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| FOREIGN LOANS |
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AN ACT TO MAKE PROVISION REGARDING FOREIGN LOANS TO THE GOVERNMENT OF SRI LANKA AND FOR THE GUARANTEE BY THE GOVERNMENT OF SRI LANKA OF FOREIGN LOANS TO PUBLIC CORPORATIONS AND PUBLIC ENTERPRISES.
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| Act Nos, |
| 29 of 1957 |
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| 1 of 1963 |
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| 23 of 1980 |
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| 33 of 1984 |
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[13th April
, 1957 ]
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Short title.
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1. This Act may be cited as the Foreign Loans Act.
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Person empowered to sign agreements, & c, relating to foreign loans to the Government of Sri Lanka and guarantees given by the Government of Sri Lanka.
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2. The President or any person specially authorized by him in that behalf may, in the name and on behalf of the Government of Sri Lanka, sign-
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(a) an agreement relating to a foreign loan to the Government of Sri Lanka;
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(b) a guarantee by the Government of Sri Lanka relating to a foreign loan to a public corporation or public enterprise; and
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(c) any contract, bond, promissory note or other document required by such agreement or guarantee to be executed by the Government of Sri Lanka.
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Sums payable by the Government of Sri Lanka under agreements and guarantees to be a charge on the Consolidated Fund.
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3. All sums payable by the Government of Sri Lanka-
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(a) under an agreement relating to a foreign loan to the Government of Sri Lanka;
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(b) in terms of a guarantee relating to a foreign loan to a public corporation or public enterprise ; and
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(c) under any contract, bond or promissory note executed pursuant to such agreement or guarantee, are hereby charged on the Consolidated Fund.
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Power of Minister of Finance to make provision to give effect to an agreement or guarantee relating to a foreign loan.
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4.
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(1) The Minister in charge of the subject of Finance may, by Order published in the Gazette, make such provision as may be necessary to give effect to an agreement relating to a foreign loan to the Government of Sri Lanka or to a guarantee given by the Government of Sri Lanka relating to a foreign loan to a public corporation or public enterprise.
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(2) Every Order made and published under subsection (1) shall have the force of law.
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(3) Every Order made and published under subsection (1) shall be presented in Parliament within one month of the making of such Order.
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Application of Part IV of the Bills Exchange Ordinance to promissory notes executed by the Government of Sri Lanka.
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4A. The provisions of Part IV of the Bills of Exchange Ordinance shall apply to any promissory note executed by the Government of Sri Lanka in pursuance of an agreement relating to a foreign loan.
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” foreign loan ” means a loan or any form or financial credit or accommodation in any currency granted to the Government of Sri Lanka, or to a public corporation, or public enterprise
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(a) by a foreign Government or the agency of a foreign Government; or
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(b) by any international organisation; or
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(c) by a person or body of persons outside Sri Lanka, whether corporate or unincorporate, as may be approved by the Government of Sri Lanka generally or in respect of a particular transaction; or as may be approved by the Minister where the Minister is of the opinion that having regard to the nature of the transaction, the identity of such person or body of persons, cannot be ascertained expeditiously, and includes”
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(i) any sum of money which the Government of Sri Lanka or the public corporation or public enterprise, as the case may be, undertakes to pay any such foreign Government, agency, organization, person or body of persons that discharges any liability of the Government of Sri Lanka, or the public corporation or public enterprise, as the case may be, in respect of any transaction between the Government of Sri Lanka, public corporation or public enterprise, as the case may be, and any person outside Sri Lanka; and
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(ii) any loan or any form of financial credit or accommodation in any currency other than the Sri Lanka rupee granted to the Government of Sri Lanka or to a public corporation or public enterprise by a person or body of persons within Sri Lanka whether corporate or unincorporate, as may be approved by the Government of Sri Lanka generally or in respect of a particular transaction, or as may be approved by the Minister where the Minister is of the opinion that having regard to the nature of the transaction the identity of such person or body of persons cannot be ascertained expeditiously.’.
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“public corporation” means any corporation, board or other body which was or is established by or under any written law other than the Companies Ordinance*, with funds or capital wholly or partly provided by the Government of Sri Lanka by way of grant, loan or otherwise;
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“public enterprise ” means any company which is registered under the Companies Ordinance* and in which the Government of Sri Lanka holds not less than fifty per centum of the paid up capital.
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(* Repealed and replaced by the Companies Act, No. 17 of 1982.)
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