(2) The provisions of this Act other than Part V shall come into operation on such date as may be appointed by the Minister by Order published in the Gazette (hereinafter referred to as the " appointed date").

(3) The provisions at Part V of this Act shall come into operation on such later date as may be appointed by 'ho Minister by Order published in the Gazette.

(2) Where such company is a company incorporated outside Sri Lanka no licence shall be issued unless such company has complied with the provisions of Part XIII of the Companies Act, No, 17 of 1982.

(3) Any company which has been issued a licence under the provisions of this Act shall, hereinafter be referred to as a "licensed commercial bank".

(4) Notwithstanding the provisions of subsections (1) and (2) of this section and of section 3 of this Act, all commercial banks specified in Schedule I to this Act, which on the appointed date are carrying on banking business, shall be issued a licence in accordance with the provisions of this Act,

(5) Any company which carries on banking business in contravention of subsection (1) shall be guilty of an offence under this Act.

For the purposes of this section "company'' means a company formed and registered under the Companies Act, No. 17 of 1982, and Includes a company duly incorporated outside Sri Lanka, or formed in pursuance of any statute of any foreign country, Royal Charter or letters patent and a body corporate established by or under any written law and shall not include the Central Bank, or a private company incorporated outside Sri Lanka except the banks specified Schedule I.

(2) Every application for a licence shall be accompanied by-

(3) On receipt of an application under subsection (1) the Monetary Board may, where such Board considers it necessary, require the applicant to furnish such other documents or particulars, in order to determine whether, a licence should be issued or not.

(4) No company incorporated in Sri Lanka under any written law shall make an application for the issue of a licence

(5) Any person who submits an application and other documents under subsections (1), (2) and (3) containing information which is to his knowledge false or misleading in any material particular, shall be guilty of an offence under this Act.

(2) The Monetary Board may, where such Board considers it necessary or expedient to do so in the interest of national economy, from time to time, make further determinations as regards the remittance of money after the expiry of a period of sis months from the date of the last of such determinations.

(3) A determination made under this section shall apply uniformly to all companies incorporated outside Sri Lanka which apply for a licence after each such determination.

(2) The licence shall specify

(3) Every licensed commercial bank shall display a copy of the licence issued to it under subsection (1) in a conspicuous place within the premises of any such bank.

(2) The Monetary Board shall inform each such licensed commercial bank the amount payable as licence lee, and the manner in which such fee shall be paid.

(3) Where a licence fee is determined in respect of classes of banking business such fee shall apply to all banks carrying on such classes of business.

the Monetary Board may, give notice that it would cancel the licence issued to such bank and shall communicate such notice to the licensed commercial bank.

(2) A licensed commercial bank may tender objections in writing to the Monetary Board against the notice of cancellation under subsection (1), within thirty days of the date of receipt of such notice, giving reasons why the licence issued to it under section 5 should not be so cancelled-

(3) After the expiration of sixty days from the date of notification of the cancellation and after considering the objections tendered to the Board under subsection (2), the Monetary Board may withdraw such notice or cancel the licence issued to the licensed commercial bank, and shall notify the bank accordingly.

(4) A cancellation of a licence under subsection (3) shall take effect

(5) Any person aggrieved by a decision of the Monetary Board in respect of any cancellation under subsection (3). may appeal against such decision to the Court of Appeal within fourteen days of his being informed by the Board of such cancellation.

(6) Until rules are made under Article 136 of the Constitution pertaining to appeals under this section, the rules made under that Article pertaining to applications by way of revision to the Court of Appeal shall apply to every appeal made under this section,

(7) The Court of Appeal may an appeal made to it under subsection (5), confirm, revise, modify or set aside the decision against which the appeal is made and make any other order as the interests of justice may require.

(2) Whereas a licensed commercial bank has failed to comply with the directions issued under subsection (1) the Monetary Board may further direct

(3) Where the Director of Bank Supervision takes charge of all books, records and assets under subsection (2) and the Monetary Board withdraws the cancellation unconditionally, the Monetary Board shall direct the Director of Bank Supervision to deliver forthwith to such bank the books, records and assets taken into his custody.

(4) Not withstanding anything in any written law for the time being in force, no action or proceedings may be instituted by any licensed commercial bank in any court in respect of any directions given bona fide under this section, and any loss or damage incurred or likely to be incurred or alleged to be incurred by reason of any such direction.

