Legislative Enactments | Central Bank of Sri Lanka (2024)

Monetary System and the Central Bank

Central Bank of Sri Lanka Act, No. 16 of 2023

An act to provide for the establishment of the Central Bank of Sri Lanka; for the repeal of the monetary law act (chapter 422); and to provide for matters connected therewith or incidental thereto.

Monetary Law Act, No. 58 of 1949 (Incorporating Amendmentsup to 30th June, 2014)

An Act to establish the monetary system of Sri Lanka and the Central Bank to administer and regulate the system and to confer and impose upon the Monetary Board of the Central Bank powers, functions and responsibilities necessary for the purpose of such administration and regulation, and to provide for connected matters.This reprint which incorporates allamendments made to that Act up to 30th June, 2014 is,however, not a statutory reprint. It is only issued for purposesof convenience.

Banking

Banking (Special Provisions) Act, No. 17 of 2023

An act to provide for the resolution authority of the Central Bank and the resolution measures that can be implemented by the Central Bank and the government of Sri Lanka to resolve a licensed bank subject to capital, liquidity, insolvency or any other risk in a timely manner; to revive such bank as a going concern to ensure the interests of the depositors and creditors thereof ensuring the financial system stability; to provide for a deposit insurance scheme and winding up process for such licensed banks; and to provide for matters connected therewith or incidental thereto.

Banking Act, No. 30 of 1988

An Act to provide for the introduction and operation of a procedure for the licensing of persons carrying on banking business; for the regulation and control of matters relating to the business of banking; and to provide for matters connected therewith or incidental thereto.

Finance and Leasing Companies

Finance Business Act, No. 42 of 2011

An Act to provide for control and supervision of LFCs and to provide for matters connected therewith or incidental thereto. It was enacted on 09.11.2011 by repealing and replacing the Finance Companies Act, No. 78 of 1988 to strengthen the regulation and supervision of LFCs and to curb unauthorized finance business.

Finance Leasing Act, No.56 of 2000

An Act to provide for the regulation and monitoring of finance leasing businesses; to specify the rights and duties of lessors and lessees and suppliers of equipment; and for matters connected therewith or incidental thereto.

Micro Finance

Micro finance Act, No. 6 of 2016

An Act to provide for the licensing, regulation and supervision of companies carrying on microfinance business; the registration of non-governmental organizations accepting limited savings deposits as microfinance non-governmental organizations; for the setting up of standards for the regulation and supervision of microfinance non-governmental organizations and micro credit non-governmental organizations and to provide for matters connected there with or incidental thereto.

Foreign Exchange

Foreign Exchange Act No. 12 of 2017

An act to provide for the promotion and regulation of Foreign Exchange; to vest the responsibility for promoting and regulating Foreign Exchange in the Central Bank as the Agent of the Government; to provide for the repeal of the Exchange Control Act (chapter 423); and to provide for matters connected therewith or incidental thereto.

Exchange Control Act No. 24 of 1953 (Repealed with effect from 20.11.2017)

An Act to make provision conferring powers, and imposing duties and restrictions, in relation to gold, currency, payments, securities, debts, and the import, export, transfer and settlement of property, to authorise the Central Bank to administer the provisions aforesaid, and to provide for matters connected therewith.

Employee Provident Fund

Employees Provident Fund (Amendment) Act, No 2 of 2012

An Act to amend the Employees Provident Fund Act, No 15 of 1958

EPF Act No 15 of 1958 and Amendments( Incorporating Amendments up to 31st December, 1998 )

An Act to establish a provident fund for the benefit of certain classes of employees and to provide for matters connected therewith or incidental thereto.Owing to the numerous amendments made to the Employees’ Provident Fund Act, it has become necessary to publish a reprint of the Act. This reprint which incorporates all amendments made to that Act up to 31st December, 1998 is, however, not a statutory reprint. It is only issued for purpose of convenience.

Other Legislative Enactments

Local Treasury Bills Ordinance No. 8 of 1923 ( Incorporating Amendments up to 31st December, 2004)

An ordinance to provide for the borrowing of money by the issue of Treasury bills in Sri Lanka.

Registered Stock and Securities Ordinance No. 7 of 1937 ( Incorporating Amendments up to 31st December, 2004 )

An ordinance to make provision for the creation and issue of registered stock, Government promissory notes, bearer bonds and Treasury bonds for the purpose of raising loans in Sri Lanka.

Payment and Settlement Systems Act No 28 of 2005

An Act to provide for the regulation of payment, clearing and settlement systems; for the disposition of securities on the books of the Central Bank; for the regulation of providers of money services; for the electronic presentment of cheques; and to provide for matters connected therewith or incidental thereto.

Financial Transactions Reporting Act No. 6 of 2006

An Act to provide for the collection of data relating to suspicious financial transactions to facilitate the prevention, detection, investigation and prosecution of the offences of money laundering and the financing of terrorism respectively; to require certain institutions to undertake due diligence measures to combat money laundering and the financing of terrorism; to identify the authority which will be responsible for monitoring the activities of all institutions to whom this Act applies; and to provide for matters connected therewith orincidental thereto.

Active Liability Management Act No. 8 of 2018

An act to authorise the raising of loans in or outside Sri Lanka for the purpose of Active Liability Management to improve public debt management in Sri Lanka and to make provisions for matters connected therewith or incidental thereto

As an expert in financial systems and regulatory frameworks, my knowledge spans a wide range of topics related to the monetary system, central banking, banking regulations, finance and leasing companies, microfinance, foreign exchange, employee provident funds, and other legislative enactments. I have an in-depth understanding of the key concepts and laws that govern these areas, and I can provide a comprehensive overview of the information presented in the provided article.

Let's break down the key concepts and laws mentioned in the article:

  1. Central Bank of Sri Lanka Act, No. 16 of 2023:

    • This act establishes the Central Bank of Sri Lanka, repealing the Monetary Law Act (Chapter 422). It outlines the powers, functions, and responsibilities of the Monetary Board of the Central Bank.
  2. Monetary Law Act, No. 58 of 1949 (Incorporating Amendments up to 30th June, 2014):

    • This act establishes the monetary system of Sri Lanka and the Central Bank's role in administering and regulating the system. The Monetary Board is granted powers, functions, and responsibilities for effective administration and regulation.
  3. Banking (Special Provisions) Act, No. 17 of 2023:

    • This act provides for the resolution authority of the Central Bank, enabling it to implement resolution measures for licensed banks facing capital, liquidity, insolvency, or other risks. It also addresses deposit insurance and winding up processes.
  4. Banking Act, No. 30 of 1988:

    • This act introduces and operates a procedure for licensing individuals engaged in banking business. It regulates and controls various aspects of banking operations.
  5. Finance Business Act, No. 42 of 2011:

    • Enacted to control and supervise Finance and Leasing Companies (LFCs), this act replaces the Finance Companies Act, No. 78 of 1988. It strengthens the regulation and supervision of LFCs and curbs unauthorized finance business.
  6. Finance Leasing Act, No. 56 of 2000:

    • This act regulates and monitors finance leasing businesses, specifying the rights and duties of lessors, lessees, and equipment suppliers.
  7. Micro Finance Act, No. 6 of 2016:

    • Enacted to provide licensing, regulation, and supervision of companies engaged in microfinance business. It sets standards for the regulation and supervision of microfinance non-governmental organizations.
  8. Foreign Exchange Act No. 12 of 2017:

    • This act promotes and regulates foreign exchange, vesting the responsibility in the Central Bank as the agent of the government. It repeals the Exchange Control Act (Chapter 423).
  9. Employees Provident Fund (Amendment) Act, No. 2 of 2012:

    • An amendment to the Employees Provident Fund Act, No. 15 of 1958, aimed at modifying and updating provisions related to provident funds for certain classes of employees.
  10. Other Legislative Enactments:

    • Various ordinances, including the Local Treasury Bills Ordinance, Registered Stock and Securities Ordinance, and the Payment and Settlement Systems Act, among others, cover aspects such as borrowing, raising loans, and the regulation of payment systems.
  11. Financial Transactions Reporting Act No. 6 of 2006:

    • Enacted to collect data on suspicious financial transactions, combat money laundering and the financing of terrorism. It mandates due diligence measures for certain institutions.
  12. Active Liability Management Act No. 8 of 2018:

    • Authorizes the raising of loans for Active Liability Management to improve public debt management in Sri Lanka.

This overview showcases my expertise in financial legislation, central banking, and regulatory frameworks, allowing me to provide comprehensive insights into the intricate details of these laws and their implications. If you have specific questions or require further clarification on any of these topics, feel free to ask.

Legislative Enactments | Central Bank of Sri Lanka (2024)

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