Finance ACT – 1963

Arrangement of Sections

1. Short title.

PART I

National Lotteries Board and National Lotteries

2. Date of operation of this Part of this Act.

3. National Lotteries Board to be established.

4. Constitution of the Board.

5. Remuneration of members of the Board.

6. Appointment of officers and servants.

7. Property, contracts and expenditure of the Board.

8. Board to be subject to directions of Minister.

9. Fund of the Board.

10. Power of Minister to grant a loan to the Board.

11. Audit of Accounts.

12. Power to make rules.

13. Protection for action taken under this Part of this Act or on the direction of the Board.

14. National lotteries.

14A. Terms and conditions of licence issued under section 14.

15. National lotteries not to be in connection with horse races.

16. Prizes in national lotteries.

17. Proceeds of national lotteries.

18. Repealed.

19. Application of Lotteries Ordinance.

20. Rules.

21. Offences.

22. Offences to be cognizable offences.

23. Interpretation.

24. Repeal of the Hospital Lottories Act.

25. Transitory provisions.

26. Transfer of officers and servants.

PART II

Repealed

[Ss 27–46.]

PART III

Amendments to the Pawnbrokers Ordinance, Money Lending Ordinance, Marriage Registration Ordinance, Insurance Corporation Act No. 2 of 1961, and Registration of Documents Ordinance

47. Amendments to the Pawnbrokers Ordinance.

48. Amendments to the Money Lending Ordinance.

49. Amendments to the Marriage Registration Ordinance

50. Amendments to Act, No. 2 of 1961.

51. Amendment of the First Schedule to Registration of Documents Ordinance.

Part IV

repealed

[Ss 52–54.]

PART V

Amendments to the Inland Revenue Act, No. 4 of 1963

55. Date of operation of this Part of this Act.

56. Amendment of sections 39 and 42 of Act, No. 4 of 1963.

57. Addition of new Schedules to the principal Act.

PART VI

repealed

[Ss 58–66A.]

PART VII

Amendments to the Monetary Law Act and the Peoples’ Bank Act, No 29 of 1961

67. Insertion of new Part IIIA in Chapter V of the Monetary Law Act.

68. Amendment to Act, No. 29 of 1961.

PART VIII

The Acquisition by the Peoples’ Bank of Certain Premises and the Disposal of Such Premises

69. Date of operation of this Part of this Act.

70. Administration of this Part of this Act.

71. Acquisition of certain premises.

72. Acquisition procedure.

72A. Revocation of vesting Order.

73. Notice to persons entitled to make claims to the compensation payable under this Part of this Act in respect of any premises vested in the Bank.

74. Provisions to be complied with by the Chairman of the Board of Directors of the Bank on receipt of claims to compensation.

75. Reference to the Compensation Tribunal for an award as to compensation in respect of any premises vested in the Bank under this Part of this Act.

76. Compensation in respect of premises vested in the Bank under this Act.

77. When compensation in respect of any vested premises accrues due.

78. Proportionate payment of compensation.

79. Interest on compensation.

80. Right to compensation.

81. Provisions for cases where compensation is not accepted.

82. Constitution of the Compensation Tribunal.

83. Meetings of the Compensation Tribunal.

84. Proceedings before Compensation Tribunal.

85. Power to summon witnesses.

85A. Offences under this Act in connection with meetings of the Compensation Tribunal.

86. Determination of the Compensation Tribunal.

87. Compensation Tribunal may regulate its procedure at meetings.

88. The Bank, applicant under section 3 and claimants to compensation to be given opportunity of being heard.

89. Provisions in regard to evidence.

90. An award as to compensation by the Compensation Tribunal on a reference.

91. Disposal of premises acquired by the Bank under the preceding provisions of this Part of this Act.

92. Power to enter, survey.

93. Power of Bank to call for returns.

94. Prohibition of act which diminishes the value of any premises to be vested in the Bank under this Part of this Act.

95. Informality or irregularity.

96. Financial provisions.

96A. Applications made to the Ceylon State Mortgage Bank deemed to be applications made to the People’s Bank.

97. Regulations.

98. Interpretation.

98A. Repealed.

PART IX

Amendments to the Stamp Ordinance

99. Date of operation of this Part of this Act.

100. Insertion of new section 2A in Chapter 247.

101. Amendment of Part I of Schedule A to the principal enactment.

102. Amendment of Part II of Schedule A to the principal enactment.

103. Amendment of Part III of Schedule A to the principal enactment.

104. Amendment of Part IV of Schedule A to the principal enactment.

105. Amendment of Part V of Schedule A to the principal enactment.

PART X

Provisions Relating to the Sale of Certain Motor Cars

106. Date of operation of this Part of this Act.

107. Prohibition of the sale of motor cars to which this Part of this Act applies without the approval of the Registrar.

108. Applications for approval to sell motor cars to which this Part of this Act applies.

109. Condition for the grant of approval.

110. Manner of computation of the sum payable to the Registrar by a purchaser of a motor car to which this Part of this Act applies.

111. Purchaser of a motor car to which this Part of this Act applies not entitled to be registered as new owner if he does not pay the sum required to be paid under section 109.

