Skip to content
srilawsby aturio
As enacted
Contents

Part III · Sri Lanka Deposit Insurance Scheme

39. Establishment of a deposit insurance scheme

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

The Central Bank shall, in order to uphold the public confidence in the financial system and to promote, and contribute to, the stability of the financial system in

Sri Lanka, establish a scheme called Sri Lanka Deposit

Insurance Scheme (hereinafter referred to as the “Scheme”)

under this Act, for the purposes of-

(a)

insuring the deposits made by the depositors in an institution which is a member of the Scheme

(in this Part of this Act referred to as a “member institution”) in order to compensate such depositors up to any maximum amount as may be determined by the Central Bank, from time to time, subject to subsection (9) of section 44, in the event the licence issued to such member institution is cancelled by the Central Bank; and

(b)

establishing a system for providing appropriate financial assistance to facilitate transfer of assets and liabilities of a member institution as a resolution measure, subject to safeguards.

Read on from s 40

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