Banking (Special Provisions) Act 2023 · As enacted · Part V · Winding Up of Licensed Bank
86. Distribution schedule of payments in winding up
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
The payment of claims to depositors or other creditors of a licensed bank subject to winding up, shall be made only for amounts listed in a distribution schedule approved by the Central Bank.
For the purpose of subsection (1), the liquidator shall prepare a distribution schedule of payments to be made to depositors and other creditors of the licensed bank subject to winding up, consisting of claims admitted under sections 80 and 81, and submit the same for approval of the Central
Bank.
Each distribution schedule of payments shall rank and combine the payments to be made on approved claims according to their priority of payment as specified in the provisions of section 85, only if-
all payments due on approved claims of a higher priority ranking than the claims to be included, have been made in full under an earlier distribution schedule of payments, or can be made in full under this distribution schedule of payments; and
sufficient funds have been reserved to pay in full of all claims that have a higher priority ranking than the claims to be included and that are not yet approved and to ensure equal treatment of the claims that have a priority ranking equal to the ranking of the claims to be included and that are not yet approved.
If the funds available are insufficient to settle all claims of a certain priority ranking in full, the funds shall be distributed prorata among payments on those claims, and any funds shall not be allocated to payments on claims of a lower priority ranking unless such payment can be made in full on the first mentioned claims.
Immediately after the approval by the Central Bank, of a distribution schedule of payments submitted under subsection (2), the liquidator shall publish once a week for three consecutive weeks, a notice, at least in three Sinhala,
Tamil, and English daily newspapers circulating in Sri Lanka, containing information of the date when, and place where, the persons entitled to approved claims can receive the payments, or any such other manner in which the entitled persons can receive the payments listed in that distribution schedule.
Any amount included in the distribution schedule which is not paid owing to the inability to identify or contact the relevant depositors and creditors shall be deposited in a special account maintained for that purpose in the Central
Bank.
Any funds deposited under subsection (6), which is not claimed by the owner within a period of ten years after the date of the final distribution to the depositors or creditors of the licensed bank under this section, shall be deemed to be abandoned property under the Banking Act.
After all the disputed claims have been either approved or rejected by the court and all possible payments on approved claims have been made, and all amounts that could not be paid have been deposited under subsection (6), any remaining net proceeds of the winding up shall be –
distributed among all shareholders of the licensed bank subject to winding up pro rata to the nominal value of their respective share holdings, subject only to preferences among classes of shareholders;
paid to the Government where the licensed bank subject to winding up is a public corporation; or
paid to a head office of the licensed bank subject to winding up, incorporated outside Sri Lanka.