Recovery of Loans by Banks (Special Provisions) (Amendment)

Recovery of Loans by Banks (Special Provisions) (Amendment) Act, No. 26 of 2024, was certified on May 8, 2024, by the Parliament of the Democratic Socialist Republic of Sri Lanka. This act amends the Recovery of Loans by Banks (Special Provisions) Act, No. 4 of 1990.

Key Amendments:

  1. Temporary Suspension of Property Auction:
    • A new section (4A) has been added immediately after section 4 of the original act.
    • This section stipulates that the Board shall not authorize any person to sell by public auction any property mortgaged to the bank as security for any loan in default.
    • This suspension is effective from the commencement date of this section until December 15, 2024.
  2. Precedence of Sinhala Text:
    • In case of any inconsistency between the Sinhala and Tamil texts of this act, the Sinhala text shall prevail.

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