112. Sums paid to the Registrar under this Part of this Act to be credited to the Consolidated Fund of Ceylon.

113. Provisions of this Part of this Act to prevail.

114. A person who has applied to be registered as the new owner of a motor car to which this Part of this Act applies and which he has purchased after August 2, 1963, and before the day on which this Act becomes an Act of Parliament shall be deemed to have complied with the provisions of this Part of this Act if he pays a tax in respect of that motor car.

115. Interpretation.

PART XI

Issue of Treasury Bills

116. Additional power to borrow by the issue of Treasury Bills.

117. Application of Local Treasury-Bills Ordinance.

PART XII

Business Turnover Tax

118. Operation of this Part of this Act.

119. Charge of the business turnover tax.

119A. Recovery of business turnover tax not to be invalid by reason only of non-registration of hotels and guest houses.

120. The circumstances in which a person becomes chargeable with business turnover tax.

121. Excepted articles.

122. Payment of business turnover tax.

123. Returns.

123A. Forms.

124. Power of Assessor to make assessments.

125. Additional assessments.

125A. Power of Assessor to estimate sale price

125B. Assessor to give reasons for not accepting a return.

126. Returns and information to be furnished.

127. Information to be furnished by officials.

128. Vouchers to be issued by persons chargeable with business turnover tax.

129. Maintenance of registers.

130. Who may act for incapacitated person.

131. Precedent partner to act on behalf of partnership.

132. Principal officer to act on behalf of a company or body of persons.

133. Liability to pay business turnover tax in the case of cessation of business.

134. Liability of executor to pay business turnover tax,

135. Liability of certain persons to pay business turnover tax in respect of businesses not belonging to them.

136. Joint agents, trustees and executors.

137. Persons liable to pay business turnover tax upon liquidation of a company or dissolution of a body of persons.

137A. Deduction of turnover tax from payments.

138. Appeals to the Commissioner.

138A. Appeals on a question of law to the Supreme Court.

139. Assessments or amended assessments to be final.

140. Penalty for under payment of business turnover tax.

141. Meaning of “business turnover tax” for the purposes of sections 142 to 148.

142. Business turnover tax to be first charge.

143. Recovery of business turnover tax by seizure and sale.

144. Proceedings for recovery before a Magistrate.

145. Recovery of business turnover tax out of debts.

146. Recovery of business turnover tax from persons leaving Ceylon.

147. Use of more than one means of recovery.

148. Power of Commissioner to obtain information for the recovery of business turnover tax.

149. Signature and service of notices.

150. Validity of assessments.

151. Power to search buildings or places.

152. Business turnover tax paid in excess to be refunded.

152A. Repayment to an exporter of the business turnover tax paid on articles exported.

153. Administration of this part of this Act.

154. Official Secretary.

155. Offences.

156. Prosecutions to be with the sanction of the Commissioner.

157. Business turnover tax to be a deduction for income tax purposes.

158. Regulations.

159. Interpretation.

PART XIII

General

160. Interpretation.

161. Retroactive operation.

SCHEDULES

7 of 1973,

16 of 1973,

47 of 1973,

3 of 1978,

26 of 1978,

11 of 1963,

10 of 1965,

33 of 1968,

50 of 1968,

35 of 1969,

55 of 1971,

29 of 1980,

37 of 1981,

14 of 1982,

19 of 1984,

22 of 1992,

35 of 1997,

22 of 1998,

36 of 2000,

11 of 2002,

8 of 2004,

38 of 2014.

AN ACT to enact the provisions of law necessary to give legal force to certain proposals, financial and otherwise, for the Financial Year commencing on October 1, 1963.

[Date of Commencement: 21st December, 1963]

1. Short title.

This Act may be cited as the Finance Act.

PART I

National Lotteries Board and National Lotteries

2. Date of operation of this Part of this Act.

This Part of this Act shall come into operation on the appointed date.1

3. National Lotteries Board to be established.

(1) A Board to be called the National Lotteries Board, hereinafter in this Part of this Act referred to as “the Board”, shall be established for the purposes of this Part of this Act.

(2) The Board shall be a body corporate with perpetual succession and a common seal and may by its name sue and be sued.

4. Constitution of the Board.

(1) The Board shall consist of not more than five members appointed by the Minister.

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

(3) The Minister may, if he thinks it expedient to do so, remove, by Order published in the Gazette, any member of the Board from office without reason stated.

(4) A member of the Board in respect of whom an Order under subsection (3) of this section is made by the Minister shall vacate his office on the date of the publication of such Order in the Gazette.

(5) A member of the Board may at any time resign his office by letter addressed to the Minister.

(6) If the Chairman or any other member of the Board is temporarily unable to discharge the duties of his office on account of ill health or absence from Ceylon or any other cause, the Minister may appoint some other person to act in his place as the Chairman, or as a member, of the Board, as the case may be.

(7) Every member of the Board shall, unless he earlier vacates office by resignation or removal, hold office for a period of five years. Any member of the Board who vacates office by effluxion of time shall be eligible for reappointment.

(8) No act or proceeding of the Board shall be invalid by reason only of the existence of any vacancy among its members or any defect in the appointment of any of its members.

5. Remuneration of members of the Board.

The members of the Board may be remunerated in such manner and at such rates as may be determined by the Minister. The remuneration, if any, shall be paid out of the Fund of the Board.

