Banking (Special Provisions) Act 2023 · As enacted · Part II · Resolution Measures
24. Recapitalization by new shareholders
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
Without prejudice to the provisions of section 23
and for the purposes of recapitalization of a licensed bank by new shareholders, the Central Bank-
shall, if not already determined in accordance with the provisions of paragraph (a) of subsection (1) of section 23, determine the extent of losses and prepare the financial statements of such licensed bank covering the amount of such losses from and out of the profits, reserves and, if necessary, the capital and subordinated debt and any other instrument issued for the purpose of loss absorbency of such licensed bank;
may cause revaluation of the stated capital to reflect losses, notwithstanding anything to the contrary in any other written law;
may determine the amount and type of funding needed to bring such licensed bank into compliance with all capital requirements made under this Act;
may cause such licensed bank to issue additional capital in any form as may be determined by the
Central Bank in order to comply with the capital requirements applicable for licensed banks imposed by the law for the time being in force.
Notwithstanding anything to the contrary in any other written law, the Central Bank may, in relation to regulation of the securities market and other disclosures to be made by issuers of securities, cause such licensed bank to issue shares under the provisions of this section.
The Central Bank shall have the power to recognize losses to be allocated to shareholders and subordinated debt holders in the performance of its duties under this section.
Part III
Sri Lanka Deposit Insurance Scheme
Part IV
Financial Sector Crisis Management Committee
Part V