Bills of Exchange (Amendment) Act 2025

This Act may be cited as the Bills of Exchange

(Amendment) Act, No. 13 of 2025.

The Bills of Exchange Ordinance (Chapter 82)

(hereinafter referred to as the “principal enactment”) is hereby amended by the substitution for the word “Ceylon”, wherever that word occurs in the principal enactment, of the words “Sri Lanka”.

Section 2 of the principal enactment is hereby amended as follows: -

by the substitution for the definition of the expression “banker”, of the following definition: -

by the insertion immediately after the definition of the expression “delivery”, of the following new definitions: -

Section 9 of the principal enactment is hereby amended in subsection (4) of that section, by the substitution for the words “shall be at the rate of nine per centum per annum:”, of the words “shall be the legal rate applicable for the time being:”.

Section 14 of the principal enactment is hereby amended by the repeal of subsection (1) of that section and the substitution therefor, of the following subsection: -

“(1) The bill is due and payable in all cases on the last day of the time of payment as fixed by the bill, or if that is a non-business day, on the succeeding business day.”.

Section 15 of the principal enactment is hereby repealed.

Section 35 of the principal enactment is hereby amended in subsection (1) of that section, by the substitution for all the words from “if a bill be indorsed-” to the end of that subsection, of the following words: -

“if a bill be indorsed “Pay D only”, “Pay D for the account of X” or “Pay D or order for collection”.”.

Act, No. 13 of 2025

Section 49 of the principal enactment is hereby amended by the repeal of subsection (5) of that section and the substitution therefor, of the following subsection: -

“(5) The notice may be given in writing or by personal communication, or by facsimile transmission or other electronic means which sufficiently identify the bill, and intimate that the bill has been dishonoured by non-acceptance or non-payment.”.

Section 64 of the principal enactment is hereby amended in subsection (2) of that section, by the substitution for the words “any alteration of the date,”, of the words “any alteration of the name of the payee, the date,”.

Section 74 of the principal enactment is hereby amended by the addition immediately after subsection (3) of that section, of the following new subsections: -

“(4) (a) A banker may, instead of presenting the cheque itself for payment, present a cheque by facsimile transmission or other electronic means for payment to the banker on whom it is drawn, by transmitting an image thereof along with the stipulated electronic payment information of the cheque.

For the purposes of this subsection –

the image of a cheque shall comprise the front view and the back view of the cheque; and

the electronic payment information of a cheque shall comprise –

the serial number of the cheque;

the code which identifies the banker and the branch on whom the cheque is drawn;

the account number of the drawer of the cheque;

the amount for which the cheque is drawn, as entered by the drawer of the cheque;

any other matter as may from time to time be prescribed by regulation made under any written law relating to payment, clearing and settlement systems.

The provisions of subsection (4) of section 52

to the presentment of a cheque for payment under subsection (4); and

to a cheque which is paid following presentment under subsection (4).

Where a cheque is presented for payment by a banker under subsection (4), the provisions of section 45 shall not be construed as being applicable and requiring the presentment to be made at the proper place or at a reasonable hour on a business day.

For the purpose of this section, where the image of a cheque, or one or more of its electronic payment information presented is inaccurate, such presentation shall be a nullity.”.

Section 76 of the principal enactment is hereby repealed and the following section is substituted therefor: -

76. (1) Where a cheque bears across its face an addition of two parallel transverse lines, either with or without the words “not negotiable”, that addition constitutes a crossing, and the cheque is crossed generally.

Where a cheque bears across its face an addition of the name of a banker, either with or without the words “not negotiable”, that addition constitutes a crossing, and the cheque is crossed specially and to that banker.”.

Section 77 of the principal enactment is hereby amended as follows: -

by the repeal of subsection (4) of that section and the substitution therefor, of the following subsection: -

in subsection (6) of that section, by the substitution for the words “to himself.”, of the words “to himself and such crossing for the purpose of collection may be placed either on the face or the rear of the cheque.”.

Section 80 of the principal enactment is hereby amended as follows: -

by the renumbering of that section as subsection (1) of that section; and

by the addition immediately after the renumbered subsection (1) of that section, of the following new subsection: -

Section 81 of the principal enactment is hereby repealed and the following section is substituted therefor: -

81. (1) Where a person takes a crossed cheque which bears on it the words “not negotiable”, he shall not have and shall not be capable of giving a better title to the cheque than that which the person from whom he took it had.

Where a cheque is crossed or uncrossed and bears across its face the words “Account

Section 82 of the principal enactment is hereby amended in subsection (1) of that section as follows: -

by the re-lettering of that subsection as paragraph (a) of that subsection; and

by the addition immediately after the re-lettered paragraph (a) of that subsection, of the following new paragraph: -

The following new sections are hereby inserted immediately after section 82 of the principal enactment, and shall have effect as sections 82A, 82B, 82C, 82D, 82E and 82F of that enactment: -

82A. (1) Subject to the provisions of subsection (2), where any cheque drawn by a customer on an account maintained by him with a bank for payment of any amount of money to another person from that account for the discharge, in whole or in part, of any debt or other liability is returned by the bank unpaid owing to –

the amount of money standing to the credit of that account being insufficient to honour the cheque;

the amount of the cheque exceeding the amount arranged to be paid from that account by an agreement made with the bank;

the drawer having issued a cheque from a closed account; or

the drawer having countermanded a cheque issued by him without any legitimate reason in terms of subsection (3), such person shall be deemed to have committed an offence and shall, on conviction, be liable to a fine equivalent to the amount of the cheque, or to imprisonment of either description for a term not exceeding two years, or to both such fine and imprisonment.

The provisions of subsection (1) shall apply only if –

the cheque has been presented to the drawee bank within a period of six months from the date on which it is drawn or within the period of its validity, whichever is earlier;

the payee or holder in due course of the cheque makes a demand for payment of the value of the returned cheque, in writing to the drawer of the cheque within ninety days of the receipt of information by him from the collecting bank or drawee bank, regarding the return of the cheque as unpaid; and

the drawer of the cheque fails to make the payment in response to such demand to the payee or holder in due course of the cheque, within ninety days of the date of the demand.

Where a drawee bank has dishonoured a cheque by writing the words “refer to drawer”,

where the cheque is deposited for collection through the account of the payee or holder in due course of the cheque, the branch of the bank in which such payee or holder in due course maintains the account, is situated; or

where the cheque is presented for payment by the payee or holder in due course of the cheque to the branch of the drawee bank, the branch of the drawee bank in which the drawer maintains the account, is situated.

the cheque return notification issued by the collecting bank;

the deposit slip acknowledged by the collecting bank; or

the cheque returned by the drawee bank.

if that body of persons is a body corporate, every director, manager, or secretary of that body corporate at the time of the commission of such offence;

if that body of persons is a firm, every partner of that firm at the time of the commission of such offence; and

if that body of persons is an unincorporated body, every individual who is a member of such unincorporated body at the time of the commission of such offence, shall be deemed to have committed that offence:

Section 83 of the principal enactment is hereby amended by the repeal of all the words from “For the purpose of this section” to the end of that section.

In the event of any inconsistency between the Sinhala and Tamil texts of this Act, the Sinhala text shall prevail.

No. 13 of 2025