Sri Lanka Railways Authority

(1) There shall be established an Authority which shall be called the Sri Lanka Railways Authority (herein after in this Act referred to as the ” Railways Authority “).

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

(1) The administration and management of the affairs of the Railways Authority shall be vested in a Board of Directors (hereinafter referred to as ” the Board “) which shall consist of

(2) The provisions of the First Schedule to this Act shall have effect in relation to the appointment, and the term of office of the Chairman and the members of the Board and to the meetings of the Board.

(a) provide services for the carriage of goods and persons by rail, at prices which will ensure the amortization of the investment of the Railways Authority ; in the provision of such services and an appropriate return on the capital invested by the Railways Authority in the provision of such services;

(b) promote the national objective that goods and persons should be carried in the mode that is most advantageous to the nation by following a proper pricing policy;

(c) promote road rail co-ordination and portrait co-ordination where such co-ordination is deemed necessary in the national interest;

(d) manage efficiently all immovable property vested in the Railways Authority and to handover to the Government, any such property which is not required for the discharge of its functions.

(a) to fix tariffs, rates and procedures for the carriage by it of goods and persons by rail in such manner as may be appropriate to ensure the competitiveness of the services provided by it with the services provided by other modes of transport;

(b) to enter into Public Service Obligation contracts with the Government for any services provided by it to any Government Department, Public Corporation, Provincial Council or local authority at rates below such rates and tariffs as are fixed by it in the exercise of its powers under paragraph (a) ;

(c) to employ such officers and servants as may be necessary for the discharge of the functions of the Railways Authority, and to determine the cadre, of the remuneration payable to, and the terms and conditions of service applicable to, such officers and servants ;

(d) to enter into such contracts and agreements as may be necessary for the discharge of its functions;

(e) to develop a proper railway costing system designed to meet its commercial objectives, which costing system shall indicate as far as possible, the full costs of railway services provided by the Railways Authority, including fixed and variable costs, long run and short run marginal costs and other appropriate cost concepts, for individual lines, commodities and movements;

(f) to make rules in relation to the officers and servants of the Railways Authority, including their appointment, promotion, remuneration, disciplinary control, leave, holidays and the grant of loans and advances to such officers and servants;

(g) to make rules and prescribe procedures in respect of the administration of the affairs of the Railways Authority;

(h) to prescribe standards, including safety standards, for rail services;

(i) to delegate to the Chairman or to any member or officer of the Railways Authority any such functions as the Board may consider necessary to delegate for the efficient discharge of the functions of the Railways Authority ;

(j) to establish an insurance scheme, a provident fund, a welfare fund and to provide welfare, health and recreational facilities, for the benefit of the officers and servants employed by the Railways Authority ;

(k) to acquire, hold, take or give on lease, hire, pledge, sell or otherwise dispose of, any movable or immovable property;

(l) to do anything for the purpose of improving the efficiency and advancing the skill of officers and servants employed by the Railways Authority or the efficiency of the equipment of the Railways Authority, or the manner in which such equipment is operated, including the provision by the Railways Authority and the assistance for the provision by others, of facilities for training persons required to discharge the functions of the Railways Authority.

(1) The Minister may give the Railways Authority such general or special directions in writing as to the performance of its duties and the exercise of its powers, under this Act, on matters which appear to him to affect the national interest and the Railways Authority shall give effect to such directions

(2) The Minister may, from time to time, direct the Railways Authority to furnish to him, in such form as he may require, returns, accounts and other information with respect to its property and activities, and the Railways Authority shall carry out every such direction.

(3) The Minister may, from time to time, order all or any of the activities of the Railways Authority to be investigated and reported upon by such person or persons as he may specify, and upon such order being made, the Railways Authority shall afford all such facilities, and furnish all such information, as may be necessary to give effect to such order.

(1) The Board may delegate in writing to the Chairman any of its powers, functions or duties other than the power conferred by this section.

(2) The Chairman shall be the chief accounting officer of the Railways Authority.

(3) The Chairman may with the written approval of the Board, delegate in writing to any officer or servant of the Railways Authority, any power, duty or function delegated to him under subsection (1).

(1) The Board shall appoint a competent and experienced person as Managing Director of the Railways Authority.

