National Enterprise Development Authority

(1) There shall be established an Authority which shall be called the National Enterprise Development Authority (hereinafter referred to as the “Authority” ).

(2) The Authority shall, by the name assigned to it by subsection (1), be a body corporate and have perpetual succession and a common seal and may sue and be sued in such name.

(1) The management of the affairs the Authority shall vest in a Board, appointed by the Minister which shall consist of the following : –

(2) The Minister shall appoint one of the members of the Board to be the Chairman.

(a) he is or becomes a member of Parliament or a Provincial Council or a local authority ;

(b) he is not or ceases to be a citizen of Sri Lanka ;

(c) he is under any law in force in Sri Lanka or in any other country found or declared to be of unsound mind ;

(d) he is serving or has served a sentence of imprisonment imposed by any Court in Sri Lanka or any other country ;

(e) he holds or enjoys any right or benefit under any contract made by or on behalf of the Authority ;

(f) he is a person having been declared as an insolvent or a bankrupt person under any law in Sri Lanka or any other country and is undischarged insolvent or bankrupt.

(1) An appointed member may resign his office by letter addressed to the Minister and such resignation shall be effective from the date on which it is accepted by the Minister.

(2) The Minister may for reasons assigned, remove an appointed member from office.

(3) Where a member of the Board dies, resigns or is removed from office the Minister shall, having regard to the provisions of section 3, appoint another member in his place.

(4) A member appointed under subsection (3) shall hold office for the unexpired period of the term of office of the member whom he succeeds.

(1) Subject to the provisions of subsections (1) and (2) of section 5, the term of office of an appointed member of the Board shall be three years unless he earlier vacates office by death, resignation or removal, and such member other than the member who is removed shall be eligible for reappointment.

(2) An appointed member who has been removed from office shall not be eligible for reappointment as a member of the Board or to serve the Authority in any other capacity.

(1) The Chairman of the Board shall, if present preside at every meeting of the Board. In the absence of the Chairman from any such meeting the members present shall elect one of the members present to preside at such meeting.

(2) The quorum for any meeting of the Board shall be four members.

(3) Subject to the preceding provisions of this section, the Board may regulate the procedure in regard to the meetings of the Board and the transaction of business at such meetings.

(1) The seal of the Authority shall be in the custody of such person as the Board may decide from time to time.

(2) The seal of the Authority may be altered in such manner as may be determined by the Board.

(3) The seal of the Authority shall not be affixed to any instrument or document except in the presence of the Chairman, and one other member of the Board both of whom shall sign the instrument or document in token of their presence :

Provided that where the Chairman is unable to be present at the time when the seal of the Authority is affixed to any instrument or document, any other member of the Board authorised in writing by the Chairman in that behalf, shall be competent to sign such instrument or document in accordance with the preceding provisions of this subsection.

(4) The Board shall maintain a register of the instruments and documents to which the seal of the Authority is affixed.

(1) The Minister may, by Order published in the Gazette declare as a “Special Economic Zone”, any area of land as shall be described in the aforesaid Order, situated in any part of Sri Lanka, as shall be identified by the Authority in consultation with the Cabinet of Ministers other than any area which has been declared as “a licensed Zone” or “an export processing Zone” in terms of the provisions of the Board of Investment of Sri Lanka Law, No. 4 of 1978.

(2) Where on a memorandum submitted by the Minister, the Cabinet of Ministers considers it necessary that a company be incorporated for the purpose of managing and developing an area declared as a Special Economic Zone under subsection (1), the Cabinet of Ministers may direct the Minister to submit in consultation with the Minister in charge of the subject of Finance, a Memorandum and Articles of Association to the Registrar of Companies and also direct such Registrar to register such company under the Companies Act, No. 17 of 1982.

(3) Notwithstanding the provisions of the Companies Act, No. 17 of 1982, the Registrar shall, on receipt of a direction under subsection (1)-

(4) The objects, powers and functions of the Company shall be as set out in the Schedule hereto.

(a) stimulate the growth, expansion and development of Sri Lanka’s economy by encouraging, promoting and facilitating small and medium enterprise development within Sri Lanka ;

(b) stimulate and encourage the establishment and operation outside Sri Lanka of enterprises designed with a view to internationalize domestic enterprises capable of penetrating foreign markets for the fulfillment of the objectives of this Act ;

(c) formulate policies, plans, promotional incentives appropriately designed and effectively support and promote trade and development in industry and agriculture ;

(d) empowerment of people of human capital development with technical skills as an integral component of enterprise development ;

(e) develop infrastructure facilities required to meet the development needs ;

(f) facilitate the access of entrepreneurs to finances required for enterprise development and operation ;

(g) establish a Technology Development Fund to promote research and development in connection with product development, technological enhancement and commercialization of patents ;and

(h) facilitate regional economic development.

