NATIONAL MEDICINES REGULATORY AUTHORITY ACT

Arrangement of Sections

1. Short title.

CHAPTER I

NATIONAL MEDICINES REGULATORY AUTHORITY

PART I

ESTABLISHMENT OF THE AUTHORITY

2. Establishment of the National Medicines Regulatory Authority.

3. Objects of the Authority.

4. Constitution of the Authority.

5. Chairman of the Authority.

6. Conflict of interests of the members.

7. Disqualifications to be a member.

8. Ex-officio members.

9. Provisions relating to appointed members.

10. Meetings of the Authority.

11. The Seal.

12. Authority to invite experts to meetings.

13. Remuneration for attending meetings of the Authority.

14. Powers and functions of the Authority.

PART II

APPOINTMENT OF CHIEF EXECUTIVE OFFICER AND STAFF OF THE AUTHORITY

15. Appointment of the Chief Executive Officer of the Authority.

16. Staff of the Authority.

17. Public officers to be appointed to the Staff of the Authority.

PART III

FINANCE

18. Fund of the Authority.

19. Authority to maintain accounts.

20. Financial year and audit of accounts.

21. Investment of funds.

22. Borrowing powers of the Authority.

PART IV

GENERAL

23. Annual Report.

24. Declaration of secrecy.

25. Delegation of powers of the Authority.

26. Directions by the Minister.

27. Officers and employees of the Authority deemed to be public officers.

28. Authority deemed to be a Scheduled institution.

29. Expenses in suit or prosecution to be paid out of the Fund.

CHAPTER II

NATIONAL ADVISORY COMMITTEE AND DIVISIONS OF THE AUTHORITY

PART I

ESTABLISHMENT OF NATIONAL ADVISORY COMMITTEE AND DIVISIONS

30. Establishment of National Advisory Committee and divisions.

PART II

NATIONAL ADVISORY COMMITTEE

31. Constitution of the National Advisory Committee.

32. Chairman, of the National Advisory Committee.

33. Remuneration of the members of the National Advisory Committee.

34. Appointment of officers, employees.

35. Functions of the National Advisory Committee.

36. Regulations.

37. Application of certain provisions of this Act in relation to National Advisory Committee.

PART III

NATIONAL MEDICINES QUALITY ASSURANCE LABORATORY

38. Establishment of the National Medicines Quality Assurance Laboratory.

39. Functions of NMQAL.

40. Regulations.

CHAPTER III

REGULATION AND CONTROL OF ALL ASPECTS PERTAINING TO MEDICINES

PART I

MEDICINES REGULATORY DIVISION

41. Medicines Regulatory Division.

42. Functions of the MR Division.

PART II

MEDICINES EVALUATION

43. Medicines Evaluation Committee.

44. Constitution of the MEC.

45. Panel of Experts.

46. Declaration of secrecy.

47. Authority to give general guidelines for the evaluation.

48. Application of certain provisions of this Act in relation to MEC.

PART III

OFFENCES PERTAINING TO MEDICINE

49. Regulation of manufacture, importation, sale and distribution of medicine.

50. Labelling, to be in conformity with the prescribed standards.

51. Sale of prescribed medicine is prohibited unless premises and process of manufacture have been approved.

52. Sale of prescribed medicine prohibited unless the batch from which such medicine is taken approved as reliable.

53. Sale, of prohibited medicine.

54. Possession of prohibited medicine.

55. Advertising, importation, sale and distribution of medicine as treatment for prescribed diseases prohibited.

56. Generic name of a medicine to be written in the prescription.

57. Contravention of the provisions of this Part to be an offence.

PART IV

REGISTRATION AND LICENSING OF MEDICINES

58. Requirement to register, of medicines.

59. Application for Registration of a medicine.

60. Registration of medicines.

61. Refusal of Registration.

62. Issuing of certificate of registration.

63. Issuing of licence.

64. Renewal.

65. Cancellation or suspension of registration and licence.

CHAPTER IV

REGULATION AND CONTROL OF ALL ASPECTS PERTAINING TO MEDICAL DEVICES

PART I

MEDICAL DEVICES REGULATORY DIVISION

66. Medical Devices Regulatory Division.

67. Functions of the MDR Division.

PART II

MEDICAL DEVICES EVALUATION

68. Medical Devices Evaluation Committee.

69. Constitution of the MDEC.

70. Panel of Experts.

71. Declaration of secrecy.

72. Authority to give general guidelines for the evaluation.

73. Application of certain provisions of this Act in relation to MDEC.

PART III

OFFENCES PERTAINING TO THE MEDICAL DEVICES

74. Prohibition of importation, of medical devices other than the listed.

75. Regulation of manufacture, importation, sale and distribution of medical devices.

76. Prohibition of manufacturing, importation, assembling, sale and distribution, of medical devices.

77. Labelling, packaging and advertising of medical device.

78. Prescribed standards of a medical device to be maintained.

79. Advertising, importation, sale and distribution of medical devices as a treatment for prescribed diseases prohibited.

