REGISTERED STOCK AND SECURITIES

(1) Whenever by any enactment, whether enacted before or after the date on which this Ordinance comes into operation, authority has been or is hereafter given to raise any sum of money by way of loan for any purpose mentioned in that enactment, or whenever it is necessary to raise any sum of money for the purpose of repaying any loan raised by the Government under this Ordinance or any other enactment, the Minister in charge of the subject of Finance may from time to time raise such sum or any part thereof under the provisions of this Ordinance in any one or more of the following modes:

(2) Registered stock or securities issued under this Ordinance for the purpose of raising any specified sum of money shall be deemed to be stock or securities issued in respect of a separate loan notwithstanding that the sum of money so raised is part only of a sum of money authorized by any other enactment to be raised by way of a loan.

(1) The Minister in charge of the subject of Finance shall, in respect of each loan to be raised under this Ordinance, specify by Order published in the Gazette

(2) The date of redemption of any registered stock or securities shall not be later than sixty years from the date of issue of such stock or securities.

(3) Where the Minister in charge of the subject of Finance deems it expedient to reserve an option to redeem any registered stock or securities at any date earlier than the date of redemption specified for such stock or securities by the Order under subsection (1), he shall by that Order further specify the terms and conditions on which such stock or securities may be redeemed at any earlier date.

(1) Any application or bids for the purchase pf registered stock or securities may, having regards to the interest of the national economy, be restricted to primary dealers and designated non-dealer bidders.

(2) Without prejudice to anything contained in this Ordinance particularly the provisions of sections 21c, 21d, 21b, and 21F, the Central Bank shall regulate, supervise and monitor the primary dealers and the designated non-dealer bidders with respect to their transactions in Treasury Bonds issued in the form of written certificates.

(1) For the purposes of this Ordinance, the title of any stockholder to any registered stock shall not be deemed to be transferred to any other person except upon the execution of an instrument in writing signed by the stockholder and the transferee and upon the registration of that transferee as the stockholder in the manner hereinafter provided.

(2) Interest which has fallen due in respect of any registered stock but which has not been paid to the stockholder for the time being shall not be deemed to be payable to a transferee of that stock unless the instrument of transfer expressly provides for the payment of that interest to that transferee.

(1) Where two or more persons are registered as joint holders of any stock, it shall be lawful for the Registrar to pay any interest due thereon to the person whose name appears first in the register among those joint holders: Provided, however, that where one or more of the joint holders, including the person whose name appears first in the register, is dead or under any legal disability, it shall be lawful for the Registrar on proof to his satisfaction of such death or disability, to pay such interest to that person whose name appears first on the register among the surviving joint holders or among the Joint holders who are not under any such disability;

Provided, further, that if the first of such joint holders or, if that joint holder is dead or under any legal disability, then if the first of the surviving joint holders or the first of the joint holders who are not under legal disability requests the Registrar in writing to pay the interest due on such stock to any specified person, it shall be lawful for the Registrar to pay such interest to that person accordingly.

(2) Nothing herein contained shall affect the rights of joint holders of any registered stock inter se or any claim which the representative of a deceased person may have against the survivor or survivors under or in respect of any registered stock to which subsection (1) applies.

(1) No alteration shall be made in the register of stock except for the purpose of effecting or recording

(2) No alteration shall be made in the register except upon

(1) Every promissory note shall be signed by the Registrar for and on behalf of the Government of Sri Lanka and shall, when issued, bind the Government of Sri Lanka to pay the principal sum mentioned in that note and the interest thereon in accordance with the provisions of this Ordinance, at the rate and on the dates specified in the Order of the Minister in charge of the subject of Finance under section 4 or in pursuance of an option to redeem such notes reserved in that Order.

(2) Promissory notes shall be issued in such denominations as the Minister in charge of the subject of Finance may direct.

(3) The provisions of section 10 of the Money Lending Ordinance shall have no application to any promissory note issued under this Ordinance.

(a) no indorsement of a Government promissory note shall be valid unless made by the signature of the holder written on the back of the note in one of the spaces provided for that purpose;

(b) a person shall not, by reason only of his having indorsed a Government promissory note, be liable to pay any money due either as principal or as interest thereon.

