11.
| (1) Where a licence of a licensed commercial bank is cancelled, the Monetary Board shall direct the licensed commercial bank forthwith to suspend its business in Sri Lanka and, in the case of a licensed commercial bank incorporated or established within Sri Lanka, the business both within and outside Sri Lanka, and shall also direct the Director of Bank Supervision to take charge of its business and its books, records and assets and to take such steps as may be necessary to prevent the continuance of the business of banking by such bank. It shall be lawful for the Director of Bank Supervision to take such action as he may be deem necessary to comply with the directive of the Monetary Board. ' |
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| (2) Where the cancellation of a licence has been made in respect of a licensed commercial bank incorporated established within Sri Lanka by or under any written law for the time being in force, the Director of Bank Supervision shall forthwith make application to a court of competent jurisdiction to commence proceedings for the winding up of the business of such bank, and he shall be appointed liquidator for the purposes of winding up of tile bank in accordance with the provisions of Part VIII of this Act |
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| (3) Where cancellation of a licence has been made in respect of a licensed commercial bank incorporated outside Sri Lanka, the Director of Bank Supervision shall forthwith inform the head office of such bank that it should honour the obligations and liabilities incurred in the carrying on of the business of the branch established within Sri Lanka, and shall take such steps as may be necessary to enforce any such undertaking as may have been given in this regard in accordance with the provisions of subsection (2) of section 3. |
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| (4) The Monetary board may, in addition to the procedures laid down in subsections (1), (2) and (3) of this section, take such other steps in respect of the licensed commercial bank, as it may deem necessary by
| | (a) requiring such bank to forthwith take any action or to do any act or thing which the Board may consider necessary in relation to the business of such bank; | | |
| | (b) appointing a fit and proper person to advice such bank in regard to the proper conduct of the business of such bank ; | | |
| | (c) assuming control of and carrying on business of such bank, or by delegating the control so assumed by the Board, to another person in order to carry on the business of the bank ; | | |
| | (d) reorganizing such bank by increasing its capital, arranging for new shareholders and reconstituting its board of directors; and | | |
| | (e) making such arrangements as are necessary for the amalgamation of such bank with any other licensed commercial bank, that consents to such amalgamation. | | |
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Sri Lanka Consolidated Acts