Standard Credit Lanka Limited vs Harankaha Arachchige Menaka Jayasankha – SC CHC APPEAL NO. 72/2013-2023

In the case between Standard Credit Lanka Limited (formerly Ceylinco Investment and Realty Limited) and Harankaha Arachchige Menaka Jayasankha and Dewasinghe Hewage Kulawathi Minipura, the court addressed the issue of whether compound interest was recoverable under Section 192 of the Civil Procedure Code and in light of Section 5 of the Civil Law Ordinance, specifically for a housing loan transaction secured by a mortgage bond. The court determined that Sri Lankan law does not prohibit the recovery of compound interest, provided it complies with statutory constraints. It was held that the calculation of interest must observe the boundaries of the contractual rate, statutory caps, and proper computation periods as prescribed. Relief was tailored to grant recovery of the outstanding principa