Kane Apparels (Private) Limited vs People’s Bank – CA WRIT/253/2022-2023
In Kane Apparels (Private) Limited, Warnakulasooriya Nelson Nihal Benises Fernando, and Adambarage Kalyani Fernando v. People’s Bank (Chairman and CEO), Lankaputhra Development Bank, Regional Development Bank, and National Development Bank, the court considered whether a bank is permitted to account for foreign currency fluctuations when recovering amounts on U.S. dollar-denominated loans and whether a bank may lawfully recover costs and expenses incurred between the date of parate execution and the date of resale or receipt of state compensation. The primary holding affirmed that the application of foreign currency fluctuations at the prevailing rate is a normal commercial risk and permissible in the absence of a contractual exclusion. Additionally, it was determined that the recovery of
