20.
| (1) Every licensed commercial bank shall maintain a reserve fund and shall, out of the net profits after the payment of tax of each year, before any dividend is declared or any profits are transferred to the head office or elsewhere, transfer to such reserve fund-
| | (a) a sum equivalent to not less than five per centum of such profits until the amount of the said reserve fund is equal to fifty per centum of the paid-up or assigned capital of such bank, as the case may be; and | | |
| | (b) a further sum equivalent to not less than two per centum of such profits until the amount of the said reserve fund is equal to the paid-up or assigned capital of such bank as the case may be: | | |
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| (2) The reserve fund of any licensed commercial bank shall not be reduced nor impaired: |
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Sri Lanka Consolidated Acts