LOCAL TREASURY BillS ORDINANCE

Arrangement of Sections

1. Short title.

2. Power to borrow by the issue of Treasury Bills.

3. Principal of Bills.

4. Proceeds of Bills.

5. Amounts and period of currency of Bills.

6. Repayment of Bills.

7. Treasury Bills other than Scripless Treasury Bills.

7A. Central Bank to supervise or to monitor the transactions of primary dealers and non dealer bidders.

7B. Issue of Scripless Treasury Bills.

7C. Conversion of Treasury Bills issued in the form of written certificates.

8. Issue trading and maintenance of records of Scripless Treasury Bills.

9. Direct participants.

10. Dealers direct participant.

11. Transfer of Scripless Treasury Bills.

12. Power of Central Bank exercised officers.

13. Protection of action.

14. Offences of.

15. Offences of Directors and officers.

15A. Transactions in Scripless Securities.

15B. Compounding of offences.

16. Regulation.

17. Interpretation.

8 of 1923,

35 of 1953,

35 of 1992,

31 of 1995,

1 of 2004.

AN ORDINANCE to provide for the borrowing of money by the issue of Treasury Bills in Sri Lanka.

[Date of Commencement: 31st July, 1923]

1. Short title.

This Ordinance may be cited as the Local Treasury Bills Ordinance.

2. Power to borrow by the issue of Treasury Bills.

(1) The Minister in charge of the subject of Finance whenever authorised thereto by a resolution of Parliament may direct the Deputy Secretary to the Treasury to borrow by the issue in Sri Lanka of Sri Lanka Government Treasury Bills, sums not exceeding the amount specified in such resolution; and the Deputy Secretary to the Treasury may also, with the approval of the Minister in charge of the subject of Finance, borrow from time to time by the issue of such Treasury Bills, such sums as may be required to pay off at maturity, Bills already lawfully issued by him and outstanding.

(2) All acts or things necessary for the purpose of, and in connection with, the issue and repayment of Treasury Bills under this Ordinance shall be done on behalf of the Deputy Secretary to the Treasury by the Central Bank.

[S 2(2) subs by s 2of Act 31 of 1995.]

(3) Treasury Bills may be issued either as Bills in the form of written certificates or as Scripless Treasury Bills.

[S 2(3) ins by s 2 of Act 31 of 1995.]

(4) Any application or bids for the purchase of Treasury Bills may having regard to the interests of the national economy be restricted to primary dealers and designated non-dealer bidders.

[S 2(4) ins by s 2 of Act 31 of 1995.]

3. Principal of Bills.

The principal money represented by the Treasury Bills issued under the provisions of this Ordinance are hereby charged upon and shall be payable out of the Consolidated Fund and assets of Sri Lanka.

4. Proceeds of Bills.

The proceeds of the issue of the Treasury Bills shall be paid into the Treasury.

5. Amounts and period of currency of Bills.

Every Treasury Bill issued under this Ordinance shall be for the sum of one thousand rupees or a multiple of one thousand rupees and shall be payable at par at such time or times as the Minister in charge of the subject of Finance shall before the issue of such Treasury Bills fix and determine but not later than one year from the date of issue.

[S 5 am by s 3; of Act 31 of 1995 of Act 35 of 1992.]

6. Repayment of Bills.

There shall be appropriated out of the Consolidated Fund the necessary sum to pay the principal represented by the Treasury Bills, and the Deputy Secretary to the Treasury shall pay the said principal when the Treasury Bills fall due;

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

[S 6 am by s 2 of Act 1 of 2004.]

7. Treasury Bills other than Scripless Treasury Bills.

(1) Every Treasury Bill issued under this Ordinance, other than Scripless Treasury Bill, shall bear the signature in feasible of the Deputy Secretary to the Treasury.

(2) Title to every Treasury Bill, other than a Scripless Treasury Bill shall be transferable by endorsement and delivery of the Bill.

(3) With respect to every Treasury Bill other than a Scripless Treasury Bill—

(a) no endorsement of the Treasury Bill shall be valid unless made by the signature of the holder written on the reverse of the Bill in one of the spaces provided for that purpose, or in a separate assignment or other instrument attached thereto which is in a form prescribed by regulation and issued by the Central Bank;

(b) a person shall not, by reason only of his having endorsed or endorsed and delivered a Treasury Bill be liable to pay any money due thereon.

[S 7 subs by s 4 of Act 31 of 1995.]

7A. Central Bank to supervise or to monitor the transactions of primary dealers and non dealer bidders.

Without prejudice to anything contained in this Ordinance particularly the provisions of sections 8, 9, 10 and 11, the Central Bank shall regulate, supervise and monitor the primary dealers and the designated non dealer bidders with respect to their transactions in Treasury Bills issued in the form of written certificates.

[S 7A ins by s 3 of Act 1 of 2004.]

7B. Issue of Scripless Treasury Bills.

The Minister may, by notification published in the Gazette and in two local newspapers in Sinhala, Tamil and English, notify the public of a day, from which, Treasury Bills may be issued in the form of Scripless Treasury Bills.

[S 7B ins by s 3 of Act 1 of 2004.]

7C. Conversion of Treasury Bills issued in the form of written certificates.

(1) The Central Bank may by notification published in the Gazette and in two local newspapers in Sinhala, Tamil and English, require the holders of Treasury Bills issued in the form of written certificates having a specified date of maturity, if they so desire, to surrender such Bills for conversion into Scripless Treasury Bills in accordance with such procedure as may be prescribed. Such Treasury Bills shall upon conversion into Scripless Treasury Bills be deemed to be Scripless Treasury Bills issued under this Ordinance.

(2) Nothing contained in subsection (1) shall be construed as affecting or discharging the liability of the Government under this Ordinance in respect of a Treasury Bill which is not converted into a Scripless Treasury Bill as provided for in subsection (1).

[S 7C ins by s 3 of Act 1 of 2004.]

8. Issue trading and maintenance of records of Scripless Treasury Bills.

(1) The Central Bank shall have the authority to take any section necessary for the issue and trading of Scripless Treasury Bills in accordance with the provisions of this Ordinance. Without limiting the generality of the foregoing, the Central Bank shall have the authority to undertake and carry out the following—

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