(2) Where the cancellation of a licence has been made in respect of a licensed commercial bank incorporated established within Sri Lanka by or under any written law for the time being in force, the Director of Bank Supervision shall forthwith make application to a court of competent jurisdiction to commence proceedings for the winding up of the business of such bank, and he shall be appointed liquidator for the purposes of winding up of tile bank in accordance with the provisions of Part VIII of this Act

(3) Where cancellation of a licence has been made in respect of a licensed commercial bank incorporated outside Sri Lanka, the Director of Bank Supervision shall forthwith inform the head office of such bank that it should honour the obligations and liabilities incurred in the carrying on of the business of the branch established within Sri Lanka, and shall take such steps as may be necessary to enforce any such undertaking as may have been given in this regard in accordance with the provisions of subsection (2) of section 3.

(4) The Monetary board may, in addition to the procedures laid down in subsections (1), (2) and (3) of this section, take such other steps in respect of the licensed commercial bank, as it may deem necessary by

(2) The approval under this section may be granted subject to such terms and conditions as may be specified by the Monetary Board with the concurrence of the Minister.

(2) Any licensed commercial bank to whom notice has been issued under subsection (1) may within thirty days of the date of such order, tender objections In writing to the Monetary Board giving reasons why such approval should not be withdrawn or the terms and conditions varied.

(3) After the expiration of sixty days from the date of the notice and after considering the objections placed before the Board under subsection (2), the Monetary Board shall, with the approval of the Minister

(4) Where the order for the closure has been made under subsection (1), the Monetary Board shall direct the Director of Bank Supervision to take all steps as may appear necessary in the circumstances, to satisfy himself that all persons who have deposited moneys in that bench, agency or office are given the opportunity to withdraw such moneys expeditiously and to ensure that such measures as would safeguard the interest of such depositors are taken. It shall be lawful for the Director of Bank Supervision to take such steps accordingly.

(2) The Director of Bank Supervision or such other officer so authorized by the Governor in terms of subsection (1) may require such person or the bank to furnish to him such information or to produce for inspection any books, minutes, accounts, cash, securities, vouchers, other documents and records as he may consider necessary to obtain for the purpose of such examination, and it shall be the duty of such person or bank to furnish such information and to submit to such officer for examination such books, minutes, accounts, cash, securities, vouchers, other documents and records, as the case may be, when so required.

(3) Any person who fails to furnish such information or to produce any books, minutes, accounts, cash, securities, vouchers, other documents and records when required to do so under subsection (2) shall be guilty of an offence under this Act,

(4) Any refusal by any person or commercial bank to furnish such information or to submit such books, minutes, accounts, cash, securities, vouchers, other documents and records in contravention of the provisions of subsection (2) shall be prima facie evidence of such person or bank carrying on banking business without a licence,

Provided, however, a licensed commercial bank incorporated outside Sri Lanka and carrying on the business of banking and whose names does not contain the word " bank'', " banker ", or " banking" in any language may carry on such business in Sri Lanka notwithstanding the omission of these words in its name.

(2) No firm, individual or group of individuals, shall for the purpose of carrying on any business, use as part of its or his name or description any of the words " bank", " banker " or " banking " or any of its derivatives, or its transliterations, or their equivalent in any other language

(3) Nothing in this section shall apply to

Provided however, such bank may, with the written permission of the Monetary Board, have a subsidiary which

Provided, further that the provisions of this subsection shall not apply to a subsidiary formed before the appointed date by any licensed commercial bank incorporated or established in Sri Lanka.

(2) A licensed commercial bank shall not accord to any of its subsidiary companies, treatment which is more favourable than the treatment accorded to other constituents of the bank, carrying on the same business as any such subsidiary company.

(3) For the purposes of this Act a company shall, subject to the provisions of subsection (4) of this section, be deemed to be a subsidiary of another if, and only if

(4) In determining whether one company is a subsidiary of another

(5) For the purposes of this Act, a company shall be deemed to be another's holding company if, and only if, that other is its subsidiary.

(6) In this Part the expression " equity share capital" in relation to a company, means its issued share capital excluding any part thereof which, neither in respect of dividends nor as respects capital, carries any right to participate beyond a specified amount in a distribution-

(2) The unimpaired capital shall be

Provided however, the Monetary Board may having regard to the deposit liabilities or to the total liabilities including contingent liabilities, or to the total assets or to any specified categories of such assets, of a bank, after a period of five years from the appointed date, vary from time to time the amount specified as the minimum amount required to be maintained by a licensed commercial bank as unimpaired capital. The Monetary Board shall, in writing, communicate to all licensed commercial banks any variation made by it in respect of the unimpaired capital required to be maintained by a licensed commercial bank. Where any licensed commercial bank is required by such variation to augment its capital, it shall upon application to the Monetary Board,-be afforded a Period of twelve months, or such longer period as may be granted by the Monetary Board, in which to comply with that requirement.