80. Possession of prohibited medical devices.

81. Contravention of the provisions of this Part to be an offence.

PART IV

REGISTRATION AND LICENSING OF MEDICAL DEVICES

82. Requirement to register, of medical devices.

83. Application for Registration of a Medical device.

84. Registration of medical devices.

85. Refusal of Registration.

86. Application of the provisions of sections 62, 63, 64 and 65.

CHAPTER V

REGULATION AND CONTROL OF ALL ASPECTS PERTAINING TO BORDERLINE PRODUCTS

PART I

BORDERLINE PRODUCTS REGULATORY DIVISION

87. Borderline Products Regulatory Division.

88. Functions of the BPR Division.

PART II

BORDERLINE PRODUCTS EVALUATION

89. Borderline Products Evaluation Committee.

90. Constitution of the BPEC.

91. Panel of Experts.

92. Declaration of secrecy.

93. Authority to give general guidelines for the evaluation.

94. Application of certain provisions of this Act in relation to BPEC.

PART III

OFFENCES PERTAINING TO BORDERLINE PRODUCTS

95. Prohibition of importation, of borderline products other than listed.

96. Regulation of manufacture, importation, sale and distribution of borderline products.

97. Where standard is prescribed for borderline products.

98. Advertising, importation, sale and distribution of borderline products for prescribed diseases prohibited.

99. Possession of prohibited borderline product.

100. Contravention of the provisions of this Part to be an offence.

PART IV

REGISTRATION AND LICENSING OF BORDERLINE PRODUCTS

101. Requirement to register, of borderline products.

102. Application for Registration of a borderline product.

103. Registration of borderline products.

104. Refusal of Registration.

105. Application of the provisions of sections 62, 63, 64 and 65.

CHAPTER VI

COLLECTIVE PROVISIONS PERTAINING TO MEDICINES, MEDICAL DEVICES
AND BORDERLINE PRODUCTS

PART I

COMMON PROVISIONS

106. Prohibition of dishonest dealings.

107. Authority to decide residual shelf-life of medicines.

108. Ban or withdrawal, from, use of medicine.

109. Emergency and other special circumstances.

110. Sale or distribution of samples of medicine, to be prohibited.

111. Permission to import and to accept as a donation of any medicine.

112. Importation, of medicines, for personal use.

113. Licensing of premises for manufacturing, of medicine.

114. Conditions, pertaining to licence.

PART II

REGULATION OF MANUFACTURING OF MEDICINES, MEDICAL DEVICES
AND BORDERLINE PRODUCTS

115. Establishment of the Manufacturing Regulatory Division.

116. Functions of the Manufacturing Regulatory Division.

117. Regulations.

PART III

PRICING OF MEDICINES, MEDICAL DEVICES AND BORDERLINE PRODUCTS

118. Pricing of medicines.

CHAPTER VII

MISCELLANEOUS

PART I

REGULATION OF PHARMACIES

119. Every person to carry on a Pharmacy to obtain a licence.

120. Requirement to comply with Good Pharmacy Practices.

121. Regulations.

PART II

APPEALS

122. Appeals.

123. The Appeals Committee.

PART III

POWERS AND FUNCTIONS OF THE AUTHORIsED OFFICERS

124. Authorised Officers.

125. Powers of Authorised Officers.

126. Procedure in respect of articles and vehicles seized.

127. Authorised Officer to produce before court the part of the sample retained by him.

128. Copy or extract of document taken by an Authorised Officer.

129. Analysis.

PART IV

GENERAL OFFENCES

130. General offences.

131. Punishment for the contravention of the provisions of this Act.

132. Person committing offence to be arrested without a warrant and to be tried by a Magistrate’s Court.

133. Where the accused proves that some other person is guilty of the offence.

134. Defence.

135. Presumptions.

136. Offence committed by body of persons.

PART V

GENERAL

137. Approved Analyst.

