Banking (Special Provisions) Act 2023 · As enacted · Part V · Winding Up of Licensed Bank
87. Winding up proceedings concerning a licensed bank incorporated or established outside Sri Lanka
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 winding up proceedings may be commenced against a licensed bank incorporated or established outside
Sri Lanka -
if such licensed bank wishes to close down its business in Sri Lanka with the prior written approval of the Central Bank, subject to such terms and conditions as the Central Bank may specify;
if any of the grounds listed in section 66 applies to such licensed bank as if it were a separate legal person; or
on the petition by the Central Bank, if the winding up proceedings have commenced against the licensed bank in the country in which such licensed bank is incorporated or established or where such licensed bank principally carries on its business.
The provisions of this Part of this Act relating to the winding up of a licensed bank shall apply to the winding up of a licensed bank incorporated or established outside
Sri Lanka, as they apply to a licensed bank incorporated in
Sri Lanka.
All assets, liabilities, acts and omissions of the licensed bank subject to winding up incorporated or established outside Sri Lanka resulting from, or otherwise relating to, the business carried out by such licensed bank in Sri Lanka shall be attributed to that licensed bank when applying the provisions of this section.
The liquidator shall be authorized to take all actions with respect to such licensed bank as could be taken, as if such licensed bank was a licensed bank incorporated in
Sri Lanka.
At the time when the order of the court to commence winding up proceedings against a licensed bank incorporated or established outside Sri Lanka is served, such licensed bank shall cease all its activities carried out in Sri Lanka, except for permissible activities carried out by it with the prior written approval of the liquidator.
In the application of the provisions of this Part of this
Act in winding up proceedings against a licensed bank incorporated or established outside Sri Lanka, only the provisions of section 83 shall apply to the setting off and netting of obligations resulting from, or otherwise relating to, the business of such licensed bank in Sri Lanka.
The liquidator shall take all measures necessary to ensure that no assets owned by the licensed bank subject to winding up incorporated or established outside Sri Lanka, are removed from Sri Lanka until all obligations and liabilities incurred by such licensed bank, to which the undertaking given by such licensed bank to the Central Bank at the time of obtaining the licence to carry on banking business under the Banking Act, have been met in accordance with such undertaking.