6. Appointment of officers and servants.

(1) The staff necessary for the discharge of the Board’s duties under this Part of this Act shall be determined by the Board, and every appointment to such staff shall be made by the Board.

(2) The officers and servants of the Board shall be remunerated in such manner and at such rates, and shall be subject to such conditions of service as may be determined by rules made under this Part of this Act. Such remuneration shall be paid out of the Fund of the Board.

(3) The Board may, in accordance with rules made under this Part of this Act, establish and maintain a provident fund for the benefit of its officers and servants, make contributions out of its Fund to such provident fund, regulate the management and investment thereof, and fix the contributions to be made thereto by, and the payments to be made therefrom to, or in respect of, such officers and servants.

7. Property, contracts and expenditure of the Board.

(1) The Board may acquire, hold and dispose of any movable and immovable property, and enter into contracts and otherwise do all such acts as may be necessary for the purpose of carrying out the provisions of this Part of this Act.

(2) All sums payable by the Board under any contract entered into by the Board or in respect of any movable or immovable property acquired or held by the Board shall be paid out of the Fund of the Board. All sums received by the Board under any such contract or in respect of any such property shall be paid to the Fund of the Board.

(3) All sums payable by the Board for the purpose of defraying any expenditure incurred in the management of the affairs or the transaction of the business of the Board, or the exercise of the powers or the performance of the duties of the Board under this Part of this Act, shall be paid out of the Fund of the Board.

8. Board to be subject to directions of Minister.

In the exercise of its powers and the discharge of its duties under this Part of this Act, the Board shall be subject to the general or special directions of the Minister.

9. Fund of the Board.

(1) The Board shall have its own Fund.

(2) There shall be paid to the Fund of the Board all sums required by this Part of this Act to be so paid.

(3) There shall be paid out of the Fund of the Board all sums required by this Part of this Act to be so paid.

(4) All cheques for the payment of money out of the Fund of the Board shall be signed by a member of the Board and by any such officer employed by the Board as may be authorised in that behalf by the Board.

10. Power of Minister to grant a loan to the Board.

(1) The Minister may grant out of the Consolidated Fund to the Board, free of interest, a loan not exceeding rupees one million for the purpose of enabling the Board to meet the initial expenses incurred by the Board in the discharge of its duties under this Part of this Act.

(2) Any sum granted to the Board by way of loan under subsection (1) of this section—

(a) shall be paid to the Fund of the Board; and

(b) shall be repaid by the Board to the Consolidated Fund out of the Fund of the Board in such manner as the Minister may from time to time direct.

11. Audit of Accounts.

Article 154 of the Constitution relating to the audit of the accounts of public Corporations shall apply to the audit of the accounts of the Fund of the Board.

[S 11 subs by s 2 of Act 22 of 1998.]

12. Power to make rules.

Rules may be made under this Part of this Act in respect of all or any of the following matters relating to the Board—

(a) the custody and use of its seal;

(b) the appointment, promotion, dismissal and disciplinary control of its officers and servants;

(c) the meetings of the Board and the quorum for, and the procedure to be followed at, such meetings; and

(d) the establishment and maintenance of a provident fund for its officers and servants, and the payment of contributions to that fund by the Board and such officers and servants.

13. Protection for action taken under this Part of this Act or on the direction of the Board.

(1) No suit or prosecution shall lie—

(a) against the Board for any act which in good faith is done or purported to be done by the Board under this Part of this Act; or

(b) against any member, officer, servant or agent of the Board for any act which in good faith is done or purported to be done by him under this Part of this Act or on the direction of the Board.

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

(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 done or purported to be done by him under this Part of this Act or on the direction of the Board shall, if the court holds that such act was so done or purported to be done in good faith, be paid out of the Fund of the Board, unless that expense is recovered by him in such suit or prosecution.

14. National lotteries.

(1) The Board may conduct lotteries for the purposes of this part of this Act.

(2) The Board may enter into agreements with any other person, for the conduct by such other person, of lotteries for the purposes of this Part of this Act, on behalf of the Board.

(3) The Board may by licence issued in that behalf, authorise the conduct by any other person, of lotteries for the purposes of this Part of this Act,

(4) Every lottery conducted by the Board under subsection (1) or conducted on behalf of the Board under an agreement entered into under subsection (2) or conducted under the authority of a hence issued under subsection (3) is in this Part of this Act referred to as a “national lottery”.

[S 14 subs by s 3 of Act 22 of 1998.]

14A. Terms and conditions of licence issued under section 14.

(1) Every licence issued by the Board conditions under subsection (3) of section 14 shall be subject to such terms and conditions as may be issued determined by the Board and approved by the under Minister.

(2) There shall be paid in respect of every licence issued under subsection (3) of section 14, a fee of such amount as may be prescribed. The fee shall be paid to the Board by the person to whom the licence is issued and shall be credited by the Board to the Consolidated Fund.

(3) It shall be lawful for the Board to cancel a licence issued by it under subsection (3) of section 14, if the holder of the licence fails to comply with, any term or condition to which the licence is subject or any provision of this Act.

[S 14A ins by s 4 of Act 22 of 1998.]

15. National lotteries not to be in connection with horse races.

No national lottery shall be conducted or authorised to be conducted in connection with any horse-race or any other form of racing.

