Dec 29, Colombo: Central Bank of Sri Lanka has decided to appoint the Bank of Ceylon to carry on the business of controversial Seylan Bank PLC with immediate effect.

Issuing a special statement this evening Central Bank announced that its Monetary Board has decided to discontinue the services of all current directors of Seylan Bank PLC.

The Monetary Board has dissolved the current board of Seylan Bank and asked Bank of Ceylon to appoint a new board.

According to the statement the Central Bank has taken this decision to ensure the stability of Seylan Bank PLC and the financial system following the collapse of Golden Key Credit Card Company, a member of the Ceylinco group.

However the Central bank has granted permission to continue with the services of the present CEO and all current employees of Seylan Bank PLC, without any interruption.

The statement said the Seylan Bank PLC will be open for usual business with customers on 30/12/2008 as scheduled.

The Monetary Board of the Central Bank wishes to inform the public that they should continue with their normal financial transactions with Seylan Bank PLC and that the Monetary Board assures the public of the safety of deposits and the stability of the financial system, the statement said.