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The Pawnbrokers Ordinance: your rights when you pawn

What the law says about redeeming, selling and losing a pawned item, read from the Ordinance’s own text.

Read from the official page on 14 October 2026

In short

  • You have 12 months from the day of pawning to redeem, and you can still redeem until the item is actually sold (sections 18 and 19).
  • A pawned item may be sold only by public auction, after at least 14 days’ written notice to you and to the Divisional Secretary (sections 26 and 27).
  • If it sells for more than the loan, interest and tax, you are owed the difference: claim it within a year, or it goes to the kachcheri (section 28).
  • The interest a pawnbroker may charge is capped by a schedule to the Ordinance (section 17).
  • Keep the pawn ticket: you need its foil to redeem, and a declaration before a Justice of the Peace if you lose it.

The pawn ticket

Every pawn ticket is issued in two parts, a foil and a counterfoil. Nothing counts as pawned until you have signed the counterfoil, the pawnbroker has signed the foil and given it to you, and you have accepted it (section 16). To redeem you hand the foil back and sign it in the pawnbroker’s presence. Someone else can redeem for you with the foil endorsed with your signature. If you lose the foil, you can make a declaration before a Justice of the Peace (section 22). The pawnbroker must give you a receipt when you redeem (section 25).

The 12-month redemption period

Every pledge is redeemable within 12 months from the day of pawning, not counting that day (section 18). The period ending does not end your right: the pledge stays redeemable until it is sold (section 19). To redeem you pay the loan, the interest due and any business turnover tax (section 20).

Sale at auction

A pledge not redeemed within the period may be sold only by public auction, never privately (section 26). Before the sale the pawnbroker must give at least 14 days’ written notice of the date, time and place to the Divisional Secretary and to you, and notices go by registered post to the address in the pledge book (sections 26, 27 and 30). A pawnbroker may bid at the auction (section 31). Within two years of a sale, the holder of the ticket can inspect the sale entry in the pawnbroker’s book (section 32).

If it sells for more than you owe

When a pledge sells for more than the loan, the interest due on the sale date and any tax, the pawnbroker must tell you the sale price and the amount left to your credit after costs, pay it to the holder of the ticket if demanded within one year of the sale, and otherwise deposit it at the nearest kachcheri (section 28).

What the pawnbroker must do

  • Hold a licence from the Divisional Secretary, which expires every 31 July (section 3).
  • Take articles in pawn only between 8 am and 8 pm (section 11).
  • Display the name and a notice of particulars in Sinhala, Tamil and English (section 13).
  • Insure the business to the full value of articles pawned, and pay the value of a pledge destroyed by fire, less the loan, interest and tax (section 24).
  • Not charge interest above the schedule rates (section 17), and not buy a pledge except at a public auction (section 37).

Where the Ordinance applies

The Ordinance operates in the provinces, districts, towns and places listed in its First Schedule, and the Minister can extend it by Order published in the Gazette (section 2). It covers pawnbrokers, not bank gold loans, which are lent under a different arrangement. For how the two differ and what rates are charged, see gold loan and pawning rates.

A note

This page is general information, not legal advice. For your own case, speak to a lawyer or the office named above.

Frequently asked questions

How long do I have to redeem my pawned items?

Twelve months from the day of pawning, and the item stays redeemable until it is actually sold at auction.

Can a pawnbroker sell my item without telling me?

No. It can be sold only by public auction after at least 14 days’ written notice to you and to the Divisional Secretary, sent by registered post.

What if my item sells for more than the loan?

The pawnbroker must tell you the sale price and the surplus, pay you the surplus if you ask within one year, and deposit it at the nearest kachcheri if no one claims it.

What if I lose my pawn ticket?

You can make a declaration before a Justice of the Peace (the Ordinance’s form F) and then have the same rights as a ticket holder, signing the counterfoil to redeem.

Is this the same as a gold loan from a bank?

No. The Ordinance regulates licensed pawnbrokers. Bank and finance company gold loans work under their own loan terms.

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