10. The following new section is hereby inserted immediately after section 108, and shall have effect as section 108a, of the principal enactment: -
| 108A.
| | (1) The Central Bank may, subject to such directions as may from time to time be made by the Monetary Board, guarantee loans, advances or other accommodation granted to small-scale enterprises by credit institutions operating in Sri Lanka. | | |
| | (2) Where the Central Bank has prior to the date of coming into operation of this section and acting as agent, or for the account, of the Government, guaranteed under section 108 any loans. advances or other accommodation granted by credit institutions to small-scale industrial enterprises, such guarantee shall, with effect from such date, be deemed to be a guarantee given by the Central Bank on its own account. | | |
| | (3) In this section "credit institution" means any banking institution as defined in subsection (1) of section 127 of this Act, and includes-
| | | (a) the Development Finance Corporation of Ceylon established under the Development Finance Corporation of Ceylon Act; and |
| (b) any such society registered under the Co-operative Societies Law and carrying on banking business of any kind as is approved for the purposes of this section by the Monetary Board.'. |
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Sri Lanka Consolidated Acts