangara at the Central Bank.

He was also the architect of the establishment for the first time, of the Foreign Currency Banking Units (FCBUs) or offshore banking units (OSBUs) as they are called today, within the licensed banks, with the objective (at that time,) of making Sri Lanka an offshore banking hub. He was quite excited about this initiative, having travelled widely in the region to acquaint himself with best practice on the subject.

One of his landmark decisions as Director of Bank Supervision, which I remember very vividly, was to decline the application of the infamous Bank of Credit & Commerce International (BCCI) for a licence to operate in Sri Lanka. His decision was overturned by the powers that were at that time. Many of us here today are aware of the wisdom of that decision and, as if to prove his point and hindsight at that time, his decision was vindicated in the global collapse and extinction of the BCCI several years later.

The evolution of Sri Lanka's banking system since then, from one of foreign dominance, to a, predominantly, indigenous, banking system has not been without its pitfalls. The high market entry standards that central bankers like Mr. Kannangara had firmly established, have been diluted and compromised in the process of this evolution and I was, personally, a witness, long after Mr. Kannangara, to their inevitable consequences. Which prompted me to wonder at that time how different things would have been if men of Mr. Kannangara's ilk, whose superior wisdom would have helped and guided his peers at the helm of affairs at the Central Bank. Which prompts me to conclude that he was a man for the times and would have been quite uncomfortable in the banking environment that evolved after his time.

It would do the present generation of central bankers and regulators well to acquaint themselves with the history of the Bank Supervision Department under the helm of directors such as Mr. Kannangara , especially with the wisdom of their decisions which are well documented.

Many are the landmark decisions taken in the 60 year history of the Central Bank that bear his indelible stamp. I have only attempted to highlight those which I was associated with. It was only today that the former senior Deputy Governor of the Central Bank talked to me of the invaluable contribution made by Mr. Kannangara in the publication of the Annual Report of the Central Bank, that singular, important, statement of the Central Bank. The highest standards of English he upheld, made the quality of writing in the Annual Report on par with the best in the world.

He was also the first of the Directors of Bank Supervision at the Central Bank, to be picked by the Commonwealth Secretariat in the UK, for an advisory assignment abroad in the field of bank supervision and regulation. The high standards he set during this assignment, created a demand and paved the way, for his successors in that position, for similar assignments for many, many, years thereafter.

We will never forget the occasions on which he very generously threw open his gracious home to the staff of the Bank Supervision Department, so that we may have our annual get-togethers. The generosity and hospitality displayed by both Mr. and Mrs. Kannangara saved us considerable expenses on venues we would have had otherwise to hire.

Mr. Kannangara also served as Sri Lanka's alternate director at the IMF in Washington DC and I am sure Mrs. Kannangara has very pleasant memories of that tour of duty. This was more in the line of a diplomatic assignment which Mr. Kannangara had all the attributes for.

In retirement, he was happy to be intellectually occupied for many years thereafter, as a Director of the Union Bank, as an advisor to the Central Bank at the Centre for Banking Studies, training young recruits to the Department of Bank Supervision, and with several editorial assignments for the Central Bank. Mrs. Kannangara will surely feel a gaping space in her daily life and an emptiness within. But the fulfillment she will get from the thought that she did all within her power and means to give her beloved husband all the love, care and attention, will surely take away any remorse in the realisation that, the time had come when he was better off with his creator and that his suffering should now cease.

I was a witness on many occasions to how truly blessed Mr. Kannangara was, with a family and friends who loved him dearly; love and attention from his devoted wife, his loving daughters, his grandson, his sister and his large circle of good friends, who were close at hand at all times, to ease his pain and to make him happy.

A man of integrity, wisdom and compassion, "it needed not the shadows of death to make the figure of the late Mr. Kannangara loom large in the estimate of his family, friends and colleagues." - May his soul rest in peace.

Joan de Zilva Moonesinghe.