138. Report or certificate of the Approved Analyst or an Additional Approved Analyst.

139. Priority for trial and appeal under this Act.

140. Application of other written laws.

PART VI

RULES AND REGULATIONS

141. Rules.

142. Regulations.

143. Institution of proceedings.

PART VII

REPEALS AND TRANSITIONAL PROVISIONS

144. Repeal of Act, No. 27 of 1980.

145. Transitional provisions.

PART VIII

INTERPRETATION

146. Interpretation.

147. In case of an inconsistency the Sinhala text shall prevail.

5 of 2015.

An Act to provide for the establishment of a regulatory authority to be known as the National Medicines Regulatory Authority which shall be responsible for the regulation and control of, registration, licensing, manufacture, importation and all other aspects pertaining to medicines, medical devices, borderline products and for the conducting of clinical trials in a manner compatible with the national medicines policy; to provide for the establishment of divisions of the National Medicines Regulatory Authority including the Medicines Regulatory Division, Medical Devices Regulatory Division, Borderline Products Regulatory Division and Clinical Trials Regulatory Division; to establish a National Advisory Body; to repeal the Cosmetics, Devices and Drugs Act, No. 27 of 1980; and for matters connected therewith or incidental thereto.

[Date of Commencement: 19th March, 2015]

1. Short title.

This Act may be cited as the National Medicines Regulatory Authority Act.

CHAPTER I

NATIONAL MEDICINES REGULATORY AUTHORITY

PART I

ESTABLISHMENT OF THE AUTHORITY

2. Establishment of the National Medicines Regulatory Authority.

(1) There shall be established an authority called the National Medicines Regulatory Authority (hereinafter referred to as the ‘Authority’).

(2) The Authority shall, by the name assigned to it by this section be a body corporate and shall have perpetual succession and a common seal and may sue and be sued in such name.

3. Objects of the Authority.

The objects of the Authority shall be to—

(a) ensure the availability of efficacious, safe and good quality medicines, efficacious, safe and good quality medical devices and efficacious, safe and good quality borderline products to the general public at affordable prices;

(b) function as the central regulator for all matters connected with the registration, licensing, cancellation of registration or licensing, pricing, manufacture, importation, storage, transport, distribution, sale, advertising and disposal of medicines, medical devices and borderline products;

(c) ensure that all activities related to registration, licensing and importation of medicines, medical devices, borderline products and investigational medicinal products are carried out in a transparent, sustainable and equitable manner;

(d) encourage the manufacturing of good quality medicines in Sri Lanka with a view to assuring the availability of essential medicines at affordable prices;

(e) promote the safe and rational use of medicines, medical devices and borderline products by health care professionals and consumers;

(f) recommend appropriate amendments to relevant laws pertaining to medicines, medical devices and borderline products;

(g) educate the general public, health care professionals and all stakeholders on medicines, medical devices and borderline products;

(h) regulate the promotion and marketing of medicines, medical devices and borderline products;

(i) regulate the availability of the medicines, medical devices and borderline products;

(j) conduct post marketing surveillance on quality, safety and adverse reaction of the medicines, medical devices and borderline products; and

(k) regulate all matters pertaining to the conduct of clinical trials in Sri Lanka.

