19. Amendment of section 66 of the principal enactment

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

Section 66 of the principal enactment is hereby amended as follows: -

(1)

in subsection (2) of that section, by the substitution for the words “are complied with.”, of the following:-

“are complied with:

Provided that, where the previously allowed specific provision for a debt claim as a deduction has been reversed, reduced or paid during the year in full or part, the amount so reversed, reduced or paid shall be included in calculating such person’s income.”;

(2)

by the repeal of subsection (3) of that section and the substitution therefor, of the following subsection: -

“(3) A person conducting a banking business shall, in addition to the records, accounts or any other document required to be prepared as referred to in any other provision of this Act, prepare and retain the records in respect of specific provision for a debt claim, in such form as may be specified by the Commissioner-General.”;

(3)

by the addition immediately after subsection (3) of that section, of the following new subsection: -

“(4) In this section-

(a)

“banking business” means the banking business of a financial institution;

(b)

“debt claim” does not include the right to receive a payment on deposits, debentures, stocks, treasury bills,

Act, No. 10 of 2021

promissory notes, bills of exchange and bonds;

(c)

“directives made by the Central Bank of Sri Lanka” means any directives issued to make specific provisions relating to bad and doubtful debts under subsection (1) of section 76J of the Banking Act, No. 30 of 1988 or under subsection (1) of section 12 of the Finance Business Act, No. 42 of 2011 or under subsection (1) of section 9 of the Finance Companies Act, No.

78 of 1988 by the Central Bank of Sri

Lanka and applicable to the relevant year of assessment, but excludes any directives issued in relation to the adaptation of Sri Lanka Accounting

Standards.”.

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