(3) For the purpose of computing the minimum required capital, when such amount is prescribed in reference to liabilities or assets, both capital and liabilities or assets shall be of such kind and computed in such manner as the Monetary Board may form time to time determine, having regard to the interests of national economy,

(4) In the case of a licensed commercial bank incorporated or established in Sri Lanka by or under any written law, the limit of foreign participation in the capital of such bank, shall at no time exceed the limit, established from time to time, by the Monetary Board.

(5) A licensed commercial bank shall not reduce its-

(6) A licensed commercial bank shall not create any charge upon any unpaid capital of such bank and any such charge created in contravention of these provisions shall be null and void-

(7)

(8) Nothing contained in subsections (1) and (?) shall be construed to mean that the licensed commercial banks set out in Schedule I of this Act are required to comply with the provisions of the preceding subsections before the expiry of twelve months from the appointed date.

(9) Where the capital or capital funds of a licensed commercial bank have become deficient in terms of the provisions of the preceding subsections the Monetary Board may, grant a reasonable period of time for the rectification of such deficiency.

Provided, however, that an amount not less than twenty-five per centum of the net profits shall be utilised for setting off such intangible assets as may be determined by the Monetary Board, before such profits are transferred to the reserve fund.

(2) The reserve fund of any licensed commercial bank shall not be reduced nor impaired:

Provided, however, that the Monetary Board may, specify circumstances in which the reserve fund may be reduced, and shall permit a reduction when a transfer is made for the purpose of increasing the paid-up or assigned capital, as the case may be. The Monetary Board shall permit an impairment of the reserve fund when it is the only means of preventing an impairment of paid-up of assigned capital, as the case may be, subject to the condition that within a given period of time, the deficiency shall be rectified.

Provided, however, the percentage determined by the Monetary Board shall not be less than twenty per centum and not more than forty per centum of the total of its liabilities, less its liabilities to the Central Bank and to the shareholders.

(2) The Director of Bank Supervision may, by notice in writing, require every licensed commercial bank to furnish to him such return or returns as he may deem necessary for the purposes of satisfying himself that the provisions of subsection (1) have been complied with, and every licensed commercial bank so noticed, shall furnish such return or returns as may be required.

(3) Any licensed commercial bank which fails to com ply with the provisions of subsection (1) shall, within such time as may be determined by the Monetary Board, pay to the Central Bank a charge on the amount of the deficiency calculated at such rate as may be determined by the Monetary Board.

(4) Any licensed commercial bank which fails to comply with the provisions of subsection (3) shall be guilty of art offence under this Act.

(b) borrow any sum in a designated foreign currency from any non-resident;

(c) extend accommodation to any non-resident in any designated foreign currency;

(d) engage in any transaction in. any designated foreign currency with any other off-shore unit; and

(e) engage in any other transaction authorized by the Monetary Board with the approval of the Minister, in arty designated foreign currency.

(b) a profit and loss account in respect of such year.

(2) A certified copy of the report shall be sent to the Monetary Board, and if. the Monetary Board is of the opinion that the auditor has not discharged his duty to the best of his ability the Board may, order the licensed commercial bank to appoint another auditor for the purpose of preparing a fresh report

(2) It shall be the duty of every director, officer or employee of any off-shore unit to afford to the Director of Bank Supervision or to any officer of his department or any officer authorized under section 31 whenever required so to do, in terms of subsection (1), the fullest opportunity to examine books, minutes, accounts, cash, securities, vouchers, other documents and records in his possession containing or likely to contain any such information,

(3) If any books, minutes, accounts, cash, securities, vouchers, other documents and records are not produced or information not furnished in accordance with the provisions of subsection (2), the officer so defaulting shall be guilty of an offence under this Act.

