46. Amendment of section 86 of the principal enactment

““Auditor General” means the Auditor General appointed under Article 153 of the

Constitution;”;

““beneficial owner” means a natural person who ultimately owns or controls ten per centum or more of a company, in whole or in part,

Central

Bank to inform any person to furnish any information

& c.

through direct or indirect ownership or control of shares or voting rights or other ownership interest in that company, and also includes a natural person who exercises effective control through other means, and beneficial ownership is to be construed accordingly;

“Board of Directors of a branch of a licensed commercial bank incorporated outside Sri

Lanka” means the Head Office or Regional

Office of such licensed commercial bank that supervises the respective branch or a management committee for which powers on overseeing the management have been delegated by such Head Office or the

Regional Office, as the case may be, to act as the Board of Directors of such branch;”;

“concern” of the following:-

““control relationship” means the ability of one borrower of a licensed commercial bank to influence over the activities of other borrowers of such bank;”;

“Director of Bank Supervision” and the substitution therefor of the following:-

““Director of Bank Supervision” means an employee of the Central Bank who is the head of the department of the Central Bank which is entrusted with the regulation and supervision of the licensed commercial banks and licensed specialised banks in

Sri Lanka;”;

“domestic banking business”, and the substitution therefor of the following:-

““economic interdependence” means the dependence of one borrower of a licensed commercial bank on a business of any other borrower of such bank where it is likely that the financial difficulties of the latter may impair the repayment capacity of the first mentioned borrower;

“engagement partner” means the partner or other person in the audit firm who is responsible for the audit engagement and its performance, and for the auditor’s report that is issued on behalf of the audit firm, and who, where required, has the appropriate authority from a professional, legal or regulatory body;

“exposures” means accommodation and all financial investments;”;

of the following:-

““international standards” means the standards that comprise of principles, guidelines, processes, or characteristics, that have been developed through the consensus of experts from many countries and published by a globally recognized institution including the Basel Committee on

Banking Supervision, the Financial

Stability Board and such other similar standard setting institution;”;

““Minister” means the Minister assigned the subject of Finance in terms of Article 44

or 45 of the Constitution;”;

““non-financial subsidiary” means a subsidiary of a licensed commercial bank or a licensed specialised bank which carries out the business other than the business of a

‘financial sector participant’ as defined in the Central Bank of Sri Lanka Act, No.16

of 2023;”;

““offshore banking business” means the provision of banking business by a licensed commercial bank in any designated foreign currency to non-residents, and to certain residents as may be determined by the Central Bank, from time to time;

“physical presence” means meaningful mind and management located within a country and does not include simple or mere existence of a local agent or low-level staff of such country; ”;

“resident” of the following: -

““shareholder” shall have the same meaning as given in the Companies Act, No. 07 of 2007;

“shell bank” means a bank that has no physical presence in the country in which it is incorporated and licensed, and which is unaffiliated with a financial group that is subject to effective consolidated supervision;”;

““unlawful activity” shall have the same meaning as given in the Prevention of

Money Laundering Act, No. 5 of 2006.”