The Central Bank’s Monetary Board yesterday discontinued the services of the Board of Directors of Seylan Bank and appointed the Bank of Ceylon to oversee its operations.

“The purpose of this move was to ensure the stability of the Banking system of the country and to ensure the safety of depositors as Seylan Bank PLC presented a potential danger to the system,” a Central Bank source said.

However, the Monetary Board of the Central Bank stressed to the public that they should continue with their normal financial transactions with Seylan Bank assuring the public of the safety of deposits and the stability of the financial system. This decision was taken by the Monetary Board in view of the recent events in the Ceylinco Group and the difficulties being encountered by Seylan Bank with regard to deposit withdrawals and ensuing liquidity problems.