(1) Notwithstanding anything in any law to the contrary

(2) Nothing herein contained shall affect any claim which any representatives of a deceased person may have against the survivor or survivors under or in respect of any promissory note to which subsection (1) applies.

(1) Every bearer bond shall be signed by the Registrar for and on behalf of the Government of Sri Lanka and shall, when issued, bind the Government of Sri Lanka to pay the principal sum mentioned in that bond and the interest thereon in accordance with the provisions of this Ordinance, at the rate and on the dates specified in the Order of the Minister in charge of the subject of Finance under section 4 or in pursuance of an option to redeem such bond reserved in that Order.

(2) Bearer bonds shall be issued in such denominations as the Minister in charge of the subject of Finance may direct.

(1) There shall be attached to every bearer bond coupons for the payment of interest which fall due thereunder:

Provided that the number of coupons attached to a bearer bond on the date of its issue to any person may cover a period shorter than that of the currency of the bond if, in the opinion of the Registrar, it is inconvenient or inexpedient to attach to that bond coupons sufficient in number to cover the entirety of the period of the currency of the bond.

(2) If the number of coupons attached to any bearer bond on the date of its issue to any person is insufficient to cover all payments of interest due on that bond after that date, the holder of the bond shall be entitled to a renewal thereof at the prescribed time and in the prescribed manner and circumstances.

(1) Every Treasury Bond shall, on being issued, bind the government to pay the principal sum for which the Bond is issued and the interest thereon in accordance with the provisions of this Ordinance, at the rate and on the dates specified in the Order made in terms of section 4 or in pursuance of an option reserved in such Order to redeem such Bond :

Provided that, if the day on which such payment falls due is a day on which the Central Bank is not open for business, payment shall be made in accordance with the procedure as may be prescribed in that behalf.

(2) Notwithstanding any other provisions of this Ordinance, treasury bonds may be issued either as bonds in the form of written certificates or as Scripless Treasury Bonds.

(1) Every treasury bond issued in the form of a written certificates shall be signed by the Registrar for and on behalf of the Government by endorsement and delivery of the bond.

(2) Notwithstanding anything to the contrary in any written law-

(1) Notwithstanding any other provisions of this Ordinance the Minister in charge of the subject of Finance, may by an order published in the Gazette direct the issue of scripless treasury bonds. Such scripless treasury bonds shall be issued and maintained in accordance with the provisions of this section and sections 21D, 21E, and 21F of this Ordinance.

(2) The Central Bank shall have the authority to take any action necessary for the issue and trading of scripless treasury bonds in accordance with the provisions of this Ordinance. Without limiting the generality of the foregoing, the Central Bank shall the authority to undertake and carry out the following:-

(3) The Central Bank may be the extent not otherwise provided for in sections 21c, 21d, 21e, and 21f issue directions to direct participants or any category thereof, to provide for the followings:-

(4) The Central Bank may by Notification published in the Gazette and in two local newspapers in the Sinhala, Tamil and English languages, require the holder of Treasury Bonds issued in the form of written certificates of a series to be specified in such Notification, if they so desire to surrender such bonds for conversion into Scripless Treasury Bonds in accordance with such procedure as may be prescribed. Such Treasury Bonds shall upon conversion into Scripless Treasury Bonds be deemed to be Scripless Treasury Bonds issued under this Ordinance.

(5) Nothing contained in subsection (4) shall be construed as affecting or discharging the liability of the Government under this Ordinance to make payment on a Treasury Bond issued in the form of a written certificate belonging to a series specified in a Notification published under that subsection which has not been converted into a Scripless Treasury Bond in terms of such subsection.

(1) The Central Bank may in writing appoint any primary dealer or other person to be a direct participant who shall be entitled to maintain accounts in respect of Scripless Treasury Bonds as specified in subsection (2).

(2) A direct participant shall maintain in a depository referred to in the Monetary Law Act, Securities Accounts to hold Scripless Treasury Bonds and other scripless securities to which such direct participant has title and to record the interests of such direct participant in scripless treasury bonds and other scripless securities in accordance with such rules and regulations made under the Monetary Law Act.

