66. Banking business

For the purposes of this Act, a person’s activities in conducting a banking business shall be treated as a business separate from any other activity of the person and the person’s income or loss from the business for a year of assessment shall be calculated separately.

Where a person conducting a banking business makes specific provision for a debt claim in accordance with the relevant directives made by the Central Bank of Sri Lanka, the Commissioner-General may specify the extent to which that provision shall be deductible, but a person shall not deduct such provision unless such directives are complied with.

In this section, “banking business” means the banking business of a financial institution.