CEYLON DEVELOPMENT LOANS

(1) The Monetary Board is hereby authorized to raise for the Government of Ceylon loans the total amount of which shall not exceed six hundred million rupees for expenditure on any work commenced before or on or after the date of commencement of this Act and connected with or incidental to the development of Ceylon.

(2) In addition to the sum specified in subsection (1), the Monetary Board is hereby authorized to raise by way of loan, for the Government of Ceylon, such further sums as may be necessary for the purposes of defraying the expenses incurred in raising loans under that subsection.

(a) by the issue of stock or securities in accordance with the provisions of the Registered Stock and Securities Ordinance ;

(b) by the issue of stock in accordance with the provisions of Part II of this Act;

(c) from the International Bank for Reconstruction and Development in accordance with the provisions of Part III of this Act.

(1) All moneys raised by way of loan under subsection (1) of section 2 may be expended on the work mentioned in that subsection, but no such expenditure shall be finally charged to such loan except upon a resolution in that behalf passed by the House of Representatives :

Provided, however, that where a loan authorized by
this Act is raised in accordance with the provisions of Part II or Part III of this Act for any purpose or purposes specified in any prospectus issued or any loan agreement entered into by or on behalf of the Government of Ceylon, the moneys raised by such loan shall not be expended on any purpose other than the purpose or all or any of the purposes specified in such prospectus or agreement, as the case may be.

(2) Where any sum of money has, before or on or after the date of commencement of this Act, been expended out of the Consolidated Fund of Ceylon on any such work as is mentioned in subsection (1) of section 2, that sum may, subject to the proviso to subsection (1) of this section and upon a resolution in that behalf being passed by the House of Representatives, be replaced out of the moneys raised by way of loan under subsection (1) of section 2, and upon such replacement such expenditure shall be charged to such loan.

(1) Regulations relating to Ceylon Government stock may be made by the Registrar under section 16 of the Colonial Stock Act, 1877, as extended by the Colonial Stock Act, 1948, of the United Kingdom or any Acts amending them or substituted therefor, and the regulations may include provision that Ceylon Government stock shall be transferable by instrument in writing in accordance with the regulations and in no other manner and that certificates of title relating to Ceylon Government stock may be issued.

(2) Regulations made by the Registrar shall not come into force until they have been submitted to and approved by the Government of Ceylon.

(1) The Government of Ceylon shall pay to each holder of any Ceylon Government stock the principal sum of his holding and the interest due thereon, on the dates and at the rates specified in the prospectus of the stock, and the premium, if any, payable on the redemption or conversion of his holding of such stock.

(2) The Minister of Finance shall from time to time authorize by warrant under his hand the withdrawal from the Consolidated Fund of Ceylon of sums sufficient to make the payments required by subsection (1) to be made by the Government of Ceylon and shall cause those sums to be transmitted to the Registrar in such time as will enable the Registrar to make those payments on the due dates.

(3) The principal of, the interest on, and any premium payable on the redemption or conversion of, Ceylon Government stock are hereby charged on the Consolidated Fund of Ceylon.

(1) In the half-year ending on the date specified in the prospectus as the date of the first half-yearly contribution to the sinking fund established for the redemption of any Ceylon Government stock and thereafter in each half-year ending on the date for the payment of the half-yearly interest on such stock, there shall be paid out of the Consolidated Fund of Ceylon the amount of the half-yearly contribution to such sinking fund calculated at the rate specified for such contributions in the prospectus of such stock.

(2) All contributions under subsection (1) are hereby charged on the Consolidated Fund of Ceylon.

(1) All sums required by section 13 to be paid as contributions to the sinking fund established for the redemption of any Ceylon Government stock shall be paid to the trustee or trustees of that fund so as to be in his or their hands on the due date, and any sum so paid may by such trustee or trustees be invested in such stock or in any other securities in which trustees are from time to time authorized to invest trust moneys under the law in England.

(2) The trustee or trustees of a sinking fund may in his or their discretion from time to time vary or transpose any investments made under this section for or into any other investments authorized by this section.

(3) The trustee or trustees may in his or their discretion cancel any Ceylon Government stock acquired for the sinking fund established for the redemption of that stock.

(1)

(2) In order to enable every payment under subsection (1) to be made out of the Ceylon Government Account in London the warrant of the Minister of Finance specifying the sum to be paid pursuant to that subsection shall be sufficient authority to the person having control of that account to cause the requisite money to be issued out of that account.

(3) All sums which are required by this section to be paid out of the Ceylon Government Account in London are hereby charged on the Consolidated Fund of Ceylon.

(1) The principal of, the interest on, and any premium payable on the redemption or conversion of, such Ceylon Government stock as is in the ownership of persons or corporations neither resident nor domiciled in Ceylon shall be paid without deduction for and free from all taxes, levies or duties now or hereafter imposed by or under any law of Ceylon, notwithstanding anything in such law to the contrary.

(2) For the purposes of subsection (1), the question whether a person or corporation is or is not resident in Ceylon shall be determined in accordance with the provisions of section 33 of the Income Tax Ordinance.

(a) enter into and sign, in the name and on behalf of the Government of Ceylon, a loan agreement with the International Bank, and

(b) do all such other acts as may be necessary for giving full effect to such loan agreement.

(1) All sums payable by the Government of Ceylon to the International Bank under a loan agreement between that Government and that bank and all sums payable by that Government under any bond or promissory note issued pursuant to such loan agreement and held either by that bank or by any other person shall be paid-

Provided, however, that the preceding provisions of this subsection shall not apply to any taxes, duties, fees or restrictions upon payments under any bond or promissory note to a holder thereof other than the International Bank when such bond or promissory note is beneficially owned by an individual or a corporation resident or domiciled in Ceylon.

(2) For the purposes of subsection (1), the question whether a person or corporation is or is not resident in Ceylon shall be determined in accordance with the provisions of section 33 of the Income Tax Ordinance.

(a) shall be deemed to be raised on the date when the loan agreement providing therefor becomes effective in accordance with its terms, and

(b) shall be deemed to be in such amount of rupees as is equivalent, at the rate of exchange in force on the aforesaid date, to the amount of the loan as expressed in the currency in which the loan is denominated for the purposes of the aforesaid loan agreement.