Banking (Special Provisions) Act 2023 · As enacted · Part I · Resolution Authority of the Central Bank
13. Conditions for resolution
Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.
Official translationFrom Department of Government Printing, unchanged
Notwithstanding anything to the contrary in any other provisions of this Act or any other written law, where the Central Bank is satisfied that a licensed bank is, or is likely to be, no longer viable, and has no reasonable prospects of becoming viable under the circumstances set out in subsection (2), the Central Bank may decide to resolve such licensed bank under this Act.
A licensed bank is deemed to be, or is deemed likely to be, no longer viable, and has no reasonable prospects of becoming viable in any one or more of the following circumstances: -
where the Central Bank is of the opinion that a licensed bank has failed, or is likely to fail to comply with the provisions of the Banking Act, or any regulation, direction, determination, Order, or any requirement made, issued or imposed thereunder, including the regulatory, capital and liquidity requirements, in a manner that would compel the Central Bank to cancel the licence issued to such licensed bank;
where the Central Bank is of the opinion that a licensed bank is, or is likely to become, insolvent;
or
where a licensed bank is unable to meet its obligations to its depositors or other creditors, or the
Central Bank is of the opinion that such licensed bank is likely to be unable to meet its obligations to its depositors or other creditors as they fall due.
The implementation of any early intervention measures or any other supervisory measures on a licensed bank shall not be deemed as a pre-condition for the Central
Bank to exercise its resolution authority under this Act.
Where the Central Bank decides to resolve a licensed bank, it shall notify its decision in writing to such licensed bank and commence implementation of resolution measures under this Act.
Where the Central Bank decides to resolve a licensed bank under subsection (1), the Central Bank may exercise any one or more of the resolution powers set out in section 14:
Provided however, the Central Bank shall exercise at least one such resolution power within a period not exceeding thirty days from the date of notification referred to in subsection (4).
A licensed bank subject to resolution shall, after the commencement of the resolution measures under this Act, carry on its business under the control of the Central Bank.
Part II
Resolution Measures
Part III
Sri Lanka Deposit Insurance Scheme
Part IV
Financial Sector Crisis Management Committee
Part V