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Part II · Resolution Measures

34. Capitalization of a licensed bank having systemic impact

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

(1)

Without prejudice to the provisions of section 30, where the Government is of the opinion that the failure of a licensed bank can have systemic importance or impact, it shall have the authority to resolve such licensed bank.

(2)

In resolving a licensed bank under subsection (1), the

Government may infuse capital for such licensed bank through –

(a)

participation of the Government in the recapitalization of such licensed bank; or

(b)

taking over such licensed bank into temporary public ownership.

(3)

The conditions set out in subsection (2) of section 33

shall mutatis mutandis apply to a licensed bank subject to resolution under this section.

Read on from s 35

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