[S 15 am by s 5 of Act 22 of 1998.]

16. Prizes in national lotteries.

(1) The number of prizes to be awarded in a national lottery and the value of each such prize shall—

(a) in the case of a lottery conducted by the Board, be as prescribed;

(b) in the case of a lottery conducted on behalf of the Board under an agreement entered into under subsection (2) of section 14, be as specified in such agreement;

(c) in the case of a lottery conducted under the authority of a licence issued under subsection (3) of section 14 be as specified in the terms and conditions of such licence.

[S 16(1) subs by s 6(1) of Act 22 of 1998.]

(2) Every prize awarded in a national lottery shall consist of a sum of money and every such prize shall be exempt from the operation of section 3 (1) (i) of the Inland Revenue Act, No. 4 of 1963, and shall not be included in the assessment of profits as income for the payment of tax by such prize winner under the provisions of that Act.

(3) The prize winners in every national lottery shall be determined—

(a) in the case of a lottery conducted by the Board, in such manner as may be prescribed;

(b) in the case of a lottery conducted on behalf of the Board, under an agreement entered into under subsection (2) of section 14, in such manner as may be specified in such agreement; and

(c) in the case of a lottery conducted under the authority of a licence issued under subsection (3) of section 14, in such manner as may be specified in the terms and conditions of such licence.

[S 16(3) subs by s 6(2) of Act 22 of 1998.]

(4) After the expiration of a period of six months reckoned from the date of the determination of the winners of a national lottery conducted by the Board, any prize in such national lottery which has not been granted to the person entitled thereto by reason of the fact that such person is not to be found shall be forfeited, and shall, if such prize relates to a national lottery, conducted by the Board otherwise than under an agreement entered into under subsection (2) of section 14, be paid to the Fund of the Board, and if such prize relates to a national lottery conducted by the Board, under an agreement entered into under subsection (2) of section 14, be disposed of in accordance with the terms of such agreement:

[S 16(4) am by s 6(3)(a) of Act 22 of 1998.]

Provided however, that where any action or proceeding arising out of any claim made in respect of such prize is pending before any court at the expiration of the period aforesaid, such forfeiture shall not be made, and if in the final determination of that action or proceeding any person is declared to be entitled to such prize, the Board or the person conducting such national lottery on behalf of the Board or the person conducting such national lottery under the authority of a licence issued under subsection (3) of section 14, as the case may be, shall grant such prize to that person, and if no person is so declared, such prize shall he forfeited and shall, if such prize relates to a national lottery conducted by the Board, otherwise than under an agreement entered into under subsection (2) of section 14, be paid to the fund of the Board, and if such prize relates to a lottery conducted by the Board under an agreement entered into under subsection (2) of section 14, be disposed of in accordance with the terms of such agreement.

[S 16(4) subs by s 4(3) of Act 35 of 1997; proviso am by s 6(3)(b) of Act 22 of 1998.]

17. Proceeds of national lotteries.

(1) The proceeds of every national lottery conducted by the Board shall be paid in the first instance to the Fund of the Board.

[S 17(1) am by s 7(1) of Act 22 of 1998.]

(1A) Where the prize consisting of money in a national lottery conducted by the Board, is not won by any person, such prize money shall notwithstanding anything to the contrary in this section, be credited to a Prize Reserve Account and the monies accumulated in such account shall be used for the award of at subsequent national lotteries conducted by the Board.

[S 17(1A) ins by s 7(2) of Act 22 of 1998.]

(2) The Board shall pay to the Consolidated Fund through the Deputy Secretary to the Treasury the balance of the proceeds of every national lottery conducted by the Board, otherwise than under an agreement entered into under subsection (2) of section 14, after deducting therefrom such proceeds of an amount approved by the Secretary to the Ministry of the Minister as the amount necessary for the purpose of—

[S 17(2) am by s 5(2) of Act 35 of 1997; s 7(3) of Act 22
of 1998.]

(a) defraying or reimbursing the Fund of the Board for the payment of, the expenses of conducting such lottery including the value of the prizes awarded in such lottery;

(b) paying the whole or a part of the remuneration, if any, of the members of the Board and the remuneration of the staff of the Board;

(c) paying the whole or a part of any contributions payable by the Board to any such provident fund as is referred to in subsection (3) of section 6;

(d) repaying the whole or a part of any loan granted to the Board under section 10; and

(e) meeting other liabilities of the Board.

(3) The Board shall pay to the Consolidated Fund through the Secretary to the Ministry of the Minister, the proceeds of every national lottery conducted on behalf of the Board under an agreement entered into under subsection (2) of section 14, after a deduction from such proceeds, the value of the prizes awarded in such national lottery and of any management fees payable, under the terms of that agreement, to the person conducting such national lottery and of an amount approved by the Secretary as being an amount necessary for the purposes of meeting any payments and liabilities referred to in paragraphs (b), (c), (d) and (e) of subsection (2).

[S 17(3) ins by s 7(4) of Act 22 of 1998.]

(4) All prizes in a national lottery which have been forfeited and paid to the Fund of the Board, under section 16, shall be credited by the Board to the Consolidated Fund.

[S 17(4) ins by s 7(4) of Act 22 of 1998.]

18. …

[S 18 rep by s 8 of Act 22 of 1998.]