(b) a profit and loss account in respect of such year,

(2) There shall be shown in the balance sheet or in any statement annexed thereto

(b) the amount charged to revenue for Sri Lanka income tax and other Sri Lanka taxation on profits and distinguishable from such accounts, the amounts, of material, set aside or proposed to be set aside for liabilities in respect of tax due in the current year of taxation or a succeeding year ;

(c) the aggregate amount of dividends paid or proposed to be paid;

(d) the amount of remuneration of auditors ;

(e) the amount charged to revenue representing the aggregate amount of the emoluments of directors;

(f) the amount set aside or proposed to be set aside to, or withdrawn from, reserves ;

(g) under separate headings, the profit or loss or the income and expenses arising from transactions such as are not usually carried on by banking companies and are carried on owing to circumstances of an exceptional or non recurrent nature or by a change in the basis of accounting ;

(h) except in the case of the first profit and loss account after the coming into force of this Part of this Act. the corresponding amount at the end of the immediately preceding financial year for all items shown in the profit and loss account.

(2) Every licensed commercial bank incorporated outside Sri Lanka shall transmit to the Director of Bank Supervision within five months of the close of each financial year its balance sheet as at the close of the financial year and its profit and loss account for such financial year in respect of Its business in Sri Lanka.

(3) The Monetary Board may specify the form of the balance sheet and profit and loss account referred to in this Part and where such form is specified, the balance sheet and profit and loss account of every licensed commercial bank shall be prepared in such form as may be specified.

(4) Every commercial bank licensed to carry on banking business in Sri Lanka shall within six months of the close of the financial year, exhibit in a conspicuous place within the place of business of such commercial bank

(2) Every such report, which shall be completed within three months of the end of the financial year, shall contain a statement by the auditor as to whether in his opinion the balance sheet and profit and loss account contain a full wad fair and properly drawn up statement and whether they represent a true and correct statement of the bank's affairs, and if the auditor has called for as explanation or any Information from the officers or agents of such licensed commercial bank whether such explanation or information Is satisfactory,

(3) The report of the auditor made in accordance with subsections (1) and (2) shall, in the case of a licensed commercial bank incorporated or established within Sri Lanka by or under any written law, be read together with the report of the Board of Directors of the licensed commercial bank at the annual general meeting of its share-holders, and; in the case of a licensed commercial bank incorporated outside Sri Lanka, be transmitted to the head office of such licensed commercial bank. A copy of such report shall be transmitted to the Director of Bank Supervision. Where the Director of Bank Supervision is not satisfied with the report of the auditor, he may make a request to the Monetary Board for the appointment of a new auditor to submit a fresh report.

(4) If a licensed commercial bank fails to appoint an auditor under subsection (1) or the Director of Bank Super vision has made a request to the Monetary Board in terms of subsection (3), the Monetary Board shall have the power to appoint an auditor for such licensed commercial bank.

(5) Every auditor appointed under subsection (1) or (4) shall have a right of access at all times to the books, accounts and vouchers and all documents and records belonging to the licensed commercial bank, which he considers necessary for the performance of his duties, and he shall be entitled to require from the officers of such bank such information and explanations as he thinks necessary for the performance and proper discharge of his duties and functions as auditor.

(6) The remuneration of the auditor, whether appointed by the licensed commercial bank or by the Monetary Board, shall be paid by the licensed commercial bank and, in the case of an auditor appointed by the Monetary Board under subsection (4), he shall be paid such amount as may be determined by the Monetary Board.

(7) No person having an interest in any licensed commercial bank or any director, officer, employee, agent of such licensed commercial bank shall be eligible for appointment as auditor for that licensed commercial bank. Any person appointed as auditor who shall after such appointment acquire any interest in or become a director, officer, employee or agent of such licensed commercial bank shall forthwith cease to act as such auditor.

(8) Nothing contained in this section shall apply to the audit of the accounts of any licensed commercial bank which is a public corporation.

(2) Every licensed commercial bank and any subsidiary of such licensed commercial bank referred to in subsection (1) shall permit the officer authorized by the Monetary Board, to inspect at any time as requested by such officer all books, minutes, accounts, cash, securities, vouchers other documents and record relating to its business and shall be required to furnish such information concerning its business as may be requested by such officer.

(3) If any books, minutes, accounts, cash, securities, vouchers, other documents and records are not produced or information not furnished in accordance with the provisions of subsection (2) or if any information furnished or item produced is false in any material particular the defaulting licensed commercial bank or subsidiary or both, as the case may be, shall be guilty of an offence under this Act.

