The circular states that until further notice, all vacant positions in Director Boards should be filled by either a qualified official functioning in the level of an additional secretary or by any other qualified state employee or retired state employee.
The circular also instructs ministry secretaries to keep the President's Secretary posted after finalising the new appointments.
It also adds that the appointments should be made in a manner that would not raise any complaints on political affiliations.
It is said that the main reason to issue the circular has been the controversy which had sparked from the appointment of Nalaka Godahewa as the chairman of the Sri Lanka Insurance Corporation.
Godahewa, a former chairman of SEC Sri Lanka, was heavily criticized then because of his association with companies whose stock prices made sudden and steep gains.
He was notoriously associated with the Krishh transaction where allegations were leveled that large amounts of monies were purportedly requested by members of the ruling Rajapaksa regime.
After the fall of the Rajapaksa administration in 2015, Investigations revealed that Godahewa was involved in the misuse of SEC funds, where it transpired that funds approved by the SEC board for the purpose of promoting share ownership amongst youth was diverted to an event promoted by MP Namal Rajapaksa.
This resulted in Godahewa facing charges, being remanded and he is currently out on bail, pending litigation.