'Younger board members needed' in Sri Lanka

Younger directors are required to improve standards of corporate governance in Sri Lanka and prevent the country's boardrooms from becoming "an old boys' club".

This is according to several experts who spoke to the nation's Sunday Times newspaper about the issue, with one chief executive claiming Sri Lanka's boardroom culture exists to preserve the interests of a select few individuals.

The publication cited a recent interview with central bank governor Ajith Nivard Cabraal, who told the Business Times the financial sector would benefit from the fresh impetus provided by younger executives with progressive ideas.

"We hardly have directors who are 40 or below in bank boards and we're lacking in this aspect of bringing in young blood to help set a higher growth path," he commented.

The newspaper explained that the boards of Sri Lankan companies also face issues over the independence of non-executive directors, as many are associated with firms for a long period of time and see their decision-making abilities clouded by familiarity.

In a survey of corporate governance in Sri Lanka carried out by KPMG in 2007, 77 per cent of respondents said they believe board involvement in governance practices will increase.