(2) A director of a licensed commercial bank shall be removed from the office of director if

(2) No person who has been a director or has been a chief executive officer of a licensed commercial bank which has been wound up by an Order of court shall, without the written approval of the Monetary Board, act as a director or chief executive officer of a licensed commercial bank.

(3) No licensed commercial bank shall employ or be managed by a managing agent other than an employee of such licensed commercial bank.

(2) Any licensed commercial bank dissatisfied with an order given under subsection (1), may, before the expiry of thirty days from the date of the issue of such order, appeal in writing to the Monetary Board and the Monetary Board shall render its decision within fifteen days of receipt of such appeal.

(2) A direction issued under subsection (1) shall have effect notwithstanding that such direction will require a licensed commercial bank to effect a change in the nature or amount of any of its assets or liabilities, whether acquired or incurred before or after the date of the coming into operation of this Act, provided that a licensed commercial bank which is required to so effect a change, is afforded a period of twelve months from the date of such direction or such longer period as may be granted by the Monetary Board in which to comply with that requirement.

(3) In order to comply with a direction issued to it under paragraph (d) of sub-section (1), a licensed commercial bank may direct a person holding shares in such bank to reduce the number of shares held by such person in such bank, whether such shares were acquired by such person before or after the appointed date, within, such period as may be specified in such direction; and it shall be the duty of such person to comply with such direction.

(4) A person who fails to comply with a direction given to him under sub-section (3) shall be guilty of an offence under this Act, and shall on conviction after summary trial by a Magistrate be liable to imprisonment for a term not exceeding eighteen months or to a fine not exceeding one thousand rupees or to both, such imprisonment and fine.

(2) No licensed commercial bank shall grant accommodation against the security of

(3) No licensed commercial bank shall grant any accommodation. to any of its directors or to a close relation of such director, unless such security as may from time to time be approved by the Monetary Board, is given, and such accommodation is sanctioned at a meeting of the Board of Directors with not less than two thirds of the number of directors constituting the Board of Directors of the licensed commercial bank (other than the director concerned), voting in favour of such accommodation.

(4) Accommodation granted by a licensed commercial bank to a director or to a close relation of such director shall not exceed the amount of the accommodation, if arty, extended to him or such close relation, and outstanding on the day prior to the date of his appointment as a director or on the day prior to the appointed date, whichever is later, or rupees five hundred thousand, whichever is more, and such accommodation is secured by such security as may from time to time he approved by the Monetary Board for the purposes of this section.

(5) No licensed commercial bank shall grant accommodation to any concern in which, such director who on the day prior to the date of his appointment as a director or on the date prior to the appointed date, whichever is earlier, has a substantial Interest, unless such a security, as may from time to time be approved by the Monetary Board is given, and such accommodation is sanctioned at a meeting of the Board of Directors, with not less than two thirds of the number of directors constituting the Board of Directors of the licensed commercial bank (other than the director concerned), voting in favour of such accommodation.

(6) Where any accommodation has been granted by licensed commercial bank to a person or a close relation of a person or to any concern in which the person has a substantial interest and if the person is a director of that licensed commercial bank on the appointed date or is appointed a director after the appointed date, steps shall be taken to obtain such security as may be approved for that purpose by the Monetary Board, within one year from the appointed date or from the date of appointment as director, whichever is applicable.

(7) Where such security has not been, provided as specified in subsection (6), the licensed commercial bank shall take steps to recover any amount due on account of any accommodation together with interest, if any, due thereon

(8) Where no security has been provided within the period specified in subsection (6), or the amount due has not been repaid in tense of subsection (7) in respect of an accommodation granted to a director or to a concern in which the director has a substantial interest such Director shall be deemed to have vacated office on the expiry of the period specified in subsection (7).

(9) Every director of a licensed commercial bank, who is in any manner whatsoever, whether directly or indirectly, Interested in any accommodation or proposed accommodation from that licensed commercial bank, shall as soon as is practicable, declare the nature of his interest to the Board of Directors and the Secretary or Manager of such licensed commercial bank shall cause the declaration to be circulated forthwith to all the directors,

(10) A director shall not take part in any deliberations or decisions of the Board with regard to any business trans acted or proposed to be transacted by a licensed commercial bank in which the director or a close relation of the director, or a concern in which the director has a substantial interest, is interested, and the director shall withdraw from the meeting of the Board at which such business is discussed or transacted while the deliberation is in progress or decision is being made.

(11) No accommodation or any part thereof granted by a licensed commercial bank to a director or to a close relation of the director or to a concern in which the director has a substantial interest shall be remitted without the prior approval of the Monetary Board, and any remission without such approval shall be void and of no effect.