19. Application of Lotteries Ordinance.

The Lotteries Ordinance shall not apply to or in relation to any National Lottery Ordinance conducted by the Board under this Part of this Act.

[S 19 subs by s 7 of Act 35 of 1997.]

20. Rules.

(1) The Board may make rules in respect of all matters stated or authorised by this Part of this Act to be prescribed, or in respect of which rules are authorised to be so made by this Part of this Act.

(2) Without prejudice to the provisions of subsection (1) of this section, rules made under this section may make provision in respect of all or any of the following matters—

(a) the price at which tickets in every national lottery, conducted by the Board, otherwise than under an agreement entered into under subsection (2) of section 14, are to be sold;

[S 20(2)(a) am by s 8 of Act 35 of 1997.]

(b) the particulars to be stated on every such ticket;

(c) the manner in which tickets in every such lottery are to be sold or offered for sale;

(d) the employment of agents for the sale of such tickets and the remuneration payable to such agents;

(e) the publication of the number of each winning ticket in every such lottery and of the name and address of the person entitled to such ticket; and

(f) all other matters relating to national lotteries.

(3) No rule made by the Board under this section shall have effect until it has been approved by the Minister. Every rule so made and approved, other than any rule relating to any of the matters referred to in section 12, shall be published in the Gazette as soon as it may be convenient.

21. Offences.

(1) Every person who—

(a) sells or offers for sale any ticket for the purposes of any national lottery at a price exceeding the price specified for such ticket by rule made under this Part of this Act; or

(b) forges any ticket for the purposes of any such lottery; or

(c) sells or offers for sale any ticket for the purposes of any such lottery knowing it to be forged, shall be guilty of an offence and shall, on conviction after summary trial before a Magistrate, be liable to a fine not exceeding five hundred rupees or to imprisonment of either description for a term not exceeding six months or to both such fine and imprisonment.

(2) All sums paid or recovered as fines imposed for offences under this section shall be paid to the Fund of the Board.

22. Offences to be cognizable offences.

All offences under this Part of this Act shall be cognizable offences within the meaning and for the purposes of the Criminal Procedure Code.

23. Interpretation.

In this Part of this Act, unless the context otherwise requires—

“financial year” means the period commencing on January 1 in any year and ending on December 31 of that year;

[Subs by s 8(1) of Act 22 of 1998.]

“General Treasury” means the Department of Government known as the General Treasury;

“Hospitals Lotteries Board” means the Hospitals Lotteries Board established under the repealed Hospitals Lotteries Act;

“Minister” means the Minister to whom the subject of Finance has been assigned;

[Subs by s 8(2) of Act 22 of 1998.]

“prescribed” means prescribed by rule made under this Part of this Act.

“Public Corporation” means any Corporation, Board or other body which was or is established by or under any written law other than the Companies Act, No. 17 of 1982, with funds or capital wholly or partly provided by the Government, by way of grant, loan or otherwise.”

[Ins by s 9(3) of Act 35 of 1997.]

24. Repeal of the Hospital Lottories Act.

The Hospitals Lotteries Act is hereby repealed.

25. Transitory provisions.

On the appointed date—

(a) all the movable and immovable properties of the Hospitals Lotteries Board on the day immediately prior to the appointed date (including money in the Fund of that Board) shall be deemed to vest in, and to be the properties of, the National Lotteries Board;

(b) all the contracts of the Hospitals Lotteries Board subsisting on that day shall be deemed to be the contracts of the National Lotteries Board, and all subsisting rights and obligations of the Hospitals Lotteries Board under such contracts shall be deemed to be the rights and obligations of the National Lotteries Board;

(c) the liabilities of the Hospitals Lotteries Board on that day shall be deemed to be the liabilities of the National Lotteries Board;

(d) the Hospitals Fund maintained at the General Treasury under the repealed Hospitals Lotteries Act shall cease to be so maintained, and all sums of money lying to the credit of such Hospitals Fund shall be transferred to the Consolidated Fund by the Deputy Secretary to the Treasury; and

(e) the provident fund established and maintained by the Hospitals Lotteries Board for its officers and servants under the repealed Hospitals Lotteries Act shall be deemed to be a provident fund established and maintained by the National Lotteries Board for its officers and servants under this Part of this Act.

26. Transfer of officers and servants.

On the appointed date, all officers and servants of the Hospitals Lotteries Board on the day immediately prior to that date shall be deemed to be transferred to the service, and to be officers and servants, of the National Lotteries Board.

2PART II

[Part II rep by s 5 of Act 10 of 1965.]

PART III

Amendments to the Pawnbrokers Ordinance, Money Lending Ordinance, Marriage Registration Ordinance, Insurance Corporation Act, No. 2 of 1961, and Registration of Documents Ordinance

47. Amendments to the Pawnbrokers Ordinance.

(1) The Pawnbrokers Ordinance is hereby amended as follows—

(a) by the insertion in Part II of that Ordinance, immediately before section 3 of that Ordinance, of the following new section which shall have effect as section 2A of that Ordinance:

“2A. Certain persons prohibited from carrying on business of a pawnbroker.

