9. Replacement of section 46 of the principal enactment

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

Section 46 of the principal enactment is hereby repealed and the following section is substitute therefor: -

“Suspension, revocation or cancellation of a licence

46.

“Nature of business that may be conducted by a person issued with a licence to carry on offshore banking business

(1)

Any person to whom a licence has been issued to carry on offshore banking business under this Part may conduct any of the following businesses: -

(a)

accept savings, time and demand deposits from any non-resident in any designated foreign currency;

(b)

borrow any sum in a designated foreign currency from any non-resident;

(c)

extend accommodation to any non-resident in any designated foreign currency;

(d)

engage in any transaction in any designated foreign currency with any other offshore unit;

(e)

engage in any other transaction in any designated foreign currency with a non-resident;

(f)

engage in any other transaction in any designated foreign currency, as may be envisaged under this Act; or

(g)

engage in any other transaction in any designated foreign currency, authorised by the Commission with the concurrence of the Central Bank.

(2)

Without prejudice to the provisions of subsection (1), a person to whom a licence has been issued to carry on offshore banking business under this Part may accept savings, time and demand deposits from, or lend to any authorised person or resident in any designated foreign currency, subject to the prior written approval of the Central Bank:

Colombo Port City Economic Commission

Provided that in granting such approval, the Central Bank shall satisfy itself that the envisaged transaction shall not be detrimental-

(a)

to the objects of the Central Bank under the provisions of the Central

Bank of Sri Lanka Act, No. 16

of 2023 to achieve and maintain domestic price stability and securing the ﬁ nancial system stability; and

(b)

to effectively carry out the prudent and effective management of ofﬁ cial international reserves under the provisions of the Central Bank of Sri

Lanka Act, No, 16 of 2023:

Provided further that, the approval under this subsection may be granted to a speciﬁ c class or classes of residents or transactions and subject to such terms and conditions as the Central Bank may consider necessary.

(3)

Without prejudice to the other provisions of this section, a person to whom a licence has been issued to carry on offshore banking business under this Part may, subject to such terms and conditions as the Central Bank may consider necessary, borrow in any designated foreign currency from banks licensed under the

Banking Act.

(4)

Nothing contained in this section shall prevent a person to whom a licence has been issued to carry on offshore banking business under this Part from opening and maintaining a non-interest-bearing rupee account in any licensed commercial bank in Sri Lanka for the purposes of meeting expenditure relating to its operations, and credit to such account shall be through conversion of foreign currency remitted into Sri Lanka.”.

Read on from s 10