4. Constitution of the Authority.

The Authority shall consist of the following—

(a) ex-officio members—

(i) the Director-General of Health Services;

(ii) the Secretary to the Treasury or his nominee; and

(iii) the Chief Executive Officer of the Authority appointed under section 15 who shall function as the Secretary to the Authority;

(b) following persons who shall be appointed by the Minister, (hereinafter referred to as “appointed members”)—

(i) four specialist clinicians attached to the Ministry of Health, representing the following clinical disciplines, nominated by their respective professional bodies—

(A) General Medicine;

(B) General Surgery;

(C) Pediatrics; and

(D) Gynaecology and Obstetrics;

(ii) a Professor in Pharmacology of any University in Sri Lanka established under the Universities Act, No.16 of 1978, appointed in rotation for every three years, in consultation with the respective Deans of Faculties of Medicine;

(iii) a Professor or Senior Lecturer in Pharmacy of any University in Sri Lanka established under the Universities Act, No.16 of 1978, appointed in rotation for every three years, in consultation with the respective Deans of relevant Faculties;

(iv) four professionals, who have gained eminence in the fields of management, law, accountancy or health respectively.

5. Chairman of the Authority.

(1) The Minister shall, in consultation with the Authority appoint one of the appointed members to be the Chairman of the Authority.

(2) The Chairman may resign from the office of Chairman by letter addressed to the Minister and such resignation shall be effective from the date on which it is accepted by the Minister.

(3) The Minister may for reasons assigned remove the Chairman from the office of Chairman.

(4) Subject to the provisions of subsections (2) and (3), the term of office of the Chairman shall be the period of his membership of the Authority.

(5) Where the Chairman is temporarily unable to perform the duties of his office due to ill health, other infirmity, absence from Sri Lanka or any other cause, the Minister may appoint any other appointed member to act as Chairman in addition to his normal duties as an appointed member.

6. Conflict of interests of the members.

(1) The Minister shall, prior to appointing a person as a member of the Authority, satisfy himself that such person has no financial or other conflict of interest in the affairs of the Authority, as is likely to affect adversely, the discharging of his functions as a member of the Authority.

(2) The Minister shall also satisfy himself, from time to time, that no member of the Authority has since being appointed acquired any such interest.

(3) The person to be appointed as a member of the Authority shall be a person who has not been engaged in any employment or assignment in the pharmaceutical industry within the period of three years immediately prior to such appointment.

(4) No person shall engage in any employment or assignment in the pharmaceutical industry within the period of three years immediately after such person ceased to be a member of the Authority.

(5) —

(a) A member of the Authority who is in any way, directly or indirectly interested in any contract made or proposed to be made by the Authority shall disclose the nature of his interest at a meeting of the Authority; and

(b) Such disclosure shall be recorded in the minutes of the Authority and the member shall not participate in any deliberation or decision of the Authority with regard to that contract.

(6) Minister may make regulations to further specify and give effect to the provisions of this section.

(7) For the purposes of this section—

“a member of the Authority” includes the Chairman, an appointed member and an ex-officio member; and

“conflict of interest” includes any dealing with any company or undertaking which engages in manufacturing, importation, distribution or sale of medicines, medical devices, borderline products or investigational medicinal products.

7. Disqualifications to be a member.

A person shall be disqualified from being appointed or continuing as a member of the Authority, if he—

(a) is or becomes a Member of Parliament, any Provincial Council or of any Local Authority;

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

(c) directly or indirectly holds or enjoys any right or benefit under any contract made by or on behalf of the Authority;

(d) has any financial or other interest as is likely to affect prejudicially the discharge by him of his functions as a member of the Authority;

(e) is absent himself from three consecutive meetings of the Authority;

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

(g) is a person who having been declared as insolvent or bankrupt under any law in force in Sri Lanka or in any other country, is an undischarged insolvent or bankrupt; or

(h) is serving or has served a sentence of imprisonment imposed by any court in Sri Lanka or any other country.

8. Ex-officio members.

Every ex-officio member of the Authority shall hold office so long as such officer holds office by virtue of which such officer has been appointed to the Authority.

9. Provisions relating to appointed members.

(1) Every appointed member of the Authority shall, unless such officer vacates office earlier by death, resignation or removal, hold office for a period of three years, and shall be eligible for re-appointment, unless removed on disciplinary grounds.

