NATIONAL GEM AND JEWELLERY AUTHORITY ACT

Arrangement of Sections

1. Short title.

PART I

Establishment of the National Gem and Jewellery Authority

2. Establishment of the National Gem and Jewellery Authority.

3. Constitution of the Authority.

4. Disqualification from being a member.

5. Term of Office of appointed members.

6. Removal and resignation of appointed members.

7. Remuneration of members.

8. Chairman of the Board.

9. Meeting of the Board.

10. Acts not invalidated by reason of a vacancy.

11. Seal of the Authority.

12. Authority to exercise its powers under the directions of the Minister.

13. Delegation of powers and function of the Board.

14. Powers and functions of the Authority.

15. Authority to issue licence.

16. Authority to approve export of gems.

17. Registration with the Authority.

18. Royalty to be paid in lieu of gems that may be found.

PART II

Finance and Staff of the Authority

19. Capital of the Authority.

20. Fund of the Authority.

21. Financial year and audit of accounts.

22. Investment of moneys of the Authority.

23. Director-General of the Authority.

24. Appointment of public officers to the staff of the Authority.

PART III

Establishment of Institutions

25. Incorporation Orders for establishment of Institutions.

26. Board of Director.

27. Seal of the Institution.

28. Directions of the Minister.

29. Powers and functions of the Board.

30. Capital of the Institution.

31. Liability of the Institution.

32. Financial year and the audit of the Institution.

33. Appointment of officers, servants and agents.

34. State property both movable and immovable to be made available to the Institution.

35. Members, Officers and Servants of the institution deemed to be Public Servants.

36. No writ to issue against person or property of a member of the Institution.

37. Institution deemed to be a Scheduled Institution within the meaning of the Bribery Act.

38. Regulations.

PART IV

General

39. Authority to be a Scheduled Institution within the meaning of the Bribery Act.

40. Members, Officers and servants of the Authority deemed to be public servants.

41. State property both movable and immovable to be made available to the Authority.

42. Acquisition of immovable property under the Land Acquisition Act.

43. Protection for action taken under this Act or on the, direction of the Authority.

44. No writ against person or property of a member of the Authority.

45. Powers at the Authority to make rules.

46. Description.

47. Power of Authority to authorise any officer to enter and inspect premises.

48. Powers at inspection and search.

49. Power to seize articles.

50. Procedure in respect of article seized.

51. Offences.

52. Compounding of offences.

53. Regulations.

54. Repeal and savings.

55. Interpretation.

56. Sinhala text to prevail in case of Inconsistency.

SCHEDULE

50 of 1993.

AN ACT to establish the National Gem and Jewellery Authority for the development, regulation and promotion of the gem industry and the jewellery industry; to provide for the establishment of institutions to promote such development, for the repeal of the state gem corporation Act, No. 13 of 1971; and for matters connected therewith or incidental thereto.

[Date of Commencement: 21st October, 1993]

1. Short title.

(1) This Act may be cited as the National Gem and Jewellery Authority Act.

(2) —

(a) The provisions of this section, and section 55 and 56 and Part III of this Act shall come into operation on the date of enactment of this Act.

(b) The Provisions of Parts I, II and IV (other than sections 55 or 56) shall come into operation on such date (hereinafter referred to as "appointed date”) as the Minister may appoint by Order published in the Gazette.

PART I

Establishment of the National Gem And Jewellery Authority

2. Establishment of the National Gem and Jewellery Authority.

(1) There shall be established an Authority which shall be called the National Gem and Jewellery Authority (in this Act referred to as the "Authority”).

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

3. Constitution of the Authority.

The administration and management of the affairs of the Authority shall be vested in a Board of Directors, (hereinafter in this Part referred to as the "Board”) consisting of the Chairman and the following members—

(a) the Secretary to the Ministry of the Minister in charge of the subject of Finance or any senior officer of that Ministry nominated by the Minister;

(b) the Chairman of the Sri Lanka Export Development Board established by the Sri Lanka Export Development Act, No. 40 of 1979;

(c) a senior officer of the Central Bank nominated by the Monetary Board;

(d) the Chairman of the Gem Trading Bank;

(e) the Chairman of the Institutions established under this Act;

(f) the Director-General of the Department of Customs or any senior officer of the Department nominated by the Minister;

(g) a senior officer of the Ministry of the Minister in charge of the subject of Industries nominated by the Minister;

(h) five other members appointed by the Minister (hereinafter referred to as "appointed members”) who appear to the Minister to have wide experience, capacity and recognition in matters connected with mineralogy, geology, mining, lapidary or the manufacture, sale and export of gems and jewellery.

4. Disqualification from being a member.

A person shall be disqualified from being appointed or continuing as a member of the Board—

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

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

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

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

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

(f) if he has any financial or other interest as is likely, to affect prejudicially the discharge by him of his functions as a member of the Board.

