Local Authorities (Commercial and industrial enterprises)

Local Authorities (Commercial and industrial enterprises)

AN ACT TO MAKE PROVISION FOR LOCAL AUTHORITIES TO ENGAGE IN COMMERCIAL , AND Industrial ENTERPRISES AND FOR MATTERS CONNECTED THEREWITH OR INCIDENTAL THERETO

BE it enacted by the Parliament of the Democratic Socialist Sri Lanka as follows:”

[18^th March
, 1983 ]

Short title.

1. This Act may be cited as the local Authorities (Com- Industrial Enterprises) Act, No. 13 of 1983.

Amendment of section 40 of Chapter 252.

2. Section 40 of the Municipal Councils Ordinance is hereby amended in subsection (1) of that section, by the insertion, immediately after paragraph (u) of that sub-section of the following new paragraph:-

” (uu) with the prior approval of the Minister”

(i)to engage in commerce and industrial enterprises for the manufacture production of such machinery, equipment materials and goods as may be required for the public services or the public utility services, as the case may be, which may be established and maintained by any Municipal Council or Urban Council under the Municipal Councils Ordinance and the Urban Councils Ordinance or under any other written law; and

(ii) to sell such machinery, equipment, articles, materials or goods to any other Municipal Council or Urban Council or to the public at such prices as may be determined by the Council and approved by the Minister.”.

Insertion of new section 40A in Chapter 252.

3. The following new section is hereby inserted immediately after Section 40 of the Municipal Councils Ordinance, and shall have effect as section 40A OF THAT Ordinance :-

Powers of the Minister in Respect of commercial and industrial enterprises.

40A

(1) The Minister may approve any commercial or industrial enterprise under (uu) of subsection (1) of section 40 having regard to”

(a) the economic viability of such enterprises.

(b) the benefits that may accrue to any Municipal Council and the public by the operation of such enterprise;

(2) No sums of money appropriated to a Municipal Council by Parliament under paragraph (f) of subsection (2) of section 185 and no grants allocated to a Municipal Council by the Minister under paragraph (g) of subsection (2) of section 185 shall be utilized by such Council for the purposes of establishing or maintaining any commercial or industrial enterprise.

(3)Where the Minister is of opinion that the continued operation of any commercial or industrial enterprise of any Municipal Council would be prejudicial to the interests of such Council by reason of mismanagement or that it is likely to involve financial loss to the Council he may, after consultation with the Council by proper published in the Gazette, terminate the operation of suck enterprises and direct the Council to take charge of all books records and assets of the enterprise and to take such measures as may be necessary to give effect to such Order.

(4) The Minister may, from time to time, Municipal Council engaged in any commercial or industrial enterprise general or special directions as to the carrying on or transaction of its business and such directions shall be carried out by the Council.

(5) The Minister may, from time to time, direct the Council in writing to furnish him in such form as he may require, returns, accounts and other information with respect to the business of such, enterprise, and the Council shall carry out every such direction.”.

Amendment of section 36 of Chapter 255.

4 Section 36 of the Urban Councils Ordinance is hereby amended by the insertion, immediately after paragraph (i) of that section, of the following new paragraph:”

” (ii) with the prior approval of the Minister”

(i) to engage, in commercial and industrial enterprises for the manufacture and production of such machinery, equipment, articles, materials and goods, as may be required for the public services or the public utility services, as the case may be, which may be established and maintained by any Municipal Council or Urban Council under the Municipal Councils Ordinance and the Urban Councils Ordinance respectively, or under any other written law; and

(ii) to sell such machinery, equipment, articles, materials or goods to any other Urban Council or Municipal Council or to the public at such prices as may be determined by the Council, and approved by the Ministers.

Insertion of new section 36A and in chapter 255.

5. The following new section is hereby inserted immediately after section 36 of the Urban Councils Ordinance, shall have effect as section 36A of that Ordinance:”

“Powers of the Minister in respect of commercial and industrial enterprises.

36A.

(1) “The Minister may approve any commercial or industrial enterprise under paragraph (ii) of section 36 having regard

(a) the economic viability of such enterprise;

(b) the benefits that may accrue to any Urban Council and the public by the operation of such enterprise ;

(2) No sums of money appropriated to an Urban Council by Parliament under paragraph (h) of subsection (2) of section 158 and no grants allocated to an Urban Council to the Minister under paragraph (c) of subsection (2) of section 158 shall be utilized by such Council for the purposes of establishing or maintaining any commercial or industrial enterprise.

(3) Where the Minister is of opinion that the continued operation of any commercial or industrial enterprise of any Urban Council would be prejudicial to the interests of such Council by reason of mismanagement or that it is likely to involve financial loss to the Council, he may, after consultation with the Council, by Order published in the Gazette terminate the operation of such enterprise and direct the Council to take charge of all books, records and assets of the enterprise and to take such measures that may be necessary to give effect to such Order.

(4) The Minister or the Commissioner may, from time to time, give any Urban Council engaged in any commercial or industrial enterprise general or special directions as to the carrying on or transaction of its business and such directions shall be carried out by the Council.

(5) The Minister or the Commissioner may, from time to time, direct the Council in writing to furnish him in such form as returns, accounts and other with respect to the business of such enterprise, and the Council shall, carry out every such direction.”