Nimalaratne Perera vs People’s Bank – sllr 2005 volume 2 page 067

In the case between Nimalaratne Perera (Plaintiff) and People’s Bank (Defendant), the court addressed the issue of whether the Bank is entitled to recover interest exceeding the principal sum lent, particularly in the context of statutory limits imposed by Section 5 of the Introduction of Law of England Ordinance on banking transactions. The findings established that the statutory limitations on recoverable interest under the Money Lending Ordinance and the Introduction of Law of England Ordinance do not apply to banking transactions, permitting banks to recover agreed interest on current accounts. This principle was reaffirmed through reliance on legal precedents such as Sinnathamby Cumaravely and another vs. Muftutamby Sittarapuvalpulle, Tennant vs. Union Bank of Canada, and National Ban