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Part I · Resolution Authority of the Central Bank

16. Valuation of assets and liabilities of a licensed bank for the purpose of resolution

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

(1)

In order to assess the value of the assets, liabilities or shares of a licensed bank for the purpose of resolution, the Central Bank may, at any time before the implementation of any resolution measure, direct such licensed bank to cause a prudent and realistic valuation of the assets, liabilities or shares of such licensed bank to be carried out by an independent professional valuer who shall possess such qualifications and experience as may be determined by the

Central Bank, from time to time.

(2)

Notwithstanding the provisions of subsection (1), the

Central Bank may cause a valuation of the assets, liabilities or shares of a licensed bank to be carried out through an independent professional valuer who shall possess qualifications and experience referred to in subsection (1).

(3)

Where a definitive valuation for resolution purposes is not possible due to the urgency of taking resolution measures, the Central Bank may-

(a)

direct a licensed bank to cause a provisional valuation to be carried out; or

(b)

directly undertake a provisional valuation:

Provided however, such provisional valuation shall be complemented with a final independent valuation, as soon as practicable.

(4)

The payments to be made to the valuer under subsections (1) and (2) shall be borne by the licensed bank in accordance with such terms and conditions as may be determined by the Central Bank.

(5)

The Central Bank shall have the authority to appoint and publish a list of professional valuers for the purposes of this section.

(6)

The Central Bank may issue directions, from time to time, for the purpose of giving effect to the provisions of this section.

Read on from s 17

Part II

Resolution Measures

Read on from Part II

Part III

Sri Lanka Deposit Insurance Scheme

Read on from Part III

Part IV

Financial Sector Crisis Management Committee

Read on from Part IV

Part V

Winding Up of Licensed Bank

Read on from Part V

Schedules