(2) The Managing Director shall, subject to the general direction of the Board on matters of policy and special directions of the Chairman, be responsible for the direction of the activities of the Railways Authority, and shall exercise administrative control over the officers and servants of the Railways Authority.

(3) The Managing Director, may, with the approval in writing of the Board, delegate in writing to any other officer or servant of the Railways Authority such of his powers, duties or functions as he may from time to time consider necessary, and any such officer or servant to whom any such power, duty or function is delegated shall exercise, perform or discharge such power, duty or function subject to the general or special directions of the Managing Director.

(4) Where the Managing Director is temporarily unable to perform his duties, another person may be appointed by the Board to act in his place.

(1) The Board shall appoint a qualified, competent and experienced person as the Chief Finance Manager of the Railways Authority.

(2) All decisions of a financial nature, involving expenditure of amounts exceeding two million rupees, shall be taken by the Board only after the Chief Finance Manager has submitted to it a financial analysis indicating all the financial implications of the expenditure.

(a) every public officer of the Railways Department not being any such officer in a transferable service of the Government (other than an officer in the Sri Lanka Engineering Service) shall, before the appointed date, give notice in writing to the General Manager of Railways that such officer intends, on the appointed date

(b) a notice given to the General Manager of Railways before the appointed date by a public officer of the Railways Department, under paragraph (a), shall be final.

(1) Any public officer of the Railways Department who does not give the notice required under sub-paragraphs (ii), (iii), (iv) or (v) of paragraph (a) of section 11 before the appointed date, or gives such notice under sub-paragraph (i) of paragraph (a) of that section, shall continue in office as a public officer of the Railways Department on and after that date.

(2) A public officer referred to in subsection (1) so long as he continues in such office, shall perform work for and on behalf of the Railways Authority in his capacity a such officer and be eligible to the same conditions of service as he was entitled to while doing work for the Railways Department in his capacity as such officer and shall be subject to such disciplinary control as any other public officer.

(3) Where any public officer of the Railways Department continues in office as such officer on and after the appointed date performing work for and on behalf of the Railways Authority in his capacity as such officer, the Railways Authority shall pay out of the funds of the Railways Authority to the Deputy Secretary to the Treasury to be credited to the Consolidated Fund, such sum not exceeding such amount as may be determined by the Minister in charge of the subject of Finance as is sufficient to cover the salary, and other expenses including pension or provident fund contributions, payable by the Government in respect of such officer.

(1) Any public officer of the Railways Department who gives notice under sub-paragraph (ii) or (ii) or (iv) or (v) of paragraph (a) of section 11 before the appointed date shall

(2) In the event of any conflict or inconsistency between the provisions of subsection (1) of this section and sub section (1) of section 12 and any other provisions of this Act, the provisions of those subsections shall to the extent of such conflict or inconsistency prevail over such other provisions.

(a) such officer shall be employed by the Railways Authority on such terms and conditions as may be agreed upon by such officer and the Railways Authority:

Provided however, that such terms and conditions shall not be less favourable than the terms and conditions on which such officer was previously employed in the Railways Department;

(b) if on the appointed date, such officer was a public officer of the Railways Department holding a post declared to be pensionable and who had less than ten and not less than eight years’ pensionable service, then

(c) notwithstanding anything to the contrary in this Act or in any other written law, where a public officer of the Railways Department becomes an officer of the Railways Authority by virtue of the operation of the provisions of section 13;

(1) Any person who on and after the appointed date continues in office as a public officer of the Railways Department performing work for and on behalf of the Railways Authority in his capacity as such officer may at any time thereafter with his consent be permanently appointed to the Staff of the Railways Authority.

(2) Where any public officer is appointed to the staff of Railways Authority under subsection (1), the provisions of subsection (3) of section 13 of the Transport Board Law, No. 19 of 1978, shall, mutatis mutandis, apply to and in relation to him.

(1) All property, movable and immovable vested in the State and used for the purposes of the Railways Department on the day preceding the appointed date (including all installations, plant, machinery and equipment installed or maintained by the Railways Department and all things of whatever description used by the Railways Department for the provision of rail services and moneys lying to the credit of the Railways’ Department on the day preceding the appointed date out of sums appropriated by Parliament for the use of the Railways Department)., shall vest in the Railways Authority with effect from the appointed date.

