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Contents

Part I · Resolution Authority of the Central Bank

7. Provisions of this Part of this Act to apply to a holding company, &c. of a licensed bank

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

(1)

Where the Central Bank is satisfied that a holding company of a licensed bank, a subsidiary or associate company of a licensed bank or any entity within a financial group or conglomerate of such licensed bank, as the case may be, which is not regulated or supervised by the Central

Bank–

(a)

provides any service or performs any duty for or on behalf of such licensed bank subject to resolution, which are or are deemed to be significant to perform critical functions of such licensed bank; or

(b)

the suspension or discontinuation of such service or duty by such entities is or is likely to be detrimental to the interests of the depositors and creditors of such bank, or jeopardize the stability of the financial system of Sri Lanka, and in the event, there are no alternatives available for such licensed bank to ensure the continuity of such service or duty which is significant to perform critical functions, it shall be lawful for the Central Bank to apply the provisions of this Part of this Act to a company or entity specified in this subsection in the same manner as they apply to a licensed bank subject to resolution.

(2)

In the event of any company or entity specified in subsection (1) is regulated by a financial sector regulator other than the Central Bank, the Central Bank shall prior to taking any measures to resolve such company or entity under this Act, consult such regulator and give due notice to such regulator in respect of such measures.

Part II

Resolution Measures

Part III

Sri Lanka Deposit Insurance Scheme

Part IV

Financial Sector Crisis Management Committee

Part V

Winding Up of Licensed Bank

Schedules