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As enacted
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Contents

Part XV · Credit Operations

87. Credit operations with credit institutions

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

(1)

The Central Bank may, as the agent of the

Government-

(a)

disburse and recover any loan or advance;

(b)

issue guarantees, pay indemnity payments, recover any post claim recoveries and write off any unrecoverable balance; or

(c)

disburse grants and interest subsidy, out of the funds of the Government with a view to implementing refinance loan schemes and interest subsidy loan schemes under such terms and conditions as may be determined by the Government.

(2)

Any loan or advance granted to such institution shall be made against a promissory note or such other security as may be determined by the Government subject to the following conditions:-

(a)

that the loan or advance is repayable within such period not exceeding fifteen years as may be determined by the Government;

(b)

that the repayment to the Central Bank of the loan or advance is secured by the assignment to the

Central Bank, by way of pledge, of debts owed to such institution by its borrowers in respect of such purpose; and

(c)

such other conditions including the rate of interest on such loan or advance, as determined by the

Government.

(3)

The Central Bank may, in consultation with the

Minister, prescribe the terms and conditions subject to which loans or advances will be made available to credit institutions out of the funds provided by the Government, for the purposes for which their loans in general are destined, or relating to any other matters affecting or connected with the credit policy of such institutions.

(4)

An assignment of debts to the Central Bank under this

Part of this Act shall be effected by an instrument which shall be in such form as may be determined by the Governing

Board.

(5)

The Central Bank shall, on the execution of an assignment, have a first charge on the debts so assigned.

(6)

The provisions of this Part of this Act shall have effect notwithstanding anything to the contrary in any other provision of this Act.

Read on from s 88

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