43. Interpretation

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

In this Act unless the context otherwise requires —

“close relation”, in relation to an individual, means the spouse, or dependant child of that individual ;

“Director” means the head of the department of the Central

Bank of Sri Lanka to which the subject of supervision of finance leasing companies under this Act, has been assigned by the Monetary Board ;

“equipment” means any tangible asset which has an economically useful life of more than one year and does not include land, any improvements made to land other than fixtures or immovable property attached to land which can be removed from the land without substantial destruction to such fixture or immovable property ;

“finance leasc” means an agreement between a lessor and a lessee —

(a)

for the possession and usc by the lessee for an initial period of not Iess than one year from the date of the agreement, of an equipment specified by the lessee and either provided by the lessoror a supplier selected by the lessee ;

(b)

for the payment by the lessee to the lessor for possession and use of such equipment of such sums to be calculated so as to take into account in particular the amortization of the whole or substantial part of the cost of the equipment ;

(c)

which, after the acceptance of the equipment by the lessee, is not terminable by the lessee during the initial period set out in paragraph (a) ; and

(da)

which, though not a hire purchase agreement within the meaning of the Consumer Credit

Act, No. 29 of 1982, may or may not provide for the extension of the initial period set out in paragraph (a) or for the purchase by the lessee of the cquipment after the expiration of the initial period set out in paragraph (a) or the period extended under this paragraph ;

“finance leasing business” means the business of investing money for the provision of equipment under a finance lease ;

“lessor” in relation to a finance lease, means the person who transfers the right to possession and use of a equipment under Icase to a lessec ;

“lessee”, in relation to a fiance lease, means a person who acquires a right to possession and use of an equipment under the lease ;

“Monetary Board” means the Monctary Board of the

Central Bank of Sri Lanka established under the

Monetary Law Act ;

“supplier” means a person who supplies an equipment for the purpose of a finance lease, but docs not include a lessee where the lessee supplies such equipment ;

and

“supply agreement”, means an agreement entered into by a lessor with a supplier for the supply of an equipment by the supplier under a finance lease.

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Read on from s 44