(a) register and enter into agreements with any person, partnership or corporative society engaged in or proposing to engage in business which in the opinion of the Authority would achieve or assist in the achievement of the objects of the Authority ;

(b) to identify and encourage targeted entrepreneurs who have the potential to undertake regional industrial and business activities ;

(c) to acquire or lease land for industrial sites or township development for the purpose of the achievement of the objects of the Authority ;

(d) to provide funds and resources for the development of the Special Economic Zones ;

(e) to develop and manage sites, zones, premises, infrastructure facilities required for economic development ;

(f) to establish or invest in companies to facilitate the achievements of the objects of the Authority ;

(g) to declare Special Economic Zones in a manner hereinafter set out, and such Zones shall be growth centre for enterprise development ;

(h) to establish for Divisional Secretary’s Divisions technology development and service centers to facilitate small and medium enterprise development ;

(i) to prescribe the fee and mode of application of the joint venture partners to establish companies;

(j) to open and maintain an account or accounts with such bank or banks as it may think appropriate which shall be operated in accordance with the prevailing financial regulations of the Government, pertaining to financial transactions of public corporations ;

(k) to co-ordinate with any Government Department, Ministry, Local Authority, Provincial Council or International Organization in order to achieve enterprise development ;

(l) to carry out integrated planning and physical development within the Special Economic Zones with the concurrence of the relevant authorities ; and

(m) to do all such acts or things as are incidental to or consequential upon the exercise, discharge and performance of its powers, functions and duties under this Act.

(1) The Board shall have the power to enter into any agreement with any person or partnership including joint ventures, for the purpose of exercising, performing and discharging the powers, duties and functions of the Authority.

(2) Every such agreement shall be in writing and shall upon registration with the Authority, constitute a valid and binding contract between the Authority and such Government Department, Local Authority or other body.

(1) Where any land or any interest in any land within any designated area is required by the Authority for the implementation of any of the projects and the Minister by Order published in the Gazette approves of the proposed acquisition, that land or interest in land may accordingly be acquired under the Land Acquisition Act (Chapter 460) and be transferred to the Authority, as if such land or interest in land is required for a public purpose :

Provided however, that where any land or any interest in any land of an estate situated within the designated area is required by the Authority, the Minister shall consult the Minister in Charge of the subject of Plantation Infrastructure, prior to the publication of an Order under this section for the acquisition of such land or interest in such land.

(2) Where any land or any interest in any land within any designated area is to be acquired under the Land Acquisition Act (Chapter 460) for any purpose of the Authority and public notice of the intention to acquire that land or interest is published as required by that Act at any time, within a period of three years commencing from the date of publication of the Order under subsection (1), the following provisions shall apply for the purpose of determining the amount of compensation to be paid in respect of that land or interest, notwithstanding anything to the contrary in that Act-

(1) The Authority shall establish, maintain and operate a fund into which shall be paid-

(2) There shall be paid out of the fund all such sums as are required to defray any expenditure incurred by the Authority in the exercise, performance and discharge of its powers, duties and functions under this Act or under any other written law and all such sums as are required to be paid out of the fund.

(3) The Authority shall establish a Technology Development Fund. All sums of money allocated or received for the purpose of technology development shall be paid into such fund. The Authority shall identify areas of technology development for which money out of such fund shall be paid.

(1) The financial year of the Authority shall be the calendar year.

(2) The provisions of Article 154 of the Constitution shall apply to the audit of the accounts of the Authority.

(1) The Chairman of the Authority shall be the Director-General of the Authority.

(2) The Director-General shall, subject to the general or special directions and control of the Board, be charged with the direction of the affairs and transactions of the Authority, the exercise, discharge and performance of its powers, functions and duties, and the administration and control of the officers and servants of the Authority.

(3) The Director-General may, with the approval of the Authority, whenever he considers it necessary to do so, delegate to any officer or servant any power, function or duty conferred or imposed on, or assigned to him by this Act and such officer or servant shall exercise, discharge and perform such power, function or duty subject to the general or special directions of the Director-General.

(1) The Authority may appoint such officers and servants as it considers necessary for the efficient discharge of its functions.

