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As enacted
Contents

Part II · Directions, Rules and Requirements on Finance Companies

23. Transfer of dormant deposits to a special account in the Central Bank

Official English translation. The Sinhala text prevails.

(1)

Where an owner of a deposit or a holder of a valid Power of Attorney of the owner in respect of such deposit:-

(a)

has not transacted with the finance company either by making a deposit or withdrawal; and

(b)

has not had any correspondence with the finance company, for a period not less than ten years, such deposit shall be considered to be a dormant deposit:

Provided, that in relation to a deposit owned by a person who has not attained the legal age of majority the aforesaid period of ten years in respect of such deposit shall commence only upon such person attaining the legal age of majority.

(2)

Any finance company holding any dormant deposit referred to in subsection (1), shall make a report to the Board stating the nature of the deposit in such manner and time as may be required by the Board.

ended or cancelled;

(3)

The Board may direct a finance company to take such action as it deems necessary in respect of dormant deposit reported by such finance company. Notwithstanding anything to the contrary in any other written law, all monies in such deposit shall, if the Board so directs, be transferred by the finance company to a special account in the Central

Bank and may be utilized by the Board for such purposes as may be determined by the Board.

(4)

Any dormant deposit included in the report of a finance company and which does not fall under subsection (3) shall be referred by the Board to the Minister who shall issue such instructions as he considers appropriate in the circumstances.

(5)

Within thirty days from the submission of the report required by subsection (2), the relevant finance company shall publish a notice in at least one Sinhala, Tamil and

English daily newspapers circulating in Sri Lanka stating the name of the owner and particulars with regard to such deposit and shall dispatch, by registered post a notice to the owner to his last known address containing particulars of such deposit, provided that the Board may exempt the finance company from the mailing of such notice upon the finance company showing reasonable cause therefor.

(6)

The Central Bank shall where any person furnishes proof to the satisfaction of the Board, that any monies lying to his credit in his name with any finance company or in the name of a person from whom he derives title have been transferred to a special account in the Central Bank under subsection (3) subject to such terms, conditions or restrictions as may be imposed in respect of such monies, by or under any written law, repay to such person such monies, either with interest payable on such monies up to the date of repayment at such rate as the Board may, from time to time determine or if the Board so determines without such interest.

Part III

Examinations and Supervisory Actions on Finance Companies

Part IV

Financial Statements and Audit of Finance Companies

Part V

Regulatory and Resolution Actions on Finance Companies

Part VI

Insurance of Deposits

Part VII

Action Against Persons Carrying on Finance Business or Accepting Deposits Without Authority

Part VIII

Offences and Penalties

Part IX

General