INTERNATIONAL DEVELOPMENT ASSOCIATION AGREEMENT



INTERNATIONAL DEVELOPMENT ASSOCIATION AGREEMENT
AN ACT TO ENABLE CEYLON TO BECOME A MEMBER OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION.
Act Nos,
7 of 1961
[20th February
, 1961
]
Short title.

1. This Act may be cited as the International Development Association Agreement Act.

Authorization of signature of Articles of Agreement of the International Development Association.

2. The Minister in charge of the subject of Finance is hereby authorized by instrument under his hand to empower such person as may be named in the instrument, on behalf of the Government of Sri Lanka,-

(a) to sign the Articles of Agreement* (hereinafter referred to as ‘* the Articles”) of the International Development Association (hereinafter referred to as ” the Association “) which are set out in the Schedule to this Act, and(* Minister in charge of the subject of Finance has already exercised the power under section 2, and Articles of Agreement were signed in Washington D.C. on 27th June 1961.)

(b) to deposit with the International Bank for Reconstruction and Development (hereinafter referred to as ” the Bank “) an instrument stating that the Government has accepted the Articles without reservation in accordance with the law of Sri Lanka and has taken all steps to enable the Government to carry out all the obligations of the Government under the Articles, in order that Sri Lanka which is entitled to be an original member of the Association under Section 1 (a) of Article II of the Articles and Schedule A to the Articles, may accept membership in the Association.

Status, immunities and privileges accorded in Sri Lanka to the Association.

3. The provisions of Sections 2 to 9 of Article VIII of the Articles shall have the force of law in Sri Lanka, and accordingly the Association-

(a) shall have in Sri Lanka the status and capacity specified in Section 2 of the said Article VIII. and

(b) shall have in Sri Lanka the immunities and privileges specified in Sections 3 to 9 of the said Article VIII.

Issue of notes or other obligations to the Association.

4. The Minister in charge of the subject of Finance, if he thinks fit so to do, may, on of Finance, if he thinks fit so to do, may, on behalf of the Government, create and issue to the Association, in such form as he thinks fit, any such non-interest bearing and non-negotiable notes or similar obligations payable at par value on demand to the account of the Association as the Association may, under subsection (e) of Section 2 of Article II of the Articles, determine to accept in place of any part of the subscription paid in or payable by Sri Lanka under subsection (d) of Section 2 of Article II, and Section 2 of Article IV, of the Articles.

Payments out of the Consolidated Fund.

5. There shall be paid out of the Consolidated Fund-

(a) such sums as may be required to pay to the Association the initial subscription of Sri Lanka under Section 2 of Article II of the Articles;

(b) such sums as may, from time to time, become payable to the Association by Sri Lanka under the Articles; and

(c) such sums as may be required for the redemption of any notes or obligations created and issued to the Association under this Act.

Issue of Government notes or obligations to the Central Bank.

6.

(1) For the purpose of providing any sums required to be paid out of the Consolidated Fund under section 5, the Minister in charge of the subject of Finance is hereby authorized to raise loans, on behalf of the Government, by the creation and issue to the Central Bank of Ceylon, in such form as he thinks fit, of non-interest bearing and non-negotiable notes or obligations.

(2) Notwithstanding anything in the Monetary Law Act, the Central Bank of Ceylon is hereby authorized to accept and hold any notes or obligations created and issued in accordance with the provisions of subsection (1) of this section.

(3) There shall be paid out of the Consolidated Fund all sums required for the redemption of any notes or obligations created and issued to the Central Bank of Ceylon under subsection (1) of this section.

Receipts,

7. All sums received by or on behalf of the Government of Sri Lanka from the Association under the Articles shall be paid into the Consolidated Fund ; and the sums so received, in so far as they represent capital, shall, unless otherwise provided in that behalf by any written law, be applied from time to time as the Minister in charge of the subject of Finance may direct in the redemption of notes or other obligations issued to the Central Bank under this Act.

Orders for carrying the articles in a effect.

8. The Minister in charge of the subject of Finance may, by Order published in the Gazette, make such other provision as he may consider reasonably necessary for carrying into effect any of the provisions of the Articles, and every Order made under this section and so published shall be laid before Parliament and shall have the force of law unless disapproved within fourteen days.


Schedules