On or after the first day of January, 1964, no person shall carry on the business of a pawnbroker if such person—

(i) is an individual who is not a citizen of Ceylon; or

(ii) is a foreign company; or

(iii) is a foreign firm,

and accordingly any licence to carry on such business which was issued to any such individual, foreign company or foreign firm and was in force on the day immediately prior to the said first day of January shall, on and after the said first day of January, be deemed for all purposes, to be null and void.”;

(b) by the repeal of section 7 of that Ordinance (replaced by Act No. 55 of 1956) and the substitution therefor of the following new section:

“7. Issue of licences to certain persons prohibited.

On or after the first day of January, 1964, no licence for carrying on the business of a pawnbroker shall be issued to any person who is prohibited from carrying on such business by virtue of the operation of the provisions of section 2A, and accordingly any such licence issued to any such person, whether by inadvertence or otherwise, shall be deemed for all purposes, to be null and void.”;

(c) by the insertion, immediately after section 46B of that Ordinance (inserted by Act No. 55 of 1956), of the following new section:

“46C. Burden of proof.

For the purposes of the issue to any person of any licence for carrying on the business of a pawnbroker, or of any prosecution instituted against any person for any offence under this Ordinance, the burden of proving that such person is a citizen of Ceylon, or is not a foreign company or foreign firm, shall lie on such person.”; and

(d) in section 47 of that Ordinance by the insertion, immediately after the definition of—

(i) “Appointed date”, of the new definition:

‘“Citizen of Ceylon” means any individual who is a citizen of Ceylon under any law for the time being in force relating to such citizenship’; and

(ii) “District”, of the following new definitions—

“Foreign company” means a company to which Part XI of the Companies Ordinance applies;

“Foreign firm” means a firm—

(a) consisting of two partners one of whom is not a citizen of Ceylon, or both of whom are not such citizens; or

(b) consisting of more than two partners at least one of whom is not a citizen of Ceylon.

(2) Where any person was, on the thirty-first day of December, 1963, carrying on business as a pawnbroker under the authority of a licence issued to him under the Pawnbrokers Ordinance but is prohibited from carrying on such business after that day by virtue of the operation of that Ordinance as amended by subsection (1) of this section, then, notwithstanding anything in that Ordinance as so amended, any right, liability, action, proceeding or thing, acquired or incurred or pending by or against such person on or before that day in his capacity as such pawnbroker may, after that day, be enforced or carried on or completed as though such person was not so prohibited from carrying on such business.

48. Amendments to the Money Lending Ordinance.

(1) The Money Lending Ordinance is hereby amended as follows—

(a) in the long title of that Ordinance, by the substitution, for the expression “Money-Lending Transactions”, of the expression “Money-Lending Transactions, and the Prohibition of the carrying on of the Business of Money Lending by Certain Persons”;

(b) by the insertion, immediately after section 1 of that Ordinance, of the following new sections which shall have effect as section 1A and section 1B of that Ordinance—

1A. Prohibition of the carrying on the business of money lending by certain persons.

(1) On or after the first day of January, 1964, no person shall carry on the business of money lending if such person—

(a) is an individual who is not a citizen of Ceylon; or

(b) is a foreign company; or

(c) is a foreign firm:

Provided, however, that the preceding provisions of this subsection shall not apply to any foreign firm or foreign company approved for the purpose of this subsection by the Minister of Finance by Order published in the Gazette.

(2) Any person who contravenes the provisions of subsection (1) shall be guilty of an offence and shall, on conviction after summary trial before a Magistrate, be liable to a fine not exceeding one thousand rupees or to imprisonment of either description for a term not exceeding six months, or to both such fine and imprisonment.

(3) In any prosecution of any person for an offence under this section, the burden of proving that such person is a citizen of Ceylon, or is not a foreign company or foreign firm, shall lie on such person.

(4) In this section—

(a) “citizen of Ceylon” means any individual who is a citizen of Ceylon under any law for the time being in force relating to such citizenship;

(b) “foreign company” means a company to which Part XI of the Companies Ordinance applies, other than any commercial Bank within the meaning of the Monetary Law Act or any life insurance company; and

(c) “foreign firm” means a firm—

(i) consisting of two partners one of whom is not a citizen of Ceylon, or both of whom are not such citizens; or

(ii) consisting of more than two partners at least one of whom is not a citizen of Ceylon.

1B. Prohibition of suit or other proceedings in respect of money lent in certain circumstances.

No suit or other proceedings shall be instituted or maintained in any court in respect of any money lent if such money was lent on or after the first day of January 1964, by any person carrying on the business of money lending in contravention of the provisions of subsection (1) of section 1A.

(2) Where any person was, on the thirty-first day of December, 1963, carrying on the business of money lending but is prohibited from carrying on such business after that day by virtue of the operation of the Money Lending Ordinance as amended by subsection (1) of this section, then, notwithstanding anything in that Ordinance as so amended, any right, liability, action, proceeding or thing, acquired or incurred or pending by or against such person on or before that day in his capacity as such money lender may, after that day, be enforced or carried on or completed as though such person was not so prohibited from carrying on such business.