(12) Any director who contravenes the provisions of sub sections (9) and (10) shall be guilty of an offence under this Act.

(13) For the purpose of this section

" company " shall not include a company incorporated outside Sri Lanka ;

" director " shall not include a director of a licensed commercial bank incorporated outside Sri Lanka.

(2) The provisions of the preceding subsection shall not apply to any such business as aforesaid, which was being carried on by a bank on the appointed date:

Provided that the said business shall be completed before the expiry of one year from the appointed date.

(b) the liquidation has been approved by the affirmative vote of the shareholders of at least three-fourths of the outstanding shares entitled to vote at a meeting called expressly for this purpose :

Provided that if the liquidation is to be affected in whole or in part through the sale of any of the assets of the licensed commercial bank to, and the assumption of its deposit liabilities by, another licensed commercial bank, the Monetary Board may, upon a finding of imminent danger of insolvency, waive the requirement for shareholder approval:

Provided further, that the provisions of paragraph (c) of subsection (1) of section 12 shall not apply to such assumption of liabilities.

(b) repay sums of money due to its depositors and other creditors;

(c) wind up all operations undertaken prior to the receipt of the authorization.

(b) any funds payable to depositors, other creditors and owners who have not claimed them, have been transmitted to the Central Bank ;

(c) any other funds or property held by the licensed commercial bank which could not be returned to the rightful owner in accordance with the provisions of this section, have been dealt with in accordance with section 72.

(b) the completion of voluntary liquidation is unduly delayed,

it shall forthwith take steps to revoke the licence issued to such bank and commence proceedings for the compulsory liquidation of such bank in conformity with the procedures set out hereunder.

(b) to stop or limit the payments of its obligations;

(c) to execute any instrument in the same of the licensed commercial bank; and

(d) to initiate, defend and conduct in its name any action or proceedings to which the licensed commercial bank may be a party.

(b) any attachment or lien, except a lien existing six months prior to the date as specified in paragraph (A), shall be vacated, and no attachment or lien, except a lien created by the Director of Bank Supervision, in the application of the provisions of this Part, shall attach to, any property or assets of the licensed commercial bank in liquidation;

(c) any transfer of any assets of the licensed commercial bank made after or in contemplation of its insolvency shall be void,

(2) A lessor who shall have received ninety days notice that the Director of Bank Supervision is exercising discretionary powers to terminate the lease shall have no claim for rent other than rent accrued on the date of termination of the lease, not for damages by reason of such termination.

2. The money referred to in paragraph (a) and articles referred to in paragraph (b) shall be deemed to be abandoned property for terms of the provisions of Part IX. if the owner thereof) has, over a period of ten years from the date of deposit of such money or articles, as the case may be, not evidenced an interest in the same. The provisions of section 72 shall apply in. respect of such items as from the date of their transfer.

(b) determine the amount, if any, owing to each identifiable depositor or other creditor and the priority attaching to his claim under the provisions of this Act;

(c) prepare a Schedule of the scheme of work he proposes to take;

(d) notify each person whose claim has not been allowed in full, and publish once a week for three consecutive weeks, a notice in three daily newspapers in the Sinhala, Tamil and English languages, which contains on intimation of the date and place, where the Schedule of the scheme of work he proposes to take, will be available for inspection. The date so intimated, shall be a date not sooner than thirty days from the date of the third publication in the newspaper, upon which the Director of Bask Supervision will file the Schedule in Court.

(2) Alter payment of all other claims filed, with interest thereon calculated at a rate to be fixed by the Director of Bank Supervision, with the approval of the Court, any remaining claims which were not filed within the prescribed time shall be paid.

(3) If the amount available in respect of a particular category of claims is insufficient to provide payment in full," the said amount shall be distributed pro-rata among the parties of that claim-

(2) When a cancellation of the licence of a licensed commercial bank incorporated outside Sri Lanka has been made final under subsection (3) of section 9, the licensed commercial bank shall terminate its business in Sri Lanka and its affairs shall be wound up in accordance with the provisions of subsection (4).

(3) When liquidation proceedings in respect of a licensed commercial bank incorporated outside Sri Lanka are started at the place where the head office is located, the Monetary Board shall order the closure of the licensed commercial bank in Sri Lanka.