(2) Subject to the provisions of subsection (5) all con tracts entered into, by or with, the General Manager of Railways for or on behalf of the State and subsisting on the day preceding the appointed date, shall be deemed, with effect from the appointed date to be contracts entered into by, or with, the Railways Authority and may be enforced accordingly.

(3) All actions and proceedings instituted, by or against, the General Manager of Railways or the Attorney-General as representing the General Manager of Railways and pending on the day preceding the appointed date, shall, with effect from the appointed date, be deemed to be actions and proceedings instituted by, or against, the Railways Authority and may be continued and completed accordingly.

(4) All decrees and awards entered or made by any court or tribunal in any action or proceeding instituted by or against the General Manager of Railways or the Attorney- General as representing the General Manager of Railways and remaining unsatisfied on the day preceding the appoint ed date, shall be deemed, with effect from the appointed date, to be decrees or awards entered or made, for or against the Railways Authority and may be enforced accordingly.

(5) All liabilities incurred by the General Manager of Railways for and on behalf of the State and subsisting on. the day preceding the appointed date (other than such liabilities as have been incurred under any agreement entered into by the General Manager of Railways for and on behalf of the Government of Sri Lanka with any foreign Government or foreign Organization and subsisting on the appointed date) shall be deemed to be the liabilities of the Railways Authority with effect from the appointed date.

(6) Every power, duty and function conferred or imposed on, or assigned to, the General Manager of Railways by any written law (other than the Railways Ordinance) shall, with effect from the appointed date, be exercised, performed and discharged by the Railways Authority and any act required by such other written law, to be done in relation to the General Manager of Railways shall, with effect from the appointed date, be done in relation to the Railways Authority and accordingly, every reference in such other written law to “General Manager of Railways” shall be deemed, with effect from the appointed date, to be a reference to ” the Sri Lanka Railways Authority “.

(1) Notwithstanding anything in the Crown Lands Ordinance or any other written law, where the Minister considers that any State land is required by the Railways Authority for the purposes of discharging its functions, the Minister may, with the concurrence of the Minister in charge of the subject of Lands, by Order (hereinafter in this Act referred to as a “Vesting Order”) published in the Gazette, vest such land in the Railways Authority with effect from such date as shall be specified in the Order, subject to such restrictions or conditions, if any, as may be specified therein.

(2) A Vesting Order shall, subject to such restrictions and conditions as may be specified therein have the effect of giving the Railways Authority absolute title to any land specified in such Vesting Order, free from all encumbrances.

(1) Where any immovable property, other than immovable property vested in the State, is required for the purposes of the Railways Authority and the Railways Authority is unable, by agreement to purchase such property, that property may, if the Minister by Order published in the Gazette approves the proposed acquisition, be deemed to be required for a public purpose and may accordingly be acquired under the Land Acquisition Act and be transferred to the Railways Authority under that Act.

(2) Any sum payable for the acquisition of any immovable property under the Land Acquisition Act by the State shall be payable by the Railways Authority.

(1) The Railways Authority shall have its own Fund.

(2) There shall be paid into the Fund of the Railways Authority

(3) There shall be paid out of the Fund of the Railways Authority all such sums as are required to defray all expenses incurred by the Railways Authority in the exercise, performance and discharge of its powers, duties and functions under this Act.

(1) The Railways Authority may create and issue any stock for the purpose of raising any sums of money required by it for the discharge of its functions under this Act. The stock so created and issued shall hereinafter be referred to as ” Railways Authority Stock”.

(2) Railways Authority Stock shall be issued, transferred, dealt with, redeemed and cancelled in accordance with such terms as may be determined by the Railways Authority with the approval of the Minister, given with the concurrence of the Minister in charge of the subject of Finance.

(1) The Minister in charge of the subject of Finance may with the concurrence of the Minister, guarantee the repayment of the principal of, and the payment of the interest on, any Railways Authority Stock created and issued under subsection (1) of section 20 or any other loan taken by the Railways Authority from any person in or outside Sri Lanka.

(2) Any sum required for the fulfillment of a guarantee provided under subsection (1) may with the prior approval of Parliament, be paid out of the Consolidated Fund.