(3) The Central Bank shall pay to a direct participant the sum due as the principal, interest and redemption proceeds, if any, on Scripless Treasury Bonds in respect of which such direct participant is recorded as owner in accounts maintained by such direct participant under subsection (2), on the day the sum due as principal, interest, or redemption proceeds, if any, become payable.

(4) The Central Bank may inspect and take copies of any books, records or accounts maintained by a direct participant relating to or affecting any Scripless Treasury Bonds, held in its own account or, in the case of a dealer direct participant, with respect to its own account as well as those held in customers’ accounts. The direct participant or dealer direct participant and its officers, directors, employees, servants and agents shall furnish to the Central Bank, all such books, records, correspondence or any other documents as may be required by the Central Bank, and shall provide the Central Bank with all such assistance as it may require to perform the duties imposed on the Central Bank by this Ordinance in respect of Scripless Treasury Bonds. The provisions of this subsection shall apply to any books, records, accounts and correspondence maintained in an electronic form.

(5) In the event of the Government incurring any liability or making payment of any sum due as principal, interest or redemption proceeds with regard to Scripless Treasury Bonds, and where such liability arises or such payment is made in consequence, or by reason, of any default of a direct participant or a dealer direct participant, such participant shall be liable on demand by the Government, to indemnify the Government with respect to such liability or payment.

For the purpose of this subsection “default” includes-

(1) Writing any direct participant to be a dealer 21e (1) the Central Bank may appoint in direct participant.

(2) A dealer direct participant shall, in addition to maintaining the accounts required to be maintained under subsection (2) of section 2ID, maintain in a depository referred to in the Monetary Law Act, accounts in respect of each of its customers to hold Scripless Treasury Bonds and other scripless securities to which each such customer has title and to record interests of each such customer in Scripless Treasury Bonds and other scripless securities in accordance with such rules and regulations made under the Monetary Law Act.

(3) The Central Bank shall pay to a dealer direct participant, in addition to the payments referred to in subsection (3) of section 21 D, the sum due as principal, interest, and redemption proceeds, if any, on Scripless Treasury Bonds in respect of which a customer of such dealer direct participant is recorded as owner in accounts maintained by such dealer direct participant under subsection (2), on the day the sum due as principal interest or redemption proceeds if any, become payable.

(4) No person other than a dealer direct participant may transact in Scripless Treasury Bonds on behalf of any other person. Any person, other than a direct participant and the Central Bank desiring either to make a transfer or to take a transfer of Scripless Treasury Bonds, shall do so only through a dealer direct participant.

(5) A dealer direct participant shall maintain books and records to enable it to perform and discharge its duties and functions under this Ordinance and to discharge its obligations to its customers and shall comply with directions, if any, issued by the Central Bank for such purpose.

(6) Upon receipt by a dealer direct participant of any amount by way of payment from the Central Bank in terms of subsection (3) in respect of Scripless Treasury Bonds held in a customer account, the dealer direct participant shall pay such amount, within the time specified in any direction issued by the Central Bank, to the customer or to any other party entitled to such payment by law or in terms of a written agreement to which the dealer direct participant and the customer are party.

(7) If a dealer direct participant is unable for any reason to effect payment to a customer or to a party entitled to payment in terms of subsection (6), within the time specified in directions issued by the Central Bank, the dealer direct participant shall within such period as may be specified in such directions, transfer the sum remaining unpaid to a prescribed account of the Central Bank and shall provide the Central Bank with such information as may be required by the Central Bank with regard to the payment and the customer or other party, as the case may be.

(8) The sums of money transferred to a prescribed account of the Central Bank in terms of subsection (7) shall be paid to persons entitled thereto and any monies lying unclaimed shall be dealt with or disposed of, by the Central Bank in such manner as may be prescribed by regulations.

(9) A dealer direct participant shall except to the extent required for the proper conduct of its business and administration, maintain confidentiality in respect of accounts maintained for a customer and any matter connected therewith and shall not disclose to any person other than to the Central Bank, any information relating to an account of a customer unless authorized to do so in writing by the customer, or except where it is required to do so under any law or by an order of court.

