Finance Business Act 2011 · As enacted · Part IX · General
73. Deposit
Official English translation. The Sinhala text prevails.
Official translationFrom Department of Government Printing, unchanged
For the purposes of this Act, “deposit” means a sum of money paid on terms under which it will be repaid, with or without interest or a premium, and either on demand or at a time or in circumstances agreed to by or on behalf of the person making the payment and the person receiving it, subject to subsections (2) and (3).
In any of the following instances a sum of money paid on terms specified in subsection (1) shall not be a deposit for the purposes of this Act:-
a sum of money paid by way of a loan or investment in a debt instrument including a hybrid debt instrument by –
the Central Bank;
a bank licensed under the Banking Act,
No. 30 of 1988, a finance company within the meaning of this Act and a person exempted from the licensing requirement of the said Acts;
a person specifically authorized to lend money under any written law;
the Government, a Provincial Council or a local authority;
any other source where repayment is guaranteed by the Government;
a foreign government;
the International Bank for Reconstruction and Development, the International
Development Association, the International
Finance Corporation, the Asian Development
Bank, or any other multilateral lending institution; and
any other institution that may be specified by the Board in this regard.
a sum of money paid by way of a loan or subscription to shares by one company to another at a time when the first mentioned company is a subsidiary of the other or both are subsidiaries of another company or the first mentioned company is the holding company of the other or the same individual is the majority shareholder controller of both of them;
a sum of money which is paid by a person who, at the time when it is paid, is a relative of the person receiving it or is a director of the person receiving it or is a relative of a director of the person receiving it:
Provided however, that a sum of money received, other than by way of borrowings or subscription to shares, by a finance company within the meaning of this Act shall amount to a deposit;
For the purpose of this paragraph, “a relative”
in relation to any individual means the spouse, the children, or the parent of such individuals;
a sum of money paid to a person authorised to carry on insurance business under the Regulation of
Insurance Industry Act, No. 43 of 2000, for the purpose of carrying on authorized insurance business;
subject to subsection (3), a sum of money paid as subscription to shares;
a sum of money subscribed to bonds or debentures secured by the mortgage of any asset of a company provided that the total value of such bonds or debentures shall not exceed the market value of such asset of the company;
a sum of money subscribed to hybrid debt or subordinated debt, provided that the underlying debt instrument is a security listed on a stock exchange licensed under the Securities and
Exchange Commission of Sri Lanka Act, No. 36 of 1987;
subject to subsection (3), a sum of money paid by way of security for the performance of a contract or by way of security in respect of loss which may result from the non-performance of a contract;
subject to subsection (3), a sum of money subscribed to hybrid debt or subordinated debt, the minimum maturity period of which is not less than sixty months;
subject to subsection (3), a sum of money paid to a person only on particular occasions on terms specified in subsection (1); and
a sum of money paid in a transaction, the nature of which may be as specified by the Board by notification in the Gazette.
The Board may determine whether a sum of money transacted as specified in paragraphs (e), (h), (i) and (j) of subsection (2), is a deposit for the purposes of this Act, having regard to the frequency of those occasions and to the characteristics thereof.