They had a meeting with their staff this afternoon (31) and announced their resignations, and said they would shortly launch a major newspaper network.

Gunaratne said Ceylon Newspapers chairman Tiran Alles has agreed to a suggestion by him to appoint Benett Rupasinghe as the new editor of ‘Mawbima.’

Both Gunaratne and Fernando had been making plans for several weeks now to leave ‘Mawbima’ with several of its staffers.

However, Alles got to know about their plan and told them to tender their resignations and leave with dignity, reliable sources say.

In the coming days, several employees of its editorial, distribution and printing divisions are due to resign.

It has been reported that they would be joining a newspaper and media network to be formed by Arjun Aloysius, the son-in-law of former Central Bank governor Arjun Mahendran.