(2) The Minister may for reasons assigned remove any appointed member from office.

(3) Any appointed member may resign from office at any time by letter addressed in that behalf to the Minister and such resignation shall take effect upon it being accepted by the Minister.

(4) —

(a) In the event of the death, resignation or removal from office of any appointed member, the Minister may having regard to the provisions of this Act in relation to the appointment of that particular appointed member, appoint another person to act in his place.

(b) The Minister shall appoint the member for the purposes of paragraph (a) within one month of the occurrence of such vacancy.

(c) The member appointed under paragraph (a) shall hold office for the unexpired period of the term of office of the member whom he succeeds.

(5) Where any appointed member is temporarily unable to perform the duties of his office due to ill health or absence from Sri Lanka or for any other reason, the Minister may having regard to the provisions of section 4(b) appoint another person to act in his place.

(6) Subject to the preceding provisions, an appointed member may continue to hold office, after lapse of the period of three years referred to in subsection (1), until he is reappointed or a new member is appointed by the Minister.

10. Meetings of the Authority.

(1) The Chairman shall preside at every meeting of the Authority. Where the Chairman is absent, the members present shall elect a Chairman for that meeting from among themselves.

(2) —

(a) All matters for decision by the Authority shall be dealt with at a meeting, of the Authority and shall be determined by the majority of the members present and voting.

(b) In the event of an equality of votes on any question considered at a meeting the Chairman of that meeting shall have a casting vote in addition to his original vote.

(c) All decisions of the Authority supported by reasons, shall be in writing and the seal of the Authority affixed thereto.

(3) —

(a) Any member of the Authority may by written notice, request the Chairman to call a meeting and the Chairman shall not otherwise than for justifiable reasons refuse to do so.

(b) The Chief Executive Officer appointed under section 15 shall summon all meetings of the Authority.

(4) No act, decision or proceeding of the Authority, shall be deemed to be invalidated by reason only of the existence of any vacancy of the Authority or any defect in the appointment of any member thereof.

(5) The quorum for any meeting of the Authority shall be seven.

(6) Subject to the preceding provisions of this section, the Authority may regulate the procedure with regard to the meetings of the Authority and the transaction of business at such meeting.

11. The Seal.

(1) The seal of the Authority shall be as determined by the Authority.

(2) The seal of the Authority—

(a) may be altered in such manner as may be determined by the Authority;

(b) shall be in the custody of such person or persons as the Authority may, determine;

(c) shall not be affixed to any instrument or document without the sanction of the Authority and except in the presence of two members of the Authority, both of whom shall sign the instrument or document in token of their presence.

(3) The Authority shall maintain a register of documents to which the seal of the Authority has been affixed.

12. Authority to invite experts to meetings.

(a) The Authority may invite experts on a relevant subject matter to meetings of the Authority for the purpose of obtaining their views for the effective discharge of the functions of the Authority.

(b) The Authority shall have the discretion of accepting or rejecting the views of the experts.

(c) The experts shall have no voting rights.

13. Remuneration for attending meetings of the Authority.

The members of the Authority and the experts may be paid such remuneration for attendance at meetings of the Authority, as may be determined by the Minister with the concurrence of the Minister assigned the subject of Finance.

14. Powers and functions of the Authority.

The powers and functions of the Authority shall be to—

(a) decide on classifying a product as a medicine, medical device, borderline product or any other product;

(b) authorise registration and licensing of medicines, medical devices, borderline products and investigational medicinal products or cancel or suspend any such registration or licence in terms of this Act;

(c) regulate the registration, licensing, manufacture, importation, storage, re-packing, transportation, distribution, sale, advertising, promotion, recall and disposal of medicines, medical devices, borderline products or investigational medicinal products;

(d) authorise registration and regulation of Pharmacies and medicines stores;

(e) issue licences for manufacture, import, storage, distribution, transport and sale of medicines, medical devices, borderline products or investigational medicinal products and to cancel such licences in terms of this Act;

(f) appoint sub-committees as may be necessary for the effective discharge of the functions of the Authority;

(g) grant approval for the custom clearance