2. Sections 4 and 5 of the People's Bank Act, No. 29 of 1961 (hereinafter referred to as the" principal enactment ") of are hereby repealed and the following section substituted therefore ; -
| 4. The purposes of the Bank shall be
| | (1) to develop and assist
| | | (a) the Co-operative Movement of Sri Lanka; |
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| | (2) to carryon the business of a
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| 5.
| | (1) In carrying out its purposes, the Bank may exercise, perform and do all or any of the following powers, acts and things, subject however to the restrictions, qualifications and limitations set out in subsection (3) and (4) of this section:
| | | (a) to establish, carry on, develop and extend in Sri Lanka and elsewhere the business of banking within all its branches and departments; |
| (b) to grant short-term, medium-term and long-term loans, overdrafts, advance. and other accommodations; |
| (d) to manage property and transact any kind of agency business which is normally transacted by bankers ; |
| (e) to borrow or raise money in such manner as the Bank shall think fit, and to secure the repayment of any money borrowed, raised or owing by mortgage, charge or lien upon the whole or any part of the bank's property or assets whether present or future including its uncalled capital, and also by a similar mortgage, charge or lien to secure and guarantee the performance by the bank of any obligation or liability it may undertake; |
| (f) to lend and advance money, securities and property or give credit to such persons, firms or companies and on such terms as may seem expedient and either with or without security, and if with security, upon such security and with such conditions ; as may from time to time be deemed to be advisable; |
| (g) to buy, sell, invest, underwrite, deal in and dispose of stocks, shares, debentures, mortgages, bonds, or securities issued or guaranteed by the Government of Sri Lanka or by any company or corporation registered or having its principal place of business in Sri Lanka: |
| (h) to purchase, take on lease or in exchange, hire, or otherwise acquire. any immovable or movable property and any rights or privileges; |
| (i) to mortgage, pledge, sell, give on lease or otherwise dispose of any immovable or movable property; |
| (j) to enter into any arrangement for sharing profits, union of interest, co-operation, joint adventure, reciprocal concession or otherwise with any person or company carrying on or engaged in any business or transaction which the Bank is authorized to carryon or engage in ; |
| (k) to undertake and execute any trust. the undertaking whereof may seem desirable, and also to undertake the office of executor, administrator, receiver, treasurer, or registrar, and to keep for any company, Government, authority or body, any register relating to any stocks, funds, shares or securities, or to undertake any duties in relation to the registration of transfers, the issue of certificates, or otherwise; |
| (l) to establish and support or aid in the establishment and support of associations, institutions, trusts, provident. funds, schemes for the providing of pensions and of guarantee and other funds and conveniences calculated to benefit employees or ex-employees of the Bank or the dependents,. heirs of such persons and to grant pensions and allowances, and to make payments towards insurance, and to subscribe or guarantee money for charitable or benevolent objects or for any exhibition or for any public general or useful object; |
| (m) to construct buildings, on any land belonging to or taken on lease by the bank, and to improve, manage. develop, exchange, lease, mortgage, dispose of, sell, turn to account or otherwise deal with all or any part of the property and rights of the bank ; |
| (n) to do all or any of the above things in Sri Lanka or outside Sri Lanka as principals, agents, contractors", trustees or otherwise and by or through trustees, agents or otherwise either by itself or in conjunction with others; |
| (o) to take or agree to take all such steps and proceedings as may seem expedient for the purpose of upholding and supporting the credit of the bank, and to obtain and justify public confidence and to avert or minimize financial disturbances which might affect the bank; |
| (p) to facilitate the registration or recognition of such Bank in any country outside Sri Lanka; |
| (q) to give any guarantee or indemnity and to enter into any arrangements with any Government or any Inca! authority in order to obtain any rights, concessions and privileges which are necessary for the exercise of its powers by the Bank; |
| (r) to form any company for carrying on any business the Bank is permitted to engage in, or for assisting or developing any business, or for enhancing the value of any property of the Bank, and to acquire and, undertake the business of, purchase any interest in, or acquire or hold shares of stock in, any company having objects similar to those for which the bank is authorized to. form any company; |
| (s) to employ such officers and servant. as may be necessary for carrying out the work of the Bank; |
| (t) to make rules in respect of the conditions of service and for the disciplinary control of the officers and servants of the Bank; |
| (u) to enter into contracts; |
| (v) to carryon the business of a pawnbroker subject to such conditions as may be prescribed; |
| (w) to provide technical assistance to any person to whom the Bank. grants any loan, overdraft, advance or other accommodation and to undertake or sponsor the training of persons in assessing the value of land and the creditworthiness of borrowers, in assaying gold, in banking and in finance; |
| (x) to guarantee loans raised or to be raised by industrial, and agricultural enterprises from approved credit institutions; |
| (y) to acquire and undertake the whole or any part of the banking and discount business of any person or company carrying on business which the Bank is authorized to carryon: |
| (z) to sell, dispose of the entire undertaking of the Bank or any part thereof, for such consideration as the Bank may think fit, and in particular for shares, debentures or securities of any other bank or to amalgamate the Bank's business with that of any other Bank : |
| (aa) to engage in hire-purchase business receive discounts, commissions and other remunerations; and |
| (bb) to do all things incidental or conducive to achieve all or any of its objects, or necessary or for the exercise of its powers. |
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| | (2) The provisions of subsection (1) shall not, except where the context expressly so requires, be in any way limited or restricted by reference to, or inference from the provisions contained in any other paragraph or any power therein specified, and the powers thereby conferred shall not be deemed merely subsidiary or auxiliary to the powers mentioned in subsection (1) but the bank shall, except when the context expressly requires otherwise, have full powers to exercise all or any of the powers conferred by any paragraph of subsection (1) within Sri Lanka or in any country outside Sri Lanka. | | |
| | (3) The funds of the Bank shall not be carried on subject to the following restrictions and qualifications:
| | | (a) the funds of the Bank shall not be expended in the purchase of or dealing in its own shares, nor shall such funds be lent upon the security of its own shares. |
| (b) no loan, overdraft, advance or other accommodation shall be granted by the Bank on the guarantee of an employee of the Bank to any person except to another employee of the Bank. |
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| | (4) All the powers contained in subsections (1) and (2) shall be read and construed subject to the restrictions and qualifications set out in subsection (3), and in case of conflict or inconsistency the provisions of subsection (3) of this section shall prevail. | | |
| | (5) The Pawnbrokers Ordinance (Chapter 90) shall not apply to the Bank when the Bank carries on the business of a pawnbroker. ". | | |
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Sri Lanka Consolidated Acts