CREDIT INFORMATION BUREAU OF SRI LANKA ACT

Arrangement of Sections

1. Short title.

PART I

Establishment of the Credit Information Bureau of Sri Lanka

2. Establishment of the credit Information Bureau of Sri Lanka.

3. Bureau to be a body corporate.

4. Head Office, branch offices, and agents of the Bureau.

5. Board of Directors.

6. Functions of the Bureau.

7. Powers and duties of the Bureau.

8. Agents.

PART II

Finance

9. Capital of Bureau.

10. Shares in Bureau.

11. Liability of share-holders.

12. Borrowings by the Bureau.

13. Departments of Bureau.

14. Fund of Bureau.

15. Investment of money of the Bureau.

16. Reserves.

16A. Board to declare dividends.

17. Financial Year of the Bureau.

18. Audit.

19. Documents to be transmitted to the Minister.

PART III

General

20. Delegation of powers and duties and functions of the board.

21. Returns and information.

22. Right to refuse.

23. Declaration of Secrecy.

24. Protection for action taken under this Act or on the direction of the Board.

25. No writ to be issued against person or property of a Director of the Bureau.

25A. Protection for action taken under this Act by any lending institution.

26. Powers of Board to make rules.

27. Offences and penalties.

28. Sinhala text to prevail in case of inconsistency.

29. Interpretation.

SCHEDULE

18 of 1990,

8 of 1995.

AN ACT to provide for the establishment of the Credit Information Bureau of Sri Lanka for the collection of credit information relating to borrowers from lending institutions and for the provision of such information or request to the shareholders of the bureau and simultaneously to any borrower or prospective borrower to whom such information relates with a view to facilitating the distribution of credit to all sectors of the economy and to the informal sector, in particular; and for matters connected therewith or incidental thereto.

[Am by s 2 of Act 8 of 1995.]

[Date of Commencement: 8th May, 1990]

1. Short title.

This Act may be cited as the Credit Information Bureau of Sri Lanka Act.

PART I

Establishment of the Credit Information Bureau of Sri Lanka

2. Establishment of the Credit Information Bureau of Sri Lanka.

There shall be established a Bureau which shall be called the "Credit Information Bureau of Sri Lanka” (hereinafter referred to as the ”Bureau”) consisting of the persons who are shareholders thereof of the Bureau.

3. Bureau to be a body corporate.

The Bureau shall, by the name assigned to it by section 2, be a body corporate and shall have perpetual succession and a common seal and may sue and be sued in such name.

4. Head Office, branch offices, and agents of the Bureau.

The Head Office of the Bureau shall be located in Colombo. Such branch offices and agents of the Bureau as the Board of Directors may consider necessary may be established in places in Sri Lanka, other than in Colombo.

5. Board of Directors.

(1) The administration and management of the affairs of the Bureau shall be vested in the Board of Directors (hereinafter referred to as the "Board”) consisting of—

(i) a Deputy Governor of the Central Bank nominated by the Monetary Board who shall be the Chairman of the Board;

(ii) a senior officer of the Central Bank nominated by the Monetary Board:

(iii) a senior officer of the Bank of Ceylon nominated, by the Board of Directors of the Bank of Ceylon;

(iv) a senior officer of the People's Bank nominated by the Board of Directors of the People's Bank;

(v) two persons elected by the shareholding licensed commercial banks, other than the Bank of Ceylon, and the People's Bank;

(vi) a person elected by the shareholding finance companies;

(vii) a person nominated by the Minister in charge of the subject of Finance from the Boards of Directors of the National Development Bank, National Savings Bank, Development Finance Corporation of Ceylon and the State Mortgage and Investment Bank;

(viii) the person holding the office of the General Manager of the Bureau.

(2) The provisions of the Schedule to this Act shall have effect in relation to the term of office of the Directors of the Bureau, and the remuneration payable to such Directors, meetings and the seal of the Bureau.

(3) The Board shall exercise, perform, and discharge all powers, duties and functions conferred or imposed on, or assigned to, the Bureau by this Act.

6. Functions of the Bureau.

The functions of the Bureau shall be—

(a) to collect and collate, trade, credit and financial information on borrowers and prospective borrowers of lending institutions;

(b) to provide credit information, on request, to lending institutions who are shareholders of the Bureau and simultaneously to borrowers and prospective borrowers to whom such information relate;

(c) to establish a credit rating system In Sri Lanka, to undertake credit rating and to sell such credit ratings to any foreign and local agencies, or to any person making a request for such ratings; and

(d) to undertake research projects for lending institutions who are shareholders of the Bureau,

with a view to facilitating the distribution of credit to all sectors of the economy and to the informal sector, in particular.

[S 6 subs by s 3 of Act 8 of 1995.]

7. Powers and duties of the Bureau.

In discharging its functions, the Bureau may exercise and perform all or any of the following powers and duties:-

(a) to maintain a data bank on borrowers from lending institutions;

[S 7(a) subs by s 4(1) of Act 8 of 1995.]

(b) to collect and collate trade, credit and financial information on borrowers or prospective borrowers of lending institutions;

[S 7(b) subs by s 4(1) of Act 8 of 1995.]

(c) to store the information so collected:

[S 7(c) subs by s 4(1) of Act 8 of 1995.]

(d) to furnish credit information on request—

(i) in confidence to shareholders of the Bureau;

(ii) by a shareholder of the Bureau, to a borrower or prospective borrower to whom such information relates, subject to such terms and conditions as may be determined by the Bureau,

and to prescribe the forms in which such information is to be furnished;

[S 7(d) subs by s 4(1) of Act 8 of 1995.]

(dd) to sell credit ratings on request to foreign or local agencies or to any person:

[S 7(dd) ins by s 4(2) of Act 8 of 1995.]

(e) to levy such fees as it may deem necessary for furnishing credit information;

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