(10) Subject to the provisions of any applicable written law, a dealer direct participant shall be wholly responsible and liable to customers in respect of all transfers taken or made by such customer through such dealer direct participant.

(1) Where a transfer of title to a Scripless Treasury Bond is made by a dealer direct participant from or into an account maintained for a customer under subsection (4) of section 21 E or an interest of any customer in a Scripless Treasury Bond is recorded or any amendment or variation is made in respect of any such interest in any Scripless Treasury Bond in such account, such dealer direct participant shall issue to such customer a confirmation in accordance with such directions as may from time to time be issued by the Central Bank.

(2) The provisions of subsection (1) shall not be construed as derogating from any obligation imposed under the Monetary Law Act on the provider of depository facilities for scripless securities, to issue statements or confirmations in respect of accounts maintained in such depository and in the event of any conflict or inconsistency between a statement or confirmation so issued by the depository and the statement or confirmation issued under subsection (1), the statement or confirmation issued by the depository shall prevail.

(3) The confirmation referred to in subsection (1) shall not be capable of being negotiated and shall be used solely as evidence of dealings between the dealer direct participant who issued it and the customer in respect of the Scripless Treasury Bond to which it relates.

(4) The Central Bank may permit any notification, confirmation, acknowledgment or receipt required under this section to be issued in a non-written form and to be transmitted or delivered by wire, telephone, satellite, cable or any other such electronic, magnetic or optical media, as may be specified by the Central Bank.

(5) An electronic record of a Scripless Treasury Bond, or any confirmation, notice, acknowledgment, receipt or other document or record issued or maintained for the purposes of this Ordinance in an electronic form shall not be denied legal effect, validity, or enforceability solely on the ground that such scripless treasury bond is maintained in an electronic form or that such confirmation, notice, acknowledgement receipt or other document or record is issued or maintained in electronic form and such confirmation, notice, acknowledgment, receipt or other document may be tendered in evidence in proceedings before any court or tribunal in accordance with Parts II and III of the Evidence (Special Provisions) Act, No. 14 of 1995 or any other law for the time being in force in relation to the tendering of computer evidence before any court or tribunal.

(1) The interest due on any registered stock or securities shall be payable on the dates specified by Order made under section 4.

(2) Where any amount has become payable on any date as interest due on any registered stock or securities, no interest on that amount shall, after that date, be paid or payable by the Government to any person in any circumstances.

(1) All moneys appropriated under section 27 as contributions to the sinking fund established for any loan shall be paid to the trustees, and may by them be invested

(2) The trustees may from time to time in their discretion vary any investment made under subsection (1) or may realize and reinvest any moneys invested under that subsection ; and the provisions of subsection (1) shall apply in like manner to any such variation or reinvestment.

(a) whether already received or accruing to the Fund and constituting the surplus during the period January 1, 1984 to December 31, 1984, after all disbursements in settlement of the deposits of any sinking fund to redeem maturing debt have been made out of the Fund, and

(b) accruing to the Fund on or after January 1, 1985,

(1) Notwithstanding the provisions contained in this Ordinance or any other law or the terms of any Order published under section 4 of this Ordinance, the Minister may, in the interests of the national economy, declare by Order published in the Gazette that with effect from the date of such declaration, no contribution shall be made to the sinking fund in respect of any loan raised or to be raised under this Ordinance.

(2) Where a declaration is made under subsection (1), provision shall be made in the Appropriation Act for the redemption of such maturing loan.”.

(a) he may declare any stock or securities issued in Sri Lanka under the provisions of this Ordinance or any other enactment to be convertible into registered stock or other securities to be issued under the provisions of this Ordinance ;

(b)he may authorize the creation and issue under this Ordinance of such an amount of registered stock or securities as may be necessary for the conversion of the stock or securities in respect of which a declaration has been made under paragraph (a);

(c) he may authorize the creation and issue under this Ordinance of such registered stock or securities as may be necessary for the purpose of paying any expenses incurred in the creation and issue of registered stock or securities under this section;

(d) he may declare that all privileges, exemptions and immunities attaching by virtue of any written law in force in Sri Lanka to any stock or securities shall attach to any new registered stock or securities issued under this Ordinance in conversion of such earlier stock or securities.

