PARLIAMENT OF THE DEMOCRATIC
SOCIALIST REPUBLIC OF
SRI LANKA
RECOVERY OF LOANS BY BANKS
(SPECIAL PROVISIONS) (AMENDMENT)
ACT, No. 1 OF 2011
[Certified on 28th January, 2011]
Printed on the Order of Government
Published as a Supplement to Part II of the Gazette of the Democratic
Socialist Republic of Sri Lanka of January 28, 2011
PRINTEDAT THE DEPARTMENTOFGOVERNMENT PRINTING, SRILANKA
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Price : Rs. 2.00 Postage : Rs. 5.00
Recovery of Loans by Banks (Special Provisions) 1
(Amendment) Act, No. 1 of 2011
[ Certified on 28th January, 2011]
L.D.—O. 11/2010.
ANACT TO AMEND THE RECOVERY OF LOANS BY BANKS
(SPECIAL PROVISIONS) ACT, NO. 4 OF 1990
BE it enacted by the Parliament of the Democratic Socialist
Republic of Sri Lanka as follows :—
1. This Act may be cited as the Recovery of Loans by Short title.
Banks (Special Provisions) (Amendment) Act, No. 1 of 2011.
2. The following new section is hereby inserted Insertion of new
section 5A in the
immediately after section 5 of the Recovery of Loans by
Recovery of
Banks (Special Provisions) Act, No. 4 of 1990 (hereinafter Loans by Banks
referred to as the “principal enactment”) and shall have effect (Special
as section 5A of that enactment :— Provisions) Act,
No. 4 of 1990.
“Application 5A. (1) No action shall be initiated in terms
of sections 3, of section 3 of the principal enactment for the
4 and 5 in
recovery of any loan in respect of which default
relation to
loans is made, nor shall any steps be taken in terms
exceeding of section 4 or section 5 of the aforesaid Act,
rupees five where the amount of such loan is less than
million. rupees five million :
Provided however, at the time of default
when calculating the amount due and owing
to the Bank on the loan granted to such
defaulter, the interest accrued on such loan and
any penalty imposed thereon, shall not be
taken into consideration.
(2) The provisions of section 5A of this Act,
shall also apply in relation to any bank
established by an Incorporation Order made
under the provisions of any written law for the
time being in force, notwithstanding any
provisions relating to the recovery of loans by
any such bank.”.
2 Recovery of Loans by Banks (Special Provisions)
(Amendment) Act, No. 1 of 2011
Replacement of 3. Section 22 of the principal enactment is hereby
section 22 of the
repealed and the following section substituted therefor :—
principal
enactment.
“Interpretation. 22 “bank” means a licensed commercial
bank or a licensed specialised bank within the
meaning of the Banking Act, No. 30 of 1988
which is empowered to take possession of
movable or immovable property which has
been mortgaged to the bank as security for any
loan, overdraft, advance or other accomodation
and in respect of which default has been
made.”.
Sinhala text to 4. In the event of any inconsistency between the Sinhala
prevail in case and Tamil texts of this Act, the Sinhala text shall prevail.
of inconsistency.
Recovery of Loans by Banks (Special Provisions) 3
(Amendment) Act, No. 1 of 2011
Annual subscription of English Bills and Acts of the Parliament Rs. 885 (Local), Rs. 1,180
(Foreign), Payable to the SUPERINTENDENT, GOVERNMENT PUBLICATIONS BUREAU, DEPARTMENT OF
GOVERNMENT INFORMATION, NO. 163, KIRULAPONA MAWATHA, POLHENGODA, COLOMBO 05 before 15th
December each year in respect of the year following.
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