Multilateral Investment Guarantee Agency

Multilateral Investment Guarantee Agency

AN ACT TO ENABLE SRI LANKA TO FULFIL ITS OBLIGATIONS UNDER THE CONVENTION ESTABLISHING THE MULTILATERAL INVESTMENT GUARANTEE AGENCY

WHEREAS Sri Lanka became, on October 3, 1986, a signatory to the Convention establishing the Multilateral Investment Guarantee Agency:

AND WHEREAS it is necessary to make legal provision to enable Sri Lanka to fulfil its obligations under that Convention:

Now therefore be it enacted by the Parliament of the Democratic Socialist Republic of Sri Lanka as follows :

[17^th December
, 1988 ]

Short title and date of operation

1. This Act may be cited as the Multilateral Investment Guarantee Agency Act, No. 57 of 1988 and shall come into operation on such date as the Minister by Order published in the Gazette, certifies as the date on which the Convention establishing the Multilateral Investment Guarantee Agency (hereinafter referred to as “the Convention”), and the provisions of which are set out in the Schedule to this Act enters into force in respect of Sri Lanka.

Power to issue notes to Agency.

2. The Minister shall on behalf of the Government, create and issue to the Multilateral Investment Guarantee Agency (hereinafter referred to as “the Agency”) established by the Convention, such non-negotiable and non- interest bearing promissory notes and or similar obligations as may be necessary to meet Sri Lanka’s obligations to the Agency, under paragraph (i) of Article 7 of the Convention.

Payment out of the Consolidated Fund.

3. There shall be paid out of the Consolidated Fund of Sri Lanka-

(a) such sums as may from time to time, be required to pay to the Agency, the initial subscription payable by Sri Lanka under paragraphs (i) and (ii) of Article 7 of the Convention;

(b) such sums as may, from time to time, become payable to the Agency by Sri Lanka, under any other provisions of the Convention; and

(c) such sums as may be required for the redemption of any notes or obligations created or issued to the Agency under section 2 of this Act.

Issue of Government notes or obligations to the Central Bank of Sri Lanka,

(1) For tile purpose of providing any sums required to be paid out of the Consolidated Fund of Sri Lanka under section 3, the Minister in charge of the subject of Finance is hereby authorized to raise loans, on behalf of the Government of Sri Lanka, by the creation and issue to the Central Bank of Sri Lanka, 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 (Chapter 422) the Central Bank of Sri Lanka is hereby authorized to accept and hold any notes or obligations created and issued in accordance with the provisions of sub section (1) of this section.

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

Receipts.

5. All sums received by, or on behalf of, the Government of Sri Lanka from the Agency

(a) as a refund under Article 10 of the Convention ;

(b) on a distribution of net-income under Article 27 of the Convention ;

(d) under any other provision of the Convention, shall be credited to the Consolidated Fund of Sri Lanka.

Status. Immunity and privileges of Agency.

6. The provisions of Articles 1, 44, 45, 46, 47, 48 and 50 of the Convention shall have the force of Law in Sri Lanka and accordingly

(a) the Agency shall have in Sri Lanka, the status and capacity specified in the aforesaid Article 1; and

(b) the Agency and its officials shall, subject to the aforesaid Article 50, have in Sri Lanka, the immunities and privileges specified in the aforesaid Articles 44, 45, 46, 47 and 48.

Central Bank to be depository for Agency.

7. When designated as such by the Government of Sri Lanka under Article 37 of the Convention, the Central Bank of Sri Lanka shall be the depository of the Agency in Sri Lanka, for the purposes referred to in that Article.

Interpretation.

8. In this Act, ‘ Central Bank ‘ means the Central Bank of Sri Lanka established by section 5 of the Monetary Law,(Chapter 422).