INTERNATIONAL DEVELOPMENT ASSOCIATION AGREEMENT

(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.

(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.

(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.

(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.