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srilawsby aturio
As enacted
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Contents

Part II

198. Financial instruments

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

(1)

For the purposes of this Act, the term “financial instrument” –

(a)

means –

(i)

a debt claim or debt obligation;

(ii)

a derivative instrument;

(iii)

a foreign currency instrument; and

(iv)

any other instrument prescribed by regulations or, in the absence of regulations, treated as a financial instrument by generally accepted accounting principles; but

(b)

except to the extent as may be prescribed by regulations, excludes a membership interest in an entity.

(2)

For the purposes of this Act –

(a)

“debt claim” means a right to receive a payment under a debt obligation;

(b)

“debt obligation” means an obligation to make a payment to another person that is denominated in money, including accounts payable and the obligations arising under deposits, debentures, stocks, treasury bills, promissory notes, bills of exchange and bonds.

(3)

For the purposes of this Act, a person –

(a)

derives a financial gain when the person derives interest or gains with respect to a financial instrument; and

(b)

incurs a financial cost when the person incurs interest or losses with respect to a financial instrument.

(4)

For the purposes of this Act, a person –

(a)

derives a relevant financial gain when the person derives a financial gain with respect to a derivative or foreign currency instrument; and

(b)

incurs a relevant financial cost when the person incurs a financial cost with respect to a derivative or foreign currency instrument.

(5)

The Minister may by regulation prescribe -

(a)

the derivative instruments; and

(b)

the foreign currency instruments.

Read on from s 199

Schedules