(3) Any sum paid out of the Consolidated Fund in fulfillment of a guarantee provided under subsection (1) shall be repaid, together with interest thereon, at such rate as the Minister in charge of the subject of Finance may determine with the concurrence of the Minister, by the Railways Authority in such manner and over such period as the Minister in charge of the subject of Finance may with such concurrence determine.

(4) Immediately after any guarantee is given under sub section (1) the Minister in charge of the subject of Finance shall lay, or cause to be laid, a statement of the guarantee before Parliament.

(5) Where any sum is paid under subsection (2) out of the Consolidated Fund in fulfillment of a guarantee provided under subsection (1), the Minister in charge of the subject of Finance snail forthwith lay, or cause to be laid, a statement of the payment before Parliament.

(a) the working and establishment expenses incurred by the Railways Authority in connection with the exercise and performance of its powers and duties, properly chargeable to revenue account;

(b) the interest on any loans raised by the Railways Authority under the provisions of this Act; and

(c) the taxes under any written law.

(a) writing off the preliminary expenses incurred in the establishment of the Railways Authority ;

(b) writing off any accumulated losses brought forward;

(c) writing off any unproductive expenditure not properly chargeable to revenue ;

(d) transfers to the insurance reserve which the Board is hereby authorized to establish and maintain;

(e) transfers to the assets replacement reserve which the Board is hereby authorized to establish and maintain ;

(f) transfers to the loan redemption reserve which the Board is hereby authorized to establish and maintain;

(g) transfers to any development reserve which the Board is hereby authorized to establish and maintain;

(h) payment of interest and other charges on, (including redemption of) issued and outstanding Railways Authority stock.

(1) The Board shall cause proper accounts of the income and expenditure of the Railways Authority and of all its other transactions to be kept and shall prepare . an annual statement of accounts and statistics relating to the business of the Railways Authority in such form, and containing such particulars, as the Minister with the concurrence of the Minister in charge of the subject of Finance may from time to time specify.

(2) The accounting system adopted shall be designed to provide historical information for a railway costing system. The costing system shall be designed to determine the full costs of railway operations including fixed and variable costs, long run and short run variable costs and other appropriate cost concepts for individual lines, commodities and movements, to enable the making of rational pricing and market decisions.

(1) The financial year of the Railways 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 Railways Authority.

(1) The Board shall, on receipt of the Auditor-General’s report in respect of any year, cause a copy of each of the following documents relating to that year to be transmitted to the Minister:

(2) The Minister shall lay copies of the documents transmitted to him under subsection (1) before Parliament prior to the end of the year next following the year to which such report and accounts relate.

(3) The Board shall cause copies of the reports and statements referred to in subsection (2) to be printed at the expense of the Railways Authority and to be made available for purchase by the public at such price as shall be deter mined by such Board

(a) a contract which, if made between private persons would be by law required to be in writing, may be made on behalf of the Railways Authority in writing under the seal of the Railways Authority;

(b) a contract which, if made between private persona would be by law required to be in writing signed by the parties to be charged therewith, may be made or. behalf of the Railways Authority in writing signed by any person or persons duly authorized thereto by the Board; and

(c) a contract which, if made between private person would in law be valid although made by parol only and not reduced into writing, may be made by parol on behalf of the Railways Authority by any person or persons duly authorized thereto by the Board.

(1) The seal of the Railways Authority shall be in the custody of the Board or any officer of the Railways Authority authorized in that behalf by the Board.

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

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

(1) No suit or prosecution shall lie

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

(3) Any expense incurred by any such person as is referred to in paragraph (b) of subsection (1) in any suit or prosecution brought against him before any court in respect of any act which is done or purported to be done, by him under this Act or under the Railways Ordinance or on the direction of the Railways Authority shall, if the court holds that such act was done in good faith, be paid out of the Fund of the Railways Authority, unless such expense is recovered by him in such suit or prosecution.

(1) The Minister may make regulations in respect of any matter required by this Act to be prescribed or in respect of which regulations are authorized by this Act to be made.

(2) Every regulation made under subsection (1) shall be published in the Gazette and shall come into operation on the date of such publication or on such later date as may be specified in the regulation.

(3) Every regulation made under subsection (1) shall as soon as convenient after its publication in the Gazette be brought before Parliament for approval and any regulation which is not so approved shall be deemed to be rescinded as from the date of such disapproval but without prejudice to anything previously done thereunder.

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