(1) When a security is alleged to have been lost, stolen or destroyed either wholly or in part, and a person claims to be the person to whom but for the loss, theft or destruction it would be payable, he may, on application to the Registrar and on producing proof to the satisfaction of the Registrar of the toss, theft or destruction and of the justice of the claim, obtain from the Registrar on payment of the prescribed fee, an order for

(2) An order shall not be made under subsection (1) until after the issue of the prescribed notification of the loss, theft or destruction.

(3) The loss of the security in respect of which an order is made under subsection (1) shall be published in the prescribed manner.

(4) If at any time before the Government becomes discharged under the provisions of this Ordinance from liability in respect of any security the whole of which is alleged to have been lost, stolen or destroyed, such security is found, any order passed in respect thereof under this section shall be cancelled.

(a) to issue a notice to the holder of any security directing him to apply for a renewal of that security; and

(b) to withhold payment of the interest or principal amount due in respect of that security until the application for renewal has been made and determined.

(1) Where there is a dispute as to the title to a promissory note in respect of which application for renewal has been made, the Registrar may

(2) The Registrar may for the purposes of any inquiry under this section exercise all or any of the powers of a commission under the Commissions of Inquiry Act.

(a) all stock and securities so given or taken in exchange shall have been issued in respect of the same loan; and

(b) the nominal value of the stock or securities given by the Registrar in exchange shall be the same as the nominal value of the stock or securities taken by him in exchange.

(a) on the application of a person claiming to be entitled to any stock or securities, and

(b) on being satisfied of the justice of the claim of such applicant, and

(c) on surrender of the stock certificate relating to such stock or of such securities receipted in the prescribed manner, and

(d) on payment of the prescribed fee, consolidate or subdivide such stock or securities and issue to the applicant one or more new stock certificates or securities as may be required.

(1) When a renewed promissory note has been issued under section 38 or section 40, or a new promissory note has been issued on an exchange under section 41 or upon a consolidation or subdivision under section 42, in favour of any person, the note so issued shall be deemed to constitute a new contract between the Government and such person and all persons deriving title thereafter through him.

(2) No such renewal, exchange, consolidation or subdivision shall affect the rights as against the Government of any other person to the security or securities so renewed, exchanged, consolidated or subdivided or to any stock so exchanged.

(a) in respect of any registered stock or security redeemed on or after the date on which payment of the principal amount becomes due, be discharged after the lapse of six years from that date;

(b) in respect of any security in place of which a duplicate is issued under section 37, be discharged after the lapse of six years from the date of the first notification under section 37 (3) published in respect of such security or from the date of the last payment of interest on such security, whichever date is the later ;

(c) in respect of a security for which a renewed security is issued under section 38 or section 40, or in respect of stock or securities in place of which new stock or securities are issued upon an exchange under section 41, or upon a consolidation or subdivision under section 42, be discharged after the lapse of six years from the date of the issue of the renewed security or of the new stock or securities, as the case may be,

(1) If within six months of the death of a person who was entitled to registered stock or to a promissory note the nominal or face value of which does not in the aggregate exceed five thousand rupees, probate of the will or letters of administration of the estate of such person is not produced to the Registrar, he may, after such inquiry as he may deem necessary, determine who is the person entitled to such stock or promissory note or to administer the estate of the deceased and may

(2) Upon the payment or renewal of any promissory note in accordance with subsection (1), the Government shall be discharged from all liability in respect of the note so paid or renewed; and any substitution of names made under that subsection shall, for the purposes of any claim against the Government, be deemed to have effected a valid transfer of the stock in respect of which it was made.

(3) Any creditor or claimant against the estate of the deceased may recover his debt or claim out of money paid to any person under subsection (1) and remaining in his hands unadministered in the same manner and to the same extent as if the said person had obtained letters of administration of the estate of the deceased ; and nothing in this section shall affect any claim of an executor or administrator or other representative of the deceased against such person other than a claim to recover amounts lawfully paid by him in due course of administration of the estate of the deceased.

