As enacted

Contents

Central Bank of Sri Lanka Act 2023 · As enacted · Part IX · Supervision and Resolution of Financial Institutions

61. Supervisory authority of the Central Bank

Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk

(1)

The Central Bank shall be exclusively responsible for the regulation, licensing, registration and supervision of financial institutions. Such responsibility shall include the imposition of administrative measures within the meaning of section 107.

(2)

Any employee of the Central Bank or any other qualified person authorized by the Central Bank shall examine the books and accounts of financial institutions, at least once in each examination period, and shall make such further examinations in respect of any financial institution, whenever required so to do by the Governor of the Central

Bank.

(3)

A report on the results of each examination under this section shall be furnished to the Governing Board.

(4)

Any person authorized by the Central Bank may–

(a)

administer oaths or affirmations, in accordance with the Oaths and Affirmations Ordinance

(Chapter 17), to any director, officer, or employee of any financial institution;

(b)

require any director, officer, or employee to furnish such information as such person may consider necessary for the purpose of ascertaining the true condition of the affairs of any such financial institution; or

(c)

require any director, officer, or employee to produce for inspection any book, record, or other document in his possession containing or likely to contain any information.

(5)

It shall be the duty of every director, officer or employee of any financial institution to afford to the Central

Bank or to any person authorized by the Central Bank an opportunity to examine books and records and its cash, assets, liabilities and general condition, whenever so requested by the Central Bank.

(6)

The Central Bank may, for the purpose of the continuous supervision of financial institutions–

(a)

require any such financial institution, to furnish from time to time and within such period as may be specified, such statement and information relating to the business or affairs of such financial institution, as it may consider necessary to obtain for the purpose of ascertaining the true condition of the affairs of such financial institution;

(b)

require the auditor of any such financial institution, to furnish to it within such period as may be specified, any information in relation to an audit carried out by such auditor of such financial institution, as it may consider necessary to obtain for the purpose referred to in paragraph (a); and

(c)

examine the books and accounts kept by any such financial institution as it may deem necessary for the purpose of verifying the accuracy of any statement or information so furnished.

(7)

Any employee of the Central Bank or any other qualified person authorized by the Central Bank shall examine the books and accounts of any subsidiary or agency of any financial institution including the overseas operations of such financial institution, if directions in that behalf are given by the Central Bank.

(8)

The Central Bank may exchange information and data obtained under subsection (4) or (6), in whole or in part or aggregate form, from the classes of financial institutions determined in accordance with the nature of their business, with competent authorities in or outside Sri Lanka that are entrusted with –

(a)

the supervision of other financial institutions;

(b)

the supervision of financial markets;

(c)

maintaining the stability of the financial system through the use of macroprudential policy; and

(d)

the reorganization or resolution of financial institutions, and may enter into an agreement with any of such authorities for determining the procedure for the exchange of information and data and specifying their respective roles and duties.

(9)

The Central Bank may disclose information and data obtained under subsection (4) or (6), in whole or in part or aggregate form, from the classes of financial institutions determined in accordance with the nature of their business in accordance with section 79.

(10)

In this section-

“examination period” means a period of such duration as may be specified for the purpose by the

Central Bank; and

“qualified person” means a person who possesses an academic or professional qualification and extensive knowledge and experience in the field of Banking, Finance, Accounting,

Auditing, Law, Risk Management or any other similar field.

Read on from s 62

Part X

Macroprudential Authority

Read on from Part X

Part XI

Financial System Oversight Committee

Read on from Part XI

Part XII

Information Exchange with Financial Sector Authorities

Read on from Part XII

Part XIII

Statistics and Information

Read on from Part XIII

Part XIV

Relationship with the Parliament, the Government and the Public

Read on from Part XIV

Part XV

Credit Operations

Read on from Part XV

Part XVI

Financial Provisions

Read on from Part XVI

Part XVII

Internal and External Audits

Read on from Part XVII

Part XVIII

General Provisions

Read on from Part XVIII

Part XIX

Repeals and Savings

Read on from Part XIX