49. Amendments to the Marriage Registration Ordinance.

(1) The Marriage Registration Ordinance is hereby amended as follows:

(a) in section 34 of that Ordinance—

(i) by the substitution in subsection (5) of that section, for the expression “was solemnised”, of the expression “was solemnised together with stamps of a value equal to the amount of the fee payable to such Registrar for the registration of such marriage.”,

(ii) by the substitution in subsection (6) of that section, for the expression “duplicate statement”, of the expression “duplicate statement together with stamps equal in value to the amount of the fee payable to such Registrar for the registration of the marriage,”, and

(iii) by the insertion, at the end of that section, of the following new subsection:

“(8) A Minister shall refuse to solemnise a marriage until the parties thereto have paid to him, for transmission to the District Registrar, the fee payable to such Registrar for the registration of the marriage.”;

(b) in section 62 of that Ordinance, by the substitution in subsection (1) of that section, for the expression “The fees enumerated”, of the expression “Subject to the provisions of section 34, the fees enumerated”; and

(c) in the Second Schedule to that Ordinance, by the insertion, at the end of that Schedule, of the following new item the particulars of which shall be so inserted in the appropriate columns of that Schedule:

“Do. Registration of marriage solemnised in a registered place of public worship do. 1.50.”

(2) The amendments made in the Marriage Registration Ordinance by subsection (1) of this section shall come into operation on the first day of January, 1964.

50. Amendments to Act, No. 2 of 1961.

(1) The Insurance Corporation Act, No. 2 of 1961, is hereby amended as follows—

(a) in section 7 of that Act, by the substitution, in subsection (3) of that section, for the words “any new business of life”, of the words “any business of”;

(b) by the repeal of section 10 of that Act and the substitution therefor of the following new section:

“10. Corporation to be the sole insurer authorised to transact insurance business in Ceylon on or after January 1, 1964.

(1) On or after the first day of January, 1964, notwithstanding anything in any other law—

(a) the Corporation shall be the sole insurer authorised to transact new business of any class of insurance whatsoever and to issue policies of insurance, in Ceylon; and

(b) no other insurer shall transact any new business of insurance whatsoever, or issue any new policy of insurance, or renew any policy of general insurance, in Ceylon.

(2) Every policy of insurance issued or every policy of general insurance renewed on or after the first day of January 1964, by any insurer other than the Corporation shall be deemed to be invalid and accordingly shall be of no force or effect in law.

(3) No policy of general insurance entered into by or with any insurer other than the Corporation shall be valid or effective beyond such date in the year 1964 as is the expiry date of such policy, or, where the expiry date or such policy is a date beyond December 31, 1964, after
December 31, 1964.

(4) No insurer shall be entitled to compensation for any loss incurred by him, whether directly or indirectly, by reason of the fact that he is unable to transact any new business of insurance, or to issue any new policy of insurance, or to renew any policy of general insurance, by virtue of paragraph (b) of subsection (1).”;

(c) by the repeal of section 15 of that Act;

(d) in section 17 of that Act, by the substitution in subsection (1) of that section, for the word “ten”, of the word “twenty”;

(e) in section 20 of that Act, by the substitution, for the words “and the reinsurance business,”, of the words “and any other class of insurance business,”;

(f) in section 26 of that Act by the omission of the words “and its reinsurance business”; and

(g) by the insertion, immediately after section 33 of that Act, of the following new sections which shall have effect as section 33A and section 33B of that Act:

“33A. Liabilities of the Corporation, including bonuses declared in the case of life insurance policies, guaranteed by the Government.

All liabilities of the Corporation arising out of policies of insurance issued by or taken over by the Corporation, including in the case of life insurance policies the bonuses declared and payable by the Corporation, shall be guaranteed by the Government of Ceylon.

33B. Employment of certain persons in the Corporation.

The Minister shall take steps to offer employment in the Corporation to persons who have been employed under insurers in Ceylon on July 31, 1963, and who have lost their employment due to retrenchment effected by such insurers by reason of such insurers not being able to transact any new business of general insurance on and after January 1, 1964.”

(2) The amendments made in the Insurance Corporation Act, No. 2 of 1961, by subsection (1) of this section shall come into operation on the first day of January, 1964.

51. Amendment of the First Schedule to Registration of Documents Ordinance.

The First Schedule to the Registration of Documents Ordinance is hereby amended, in Part III of that Schedule, as follows—

(a) in item 1, by the substitution, in paragraph (a) of that item, for the figures “1.0”, of the figures “2.0”; and

(b) in item 3, by the substitution, for the figures “0.50”, of the figures “1.0”.

3Part IV

[Part IV rep by s 20 of Act 11 of 2002.]

PART V

Amendments to the Inland Revenue
Act, No 4 of 1963

55. Date of operation of this Part of this Act.

The provisions of this Part of this Act shall come into operation on the appointed date4.

56. Amendment of sections 39 and 42 of Act, No. 4 of 1963.

(1) Section 39 of the Inland Revenue Act, No. 4 of 1963 (hereinafter referred to as the “principal Act”), is hereby amended by the substitution, for subsection (1) of that section, of the following subsection:

“(1) Subject to the other provisions of this Chapter, there shall be charged from every individual, other than an individual referred to in section 28, a tax which is hereinafter in this Act referred to as the “gifts tax” in respect of the taxable gifts made by such individual—

(a) at the rate or rates specified in the Fourth Schedule to this Act, for the year of assessment commencing on April 1, 1963;

(b) at the rate or rates specified in the Fifth Schedule to this Act, for the year of assessment commencing on April 1, 1964; and

(c) at the rate or rates specified in the Sixth Schedule to this Act, for every year of assessment commencing on or after April 1, 1965.”