(2) The officers and servants appointed under subsection (1), shall be remunerated in such manner and at such rates and shall be subject to such conditions of service as may be determined by the Authority with the approval of the Minister.

(3) At the request of the Authority any officer in the public service may, with the consent of the officer and the Secretary to the Ministry of the Minister in charge of the subject of Public Administration, be temporarily appointed to the Authority for such period as may be determined by the Authority with his consent, or be permanently appointed to such staff.

(4) Where any officer in the public service is temporarily appointed to the staff of the Authority, the provisions of subsection (2) of section 14 of the National Transport Commission Act, No. 37 of 1991, shall mutatis mutandis , apply to and in relation to him.

(5) Where any officer in the public service is permanently appointed to the staff of the Authority, the provisions of subsection (3) of section 14 of the National Transport Commission Act, No. 37 of 1991, shall mutatis mutandis, apply to and in relation to him.

(6) Where the Authority employs any person who has agreed to serve the Government for a specified period, any period of service to the Authority by that person shall be regarded as service to the Government for the purpose of discharging the obligations of such agreement.

(7) At the request of the Authority, any member of the Local Government Service or any other officer or servant of a Local Authority may, with the consent of such member, officer or servant and the Local Government Service Commission, or the respective Local Authority, as the case may be, be temporarily appointed to the staff of the Authority for such period as may be determined by the Authority with like consent or be permanently appointed to such staff on such terms and conditions including those relating to pension or provident fund rights as may be agreed upon by the Authority and the Local Government Service Commission or that Local Authority.

(8) Where any member of a Local Government Service or any officer or servant of any Local Authority is appointed temporarily under subsection (7) to the staff of the Authority, he shall be subject to the same disciplinary control as any other member of the staff of the Authority.

(1) At the request of the Authority any officer or servant of a public corporation may, with the consent of such officer or servant and the governing board of such corporation, be temporarily appointed to the staff of the Authority for such period as may be determined by the Authority with like consent or with like consent be permanently appointed to the staff of the Authority on such terms and conditions, including those relating to pension or provident fund rights, as may be agreed upon by the Authority and the governing board of such corporation.

(2) Where any person is appointed whether temporarily or permanently under subsection (1) to the staff of the Authority, he shall be subject to the same disciplinary control as any other member of the staff of the Authority.

(3) For the purpose of this section “governing board” in relation to a public corporation means the Board of Directors or other body in which the administration and management of that public corporation has been vested.

(1) The Minister may, give to the Authority in writing general or special directions as to the performance of the duties and the exercise of the powers of the Authority. It shall be the duty of the Authority to comply with such directions.

(2) The Minister may from time to time, in writing, direct the Authority to furnish to him in such form as he may require, returns, accounts and other information with respect to the property and activities of the Authority. It shall be the duty of the Authority to comply with such direction.

(1) Any expense incurred by the Authority in any suit or prosecution brought by or against the Authority before any court, shall be paid out of the fund of the Authority, and any costs paid to, or recovered by the Authority in any such suit or prosecution shall be credited to the fund of the Authority.

(2) Any expense incurred by any person in any suit or prosecution brought against him before any court in respect of any act which is done or is purported to be done by him under this Act or on the direction of the Authority shall if the court holds that such act is done in good faith, be paid out of the fund of the Authority, unless such expense is recovered by him in such suit or prosecution.

(1) The Minister may, in consultation with the Authority make regulations in respect of matters required by this Act to be prescribed or in respect of which regulations are authorized to be made.

(2) Every regulation made by the Minister shall be published in the Gazette and shall come into operation on the date of such publication or in such later date as may be specified in such regulation.

(3) Every regulation shall as soon as it is convenient after its publication in the Gazette be brought before Parliament for approval. Any regulation which is not so approved shall be deemed to be rescinded from the date of disapproval but without prejudice to anything previously done thereunder.

(4) Notification of the date on which any regulation is deemed to be rescinded shall be published in the Gazette.

(a) for the regulation of procedure and the transaction of business at its meetings ;

(b) providing for the custody and manner of affixing its seal.

(1) Upon the declaration of an area in terms of section 12, the Authority shall be vested with the powers necessary for the implementation of the provisions of the Urban Development Authority Law, No. 41 of 1978.

(2) Upon the declaration of an area in terms of section 12, it shall be lawful for the Minister notwithstanding anything to the contrary in the Urban Development Authority Law, No. 41 of 1978 to make regulations in consultation with the minister to whom the urban Development Authority has been assigned, in relation to the physical planning within any area so declared.