Gamini Fonseka vs People’s Bank – CA 1252/99-2023

In the case between Gamini Fonseka (Plaintiff) and People’s Bank, Colombo 02, and Cyril Lokuruge (Defendants), the court addressed whether the disclosure of confidential bank information by a bank manager to the media constituted a breach of statutory duty under Section 77 of the Banking Act and whether such disclosure gave rise to a cause of action for defamation, including vicarious liability of the bank for its employee’s acts. The court held that although the publication was defamatory, the bank could not be held vicariously liable since the manager’s actions fell outside the scope of employment, thus allowing the appeal and setting aside the previous judgment against the bank. This decision reaffirmed the principle that vicarious liability in defamation requires acts within the course