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2024-06-14 | Banking Act Order No. 02 of 2024

Banking (Off-Shore Banking Business) Order

The Central Bank of Sri Lanka issued Banking Order No. 02 of 2024 to eliminate the demarcation between domestic and off-shore banking units, thereby permitting licensed commercial banks to conduct off-shore banking business as a standard activity. Effective June 15, 2024, the Order revokes nine existing off-shore banking scheme orders and operating instructions listed in Schedule I. The statutory savings clause ensures that all pending offences, liabilities, proceedings, examinations, and investigations under the repealed instruments continue unaffected until their final conclusion.

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ffi L4 June2024 CENTRAL BAIIK OF SRI LAI\KA BANKING ACT ORDER No.02 of2024 BANKING (OFF-SrrORE BANKTNG BUSINESS) ORDER With the implementation of the Banking (Amendment) Act, No. 24 of 2024,the demarcation of the Domestic Banking Unit and Off-shore Banking Unit is eliminated, and off-shore banking business is identified as a permissible activity that a Licensed Commercial Bank (LCB) may carry out. Accordingly, with a view to facilitating the conduct of off-shore banking business, the following shall take effect.

  1. Revocations 1.1 The Banking (Off-shore Banking Business Scheme) Orders and such other instruments applicable to Off-shore Banking Units of Licensed Commercial Banks, as set out in Schedule I hereto, are hereby revoked, effective from the appointed date of the Banking (Amendment) Act, No. 24 of 2024, on15.06.2024. The revocation effected above shall not affect: (i) any offence committed or liability incurred under the Orders and other instruments referred to in schedule I hereto; (ii) any action or proceeding pending or incomplete on the date of revocation; or (iii) any examination, investigation or inquiry pending on the date of revocation and such action, proceeding, examination, investigation or inquiry shall be carried on and concluded as if the Orders and such other instruments referred to in Schedule I hereto, continue to be in force. r.2 ffr9-,^r---a-o i'-."----f o". rxuilffiffign" Chairman of the Governing Board and Governor of the Central Bank of Sri Lanka

Schedule I Revocation of Banking Orders and Operating Instructions

  1. Banking (Off-shore Banking Scheme) Order,2000 dated 07.04.2000.
  2. Operating Instructions EC1O4I2O}O (D) dated 07.04.2000 on Off-shore n-anking Business.
  3. Circular Reference No. 021171800/0005/01 dated 20.08.2008 on granting perrnission to licensed commercial banks to trade in the international sovereign bonds issued in 2007 by the Goven:ment of Sri Lanka.
  4. Banking Act, Order No. 01 of 2008 dated 12.09.2008 on Banking (Off-shore Banking Business Scheme) Order.
  5. Banking Act, Order No. 01 of 2009 dated 23.10.2009 on Banking (Off-shore Banking Business Scheme) Order.
  6. Banking Act, Order No. 01 of 2011 dated 27.10.2011 on Banking (Off-shore Banking Business Scheme) Order.
  7. Banking Act, Order No. 02 of 2011 dated 08.11.2011 on Banking (Off-shore Banking Business Scheme) Order.
  8. Banking Act, Order No. 0l of 2018 dated 14.03.2018 on Banking (Off-shore Banking Business Scheme) Order.
  9. Banking Act, Order No. 02 of 2018 dated 30.11.2018 on Banking (Off-shore Banking Business Scheme) Order.
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