(4) When the business of the licensed commercial bank is closed down under subsections (1) or (2) or (3), the licensed commercial bank which is the subject of liquidation, shall retain only such powers as are necessary to wind up its affairs within Sri Lanka, which shall be done expeditiously and in an orderly manner. The Director of Bank Supervision shall supervise the winding up under subsection (1) or (2) or (3) of this section, in accordance with the provisions of subsections (1) and (3) of section 11, take all measures necessary to ensure that no assets owned by the licensed commercial bank, which is the subject of liquidation are removed from. Sri Lanka until all obligations and liabilities incurred by such bank, to which the undertaking referred to in paragraph (c) of subsection 2 of section 3 relates, have been met In accordance with the undertaking. The provisions of sections 63 and 68 shall apply to the winding up of the affairs under this section,

(5) Where the Monetary Board is of the opinion that the licensed commercial bank has discharged all the obligations referred to in the preceding provisions of this section. the name of such bank shall be removed from the list of licensed commercial banks.

(2) The following shall be the articles referred to in subsection (1) :

(2) Notwithstanding anything in any other law, all monies included in the report shall, if the Monetary Board directs, be transferred by the licensed commercial bank to a special account in the Central Bank and may be utilised by the Monetary Board for such purposes as may be determined by the Monetary Board after consultation with the Minister.

(3) The articles included in the report that do not fall under subsection (2) shall be referred by the Monetary Board to the Minister for such action as he shall prescribe.

(b) in the performance of his duties ; and

(c) in order to comply with any of the provisions of this Act or any other law.

(2) Every person who is guilty of an offence under this Act for which no punishment has been specified under subsection (1), shall, after summary trial before Magistrate, be liable to imprisonment for a term not exceeding eighteen months or to a fine not exceeding five hundred thousand rupees or to both such imprisonment and such fine.

shall be guilty of an offence under this Act, and shall, on conviction after summary trial by a Magistrate, be liable to a term of imprisonment for a term not exceeding eighteen months or to a fine not exceeding one thousand rupees or to both such imprisonment and fine.

(2) In any proceedings against a person under subsection (1) it shall be a defence to prove that be had reasonable grounds to believe that another person was charged with the duty of securing compliance with the requirements of this Act or with the duty of ensuring that these statements were accurate and that such person was competent and in a position to discharge that duty.

(2) Every regulation made by the Minister shall be published in the Gazette and shall come into operation on the date of such publication or on such later date as may be specified in the regulation.

(3) Every regulation made by the Minister shall, as soon as is convenient after its publication in the Gazette, be brought before Parliament for approval-

(4) Every regulation which is not so approved shall be deemed to be rescinded as from the date of such disapproval but without prejudice to anything previously done there under. Notification of the date on which any regulation is deemed to be rescinded shall be published in the Gazette.

(ii) an " approved bank" for purposes of the Finance Act, No. 65 of 1961.

(b) in relation to a licensed commercial bank incorporated outside Sri Lanka, any person by whatever designation he may be called earring out or empowered to carry out substantially the same functions in relation to the direction of the licensed commercial bank as those carried out by a director of a company incorporated under the Companies Act and the person in Sri Lanka responsible for carrying out the functions of such licensed commercial bank who shall be designated the principal authorized agent or his alternate;

(b)balances with licensed commercial banks;

(c) money at call in Sri Lanka;

(d) treasury bills and securities issued or guaranteed by the Government of Sri Lanka which have a maturity not exceeding one year;

(e) goods receipts ;

(f) import and export bills ;

(g) such other assets as may be determined by the Monetary Board;

(b) a firm of Accountants each of the resident partners of which, being a member of the Institute of Chartered Accountants of Sri Lanka or of any other Institute established by law, possesses a certificate to practice as an Accountant issued by the Council of such Institute ;

(b) an individual who is not a citizen of Sri Lanka but who has been, in Sri Lanka for at least six months and continues or intends to be in Sri Lanka;

(c) a company incorporated in Sri Lanka, or a body corporate established under any written law or any firm, partnership or other organization in Sri Lanka;

(d) a branch subsidiary, affiliate, extension, office or any other unit of a company or other judicial person established under the laws of any foreign country, operating in Sri Lanka;

(b) in relation to a firm, means the beneficial interest held therein by an individual or his close relation, whether singly or taken together, which represents more than ten per centum of the total capital subscribed by all partners of the said firm or the existence of a guarantee or indemnity given by an individual or his or her spouse or parent or child on behalf of such firm.