Banking (Special Provisions) Act 2023 · As enacted · Part V · Winding Up of Licensed Bank
77. Finality in payment, clearing and settlement systems
Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.
Official translationFrom Department of Government Printing, unchanged
Notwithstanding anything to the contrary contained in the provisions of this Act or any other written law for the time being in force-
any irrevocable money or securities transfer order that has been entered by a licensed bank into a payment or securities settlement system recognized as such by the Central Bank shall be legally enforceable and binding on third parties, despite the issuing of a winding up order against the licensed bank, provided that such transfer order has become irrevocable before the winding up order takes effect; or
where a licensed bank enters any irrevocable money or securities transfer order into a payment or securities settlement system after the winding up order issued against the licensed bank takes effect, and such transfer order is carried out on the day of coming into effect of the winding up order, such transfer order shall be legally enforceable and binding on any third party.
Any written law for the time being in force on the setting aside of contracts and transactions entered into or made before the coming into effect of the winding up order, shall not have effect on unwinding of a netting by a payment or settlement system recognized by the Central Bank.
For the purposes of this section –
a transfer order entered into a payments or securities settlement system becomes irrevocable at the time defined by the laws, regulations or rules applicable to that system; and
"netting" means the conversion into one net claim or one net obligation of all claims or obligations resulting from transfer orders, which a participant or participants in a settlement system either issue to, or receive from, one or more other participants in that system with the result that only a net claim or a net obligation remains.