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srilawsby aturio
As enacted
Contents

Part IV · Moneylenders

20. Licensed persons to carry out a moneylending business

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

(1)

A person shall not carry on a moneylending business except with a licence granted by the Authority.

(2)

A person who contravenes subsection (1) commits an offence under this Act.

(3)

Without prejudice to subsection (1), the provisions of subsection (1) shall not apply to the following institutions: -

(a)

the Government of Sri Lanka, a Provincial

Council or a local authority;

(b)

the Central Bank;

(c)

a licensed commercial bank or a licensed specialized bank within the meaning of the

Banking Act, No. 30 of 1988;

(d)

a licensed finance company within the meaning of the Finance Business Act, No. 42 of 2011;

(e)

any registered leasing establishment registered under the Finance Leasing Act, No. 56 of 2000;

(f)

a co-operative society registered under the

Co-operative Societies Law, No. 5 of 1972 and a cooperative society registered under a statute of a Provincial Council;

(g)

a samurdhi community based bank or a samurdhi community based banking society established under the Samurdhi Act, No. 1 of 2013;

(h)

an entity formed in terms of the Agrarian

Development Act, No. 46 of 2000;

(i)

any insurance company registered under the

Regulation of Insurance Industry Act, No. 43 of 2000;

(j)

any company lending money to related companies;

(k)

any company which lends money to its directors, officers or employees as a benefit accorded to such persons;

(l)

a foreign Government or any agency or institution acting on behalf of a foreign Government;

(m)

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

(n)

any stock broker registered under the Securities and Exchange Commission of Sri Lanka.

(4)

The provisions of subsection (1) shall not apply to –

(a)

a sum of money lent by a person to any other person only for a particular instance; and

(b)

a sum of money paid as subscription to a debt instrument which may include bonds, debentures or hybrid debt instrument.

Read on from s 21

Part V

Microfinance Business

Read on from Part V

Part VI

Regulation of Moneylenders and microfinance institutions

Read on from Part VI

Part VII

Examination of A Licencee

Read on from Part VII

Part VIII

Customer Protection

Read on from Part VIII

Part IX

Investigation of Offences

Read on from Part IX

Part X

Offences and Penalties

Read on from Part X

Part XI

Finance

Read on from Part XI

Part XII

General

Read on from Part XII

Part XIII

Transitional Provisions

Read on from Part XIII

Schedules