Moving into the private sector, he founded the Mercantile Group of Companies that included the Merc Bank Sri Lank, Sampath Bank, the former Mercantile Credit Ltd, National Enterprise Bank ( DFCC Vardhana Bank ), Mercantile Shipping and Mercantile Leasing.
22.
Mercantile Credit Ltd, a subsidiary of Mercantile Merchant Bank, founded by Moragoda was found to defaulted on loans of 4.7 Billion Rupees ( which had been obtained by providing false information ) while Moragoda was Minister for Economic Reform.
23.
4 Where a director put contracts of a company into a partnership he was fully accountable even if his partners were entitled to part of the profit and were ignorant of his breach of fiduciary duty ( " Imperial Mercantile Credit Association v Coleman " ( 1873 ) LR 6 HL 189 ).