(a) the Monetary Board of the Central Bank shall appoint a person to be or to act as the Registrar, and

(b) such Monetary Board shall be the trustees of the sinking fund established for each loan.

(1) In the case of any public or other office to which the Minister in charge of the subject of Finance may by notification in the Gazette declare this subsection to apply

(2) When registered stock or a promissory note is issued to or held by the holder of an office to which subsection (1) applies, such stock or promissory note shall be deemed to be transferred, notwithstanding anything to the contrary in this Ordinance, from each holder of the office to the succeeding holder of the office on the date on which the latter takes charge of the office.

(3) When the holder of an office to which subsection (1) applies indorses to a third party a promissory note made or indorsed as aforesaid, he shall subscribe the indorsement with his name and the name of the office.

(4) This section applies as well to an office of which there are two or more joint holders as to an office of which there is a single holder.

(1) Save as otherwise provided in or under this Ordinance, no notice of any trust in respect of any registered stock or securities shall be receivable by the Registrar or by the Government.

(1A) The provisions of subsection (1) shall not preclude the Registrar or the Central Bank from recognizing Treasury Bonds held in trust for customers by primary dealers or other authorized persons in accordance with directions issued from time to time by the Central Bank.

(2) The Registrar shall not be deemed to have received notice of any trust by reason only of the fact that he has recognized an indorsement on a Government promissory note by an executor or an administrator as such, nor shall he inquire into the terms of any will by which such executor or administrator may be bound ; but, on being satisfied of the due appointment of such executor or administrator, he shall be entitled to treat such executor or administrator as the owner of any promissory note belonging to the estate represented by such executor or administrator.

(1) No person shall be entitled to inspect, or to receive information derived from, any registered stock or security in the possession of the Government or any register, book or other document kepi or maintained by or on behalf of the Government in relation to registered stock or securities, save on payment of such fee and save in such circumstances and on such terms and conditions as may be prescribed.

(2) Nothing in this section shall apply to the Auditor-General or to the Commissioner-General of Inland Revenue

(1) The Minister in charge of the subject of Finance may make regulations for the purpose of giving effect to the provisions of this Ordinance.

(2) In particular and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters;

(2A) The Scripless Treasury Bonds issued under this Ordinance shall be transferred, pledged, encumbered, lent, borrowed or otherwise transacted in, as provided by regulations and any transfer, pledge, encumbrance, loan, borrowing or any other transaction effected accordingly shall be valid and effectual notwithstanding any other law relating to such transactions in Treasury Bonds issued in the form of written certificates.

(3) Nothing in any regulation made under paragraphs (f) and (g) shall, as between any trustees or as between any trustees and beneficiaries under a trust, be deemed to authorize the trustees to act otherwise than in accordance with the rules of law applying to the trust and the terms of the instrument constituting the trust:

and neither the Government nor the Registrar nor any person holding or acquiring any interest in any registered stock shall by reason only of any entry in the register of stock or of anything in any document or instrument relating to registered stock, be affected with notice of any trust or of the fiduciary character of any stockholder or of any fiduciary obligation attaching to the holding of any registered stock.

(4) All regulations made by the Minister in charge of the subject of Finance shall be published in the Gazette and shall upon such publication be as valid and effectual as if herein enacted.

(1) Any person who-

shall be guilty of an offence under this Ordinance.

(2) Any person guilty of an offence under this Ordinance shall be liable on conviction after summary trial before a Magistrate, to imprisonment for a term not exceeding five years or to a fine not exceeding ten million rupees or where the offence has resulted in monetary loss or monetary gain or a loss or gain which is quantifiable in monetary terms to any person, to a fine equivalent to twice the value of such loss or gain or to both such imprisonment and fine.

(3) The Central Bank may, with the consent of Court, having regard to the circumstances in which an offence under this Act was committed compound such offence for a sum of money not exceeding rupees five million, or where the offence has resulted in monetary loss or monetary gain or a loss or gain which is quantifiable in monetary terms, to any person, for a sum of money equivalent to one and a half times the value of such loss or gain.

(4) The compounding of an offence under this section shall have the effect of an acquittal.