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As enacted
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Part II · Resolution Measures

38. Cross-border cooperation

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

(1)

Notwithstanding anything contained in this Act or in any other written law for the time being in force, the

Central Bank shall have authority to enter into agreements, memoranda of understanding and arrangements for the coordination, cooperation and the exchange of information with relevant authorities established outside Sri Lanka, including supervisory or regulatory authorities of banks in other jurisdictions outside Sri Lanka:

Provided however, if the Central Bank is of the opinion that any confidential information, if exchanged with any such authority cannot be secured due to the unavailability of duty to preserve confidentiality in such authority, the

Central Bank shall not exchange such information with any such authority outside Sri Lanka.

(2)

The agreements, memoranda of understanding and arrangements with the relevant authorities outside Sri Lanka referred to in subsection (1), shall include the following: -

(a)

procedures for the timely exchange of information on matters agreed between the parties including consultations, prior notifications, regulatory or supervisory concerns, recovery plans, resolvability assessments, resolution plans, early intervention measures and resolution actions;

(b)

procedures for the coordination of resolution measures;

(c)

procedures for the recognition and facilitation of resolution measures taken by foreign regulatory authorities and the Central Bank;

(d)

restrictions on the use of information for purposes other than those for which the information is shared;

(e)

stipulation that the information be treated in a confidential manner and not be further disclosed without the express consent of the Central Bank;

and

(f)

any other matter which the parties may consider necessary for the effective implementation of resolution measures under this Act.

(3)

The Central Bank may, on the request of a foreign resolution authority, make an Order that the effects of a resolution measure of such foreign authority be fully or partially applicable in Sri Lanka:

Provided however, the Central Bank shall not make such

Order where the Central Bank is of the opinion that -

(a)

in terms of its objective and anticipated results, the foreign resolution measure is not comparable to the exercise of resolution powers under this Act;

(b)

the relevant laws of the foreign resolution authority’s jurisdiction do not allow for the recognition of the Central Bank’s resolution measures on request;

(c)

recognizing a foreign resolution measure would not contribute to the achievement of resolution objectives under this Act;

(d)

creditors of the licensed bank in Sri Lanka would not be treated equitably under the foreign resolution proceedings;

(e)

such recognition would have material adverse fiscal implications in Sri Lanka; or

(f)

such recognition would contravene the public policy of Sri Lanka.

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