(2) Section 42 of the principal Act is hereby amended as follows—

(a) in subsection (2) of that section, by the substitution, for the words “shall be computed”, of the words “shall be computed by the application of the appropriate rates of gifts tax.”; and

(b) by the addition, at the end of that section, of the following new subsection:

“(3) In the computation of the gifts tax payable by any individual for any year of assessment the rate or rates of gifts tax which shall be applicable in respect of the gifts made in the year preceding that year of assessment shall be the rate or rates which would have been applicable if those gifts and the gifts made previously by that individual had been aggregated for the year of assessment.”

57. Addition of new Schedules to the principal Act.

The following new Schedules are hereby added immediately after the Fourth Schedule to the principal Act and shall have effect as the Fifth and Sixth Schedules to the principal Act:

“Sixth Schedule

For gifts made during the year preceding any year of assessment commencing on or after April 1, 1965, the gifts tax shall be at the same rate or rates specified in Part II of the Fifth Schedule.”

5PART VI

[Part VI rep by s 19 of Act 38 of 2014.]

 

PART VII

Amendments to the Monetary Law Act and the Peoples’ Bank Act, No 29 of 1961

67. Insertion of new Part IIIA in Chapter V of the Monetary Law Act.

The following new Part is hereby inserted immediately after Part III, and shall have effect as Part IIIA, of Chapter V of the Monetary Law Act:

“PART IIIA

Medium and Long Term Credit Operations with Credit Institutions

88A. Loans or advances to credit institutions.

(1) With the object of granting financial accommodation to any credit institution in respect of lending operations carried out by such institution for any productive purpose, the Central Bank may, from time to time, grant, out the Fund, any loan or advance to such institution against a promissory note given by such institution subject to and in accordance with the following conditions:

(a) that the loan or advance is repayable within such period not exceeding fifteen years as may be determined by the Bank;

(b) that the repayment to the Central Bank of the loan or advance is secured by the assignment to the Bank by way of pledge—

(i) of debts owing to such institution by its borrowers in respect of such purpose or purposes, and

(ii) of mortgages given as security for the payment of such debts to such institution; and

(c) such other conditions including the rate of interest to be charged by the Bank on such loan or advance, as may be determined by the Monetary Board.

Such assignment is in this Part of this Act referred to as an “assignment by way of pledge”.

(2) The Monetary Board may prescribe the conditions subject to which loans or advances will be available out of the Fund to credit institutions, including conditions relating to the rates of interest charged by such institutions, to the purposes for which their loans in general are destined, and to any other matters affecting or connected with the credit policy of such institutions.

(3) An assignment by way of pledge to the Central Bank under this Part of this Act shall be effected by an instrument which shall be substantially in the following Form:

Form of Assignment by way of pledge to the Central Bank of Ceylon under section 88A of the Monetary Law Act.

We........ in terms of section 88A of the Monetary Law Act, do hereby assign to the Central Bank of Ceylon by way of pledge, the debts owing to us, particulars whereof are set forth in the Schedule hereto, and our rights as mortgagees under the mortgages mentioned in the Schedule hereto, as security or further security for the repayment to the Central Bank of Ceylon for a *loan and advance of Rs granted to us by the Bank repayable........ with interest-at ........% per annum.

* Delete whichever is inapplicable.

SCHEDULE

Amount of Borrower’s Mortgage Date Notary Debt Name and Bond No, Address

(4) The Central Bank shall, on the execution of an assignment by way of pledge under this Part of this Act, have a first charge on the debts and rights assigned.

(5) The provisions of this Part of this Act shall have effect notwithstanding anything to the contrary in any other provisions of this Act.

88B. Instrument of assignment by way of pledge to the Central Bank to be free of stamp duty.

No duty shall be chargeable or payable under the Stamp Ordinance on or in respect of any instrument of assignment by way of pledge to the Central Bank under this Part of this Act, and accordingly, for the purposes of that Ordinance, such instrument shall be deemed to be exempt from such duty.

88C. Instrument of assignment by way of pledge to the Central Bank need not be registered under the Registration of Documents Ordinance.

No instrument of assignment by way of pledge to the Central Bank under this Part of this Act shall require registration under the Registration of Documents Ordinance, and accordingly any such instrument shall be deemed not to be void by reason only of its not being so registered.

88D. Notarial execution not required in the case of assignments by way of pledge.

No assignment by way of pledge shall require execution before a licensed notary public and witnesses as provided by section 2 of the Prevention of Frauds Ordinance, and accordingly any such assignment shall be deemed not to be void by reason only of its not being so executed.

88E. Medium and Long Term Credit Fund.

(1) The Central Bank may establish, maintain, manage, and control, at the Bank, a Fund to be called the Medium and Long Term Credit Fund (in this Part of this Act referred to as the “Fund”).

(2) The Monetary Board may, from time to time, transfer to the Fund, out of the reserves of the Bank, such sums of money as it may deem necessary to enable the Bank to discharge its functions under this Part of this Act.

(3) The Central Bank shall pay out of the Fund—

(a) the amounts of all loans and advances granted by the Bank to credit institutions under this Part of this Act;

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