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Part V · Winding Up of Licensed Bank

66. Winding up of a licensed bank

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

(1)

A licensed bank may be wound up by the Central

Bank, in any of the following circumstances: -

(a)

where the Central Bank is satisfied that the resolution measures referred to in Part II of this Act are not likely to achieve one or more of the objectives set out in section 8;

(b)

the Administrator recommends that the licensed bank be wound up, under section 21;

(c)

where the assets and liabilities of a licensed bank are partially transferred to a transferee, including a bridge bank under the provisions of Part II of this

Act; or

(d)

the Central Bank, in the process of resolution, concludes that the prospect of a successful resolution is unlikely under the provisions of Part II of this Act.

(2)

Where the Central Bank determines that a licensed bank shall be wound up due to any of the grounds specified in subsection (1), the Central Bank shall grant such licensed bank, an opportunity of being heard and take steps to cancel the licence issued to such licensed bank and commence proceedings for its winding up in accordance with the provisions of this Part of this Act.

(3)

Upon cancellation of the licence by the Central Bank under subsection (2), the licensed bank shall forthwith cease carrying out of its business within and outside Sri Lanka.

Read on from s 67

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