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srilawsby aturio
As enacted
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Part II · Payment, Clearing and Settlement Systems and Money Services

22. Powers of Central Bank

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

(1)

The Central Bank may perform all or any of the following functions in relation to a designated clearing and settlement system and its clearing house :—

(a)

the provision of a secured or unsecured guarantee of settlement by participants;

(b)

the making of liquidity loans to the clearing house and the central counter-party; and

(c)

acting as the central counter-party to the participants.

(2)

If the Central Bank is of the opinion that participation in a designated clearing and settlement system by a participant poses or is likely to pose, an unacceptable risk, to the financial system or an unacceptable risk to the Central Bank in guaranteeing settlement of that participant’s obligations, the

Central Bank may—

(a)

suspend participation of that participant; or

(b)

prohibit it from being a participant; or

(c)

may require it to comply with such conditions, with respect to its participation, as the Central Bank considers necessary.

Read on from s 23

Part III

Read on from Part III

Part IV

Miscellaneous Provisions

Read on from Part IV