5. Term of Office of appointed members.

Every appointed member unless he vacates office earlier by death, resignation or removal, hold office for a term of three years from the date of his appointment and shall unless he has been removed from office, be eligible for re-appointment.

6. Removal and resignation of appointed members.

(1) The Minister may by Order published in the Gazette remove any appointed member from office without assigning any reason therefor. A member in respect of whom an Order is made under this section shall be deemed to have vacated office on the date of publication of the Order in the Gazette.

(2) In the event of the vacation of office by death, resignation or removal of any appointed member, the Minister may having regard to the provisions of section 3, appoint any other person to succeed such member, any member so appointed shall hold office for the unexpired term of office of the member whom he succeeds.

(3) Any appointed member, may at any time resign from office by letter to that effect addressed to the Minister and sent by registered post.

(4) Where an appointed member, by reason of illness, infirmity or absence from Sri Lanka for a period of not less than three months, is temporarily unable to perform his duties it shall be the duty of such member to inform the Minister in writing of such inability. Thereupon, the Minister may having regard to the provisions of section 3 appoint some other person to act in his place.

7. Remuneration of members.

The members of the Board may be paid such remuneration out of the Fund of the Authority as the Minister may, determine in consultation with the Minister in charge of the subject of Finance.

8. Chairman of the Board.

(1) The Chairman of the Board shall be appointed by the Minister.

(2) If the Chairman is, by reason of illness or absence from Sri Lanka, temporarily unable to perform the duties of his office, the Minister may appoint another person to act in his place.

(3) The Minister may, for reasons assigned, terminate the appointment of the Chairman.

(4) The Chairman may at any time resign from the office of Chairman by a letter addressed to the Minister. Such resignation shall take effect upon it being accepted by the Minister in writing.

(5) Subject to the provisions of subsections (3) and (4), the term of office of the Chairman shall be three years.

(6) The Chairman shall be the Chief Executive Officer of the Authority, and shall subject to the direction and control of the Board, be charged with the administration and management of the affairs of the Authority.

9. Meeting of the Board.

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

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

(3) The Chairman or the member presiding at any meeting of the Board, shall in addition to his own vote, have a casting vote.

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

10. Acts not invalidated by reason of a vacancy.

No act, decision or proceeding of the Board shall be deemed to be invalid by reason only of the existence of any vacancy in the Board or any defect in the appointment of any member thereof.

11. Seal of the Authority.

(1) The seal of the Authority may be determined and devised by the Board, and may be altered in such manner as may be determined by the Board.

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

(3) The seal of the Authority shall not be affixed to any instrument or document except with the sanction of the Board and in the presence of the Chairman and one member who shall sign the instrument or document in token of their presence.

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

12. Authority to exercise its powers under the directions of the Minister.

In the exercise of its powers and the discharge of the functions, the Authority shall comply with the general policy of the Government in relation to the gem industry and with any general or special directions issued to it by the Minister in relation to such policy.

13. Delegation of powers and function of the Board.

(1) The Board may delegate any of the powers and functions of the Authority to the Chairman.

(2) The Chairman to whom any of the powers and functions of the Authority have been delegated under subsection (3) shall exercise or discharge such powers and functions so delegated, subject to the special or general directions of the Board.

14. Powers and functions of the Authority.

(1) The functions of the Authority shall be—

(a) to promote and develop the gem industry and the jewellery industry;

(b) to initiate and implement schemes for the promotion and development of the gem industry and the jewellery industry;

(c) to exploit the market for gems and jewellery whether in or outside Sri Lanka and to promote the demand for such gems and jewellery in world markets;

(d) to promote and sponsor technical training of personnel on every aspect relating to the gem industry and the jewellery industry and especially on heat treatment and gem cutting, with a view to developing such industries;

(e) to take such steps that are necessary to generate confidence in the gem industry and the jewellery industry among prospective buyers;

(f) to prevent unlawful gemming and the unlawful removal of gems from Sri Lanka;

(g) subject to the provisions of Article 33 of the Constitution to act as the sole authority responsible for the alienation of the right to mine for gems in or over State land, or in or over land disposed of by the State or the State Gem Corporation where the mining or gemming rights remain with the State, whether by reason of any reservation or otherwise:

Provided however, every such alienation shall be with the concurrence of the Minister in charge of the subject of Lands and of the Minister in charge of the subject of Environment, and where the land to which such rights relate is in the possession of the Mahaweli Authority, with the concurrence also of the Minister in charge of the subject of Mahaweli Development:

Provided further, that where there is disagreement amongst such Ministers as regards an alienation, the matter shall be referred to the Cabinet of Ministers, and thereafter, such alienation shall be with the concurrence of the Cabinet of Ministers;

(h) to provide technical and other advice and the infrastructural support necessary for the marketing of gems and jewellery;

(i) the administration of any scheduled written law in so far only—

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