Regional Development Banks Act No. 6

Sri Lanka

(enacted in 1997)

Regional Development Banks Act No. 6 of 1997 enables the Monetary Board of the Central Bank of Sri Lanka to order the establishment of Development Banks for specified regions with a view to developing the economy of the region; and to regulate their name, location, object, powers, and administration. According to this law, the initial capital of Regional Development Banks (RDBs) will be mainly publicly funded, but the shares can be freely transferred to any person.

This law covers, among others, the following relevant issues:

  • Incorporation Order for establishment of a Development Bank for a specified region;
  • Principal place of business, branches and agencies of the Development Bank;
  • Object of the Development Bank;
  • Powers of the Development Bank;
  • Management and administration;
  • Authorized capital and contributions to the initial capital;
  • Borrowings from the government and foreign governments;
  • Reserve funds;
  • Payments of dividends;
  • Tax exemption;
  • Security on which loans may be granted by the Development Bank;
  • The Bank deemed to be an approved credit agency;
  • Bank to be “leading institution”, “bank”, and “licensed specialised bank”;
  • Conversion of demand deposits into saving or time deposits;
  • Vesting of business of Regional Rural Development Banks in a Bank;
  • Saving provision; and
  • Interpretation.

DISCLAIMER: This summary was created from the version of this act located at the website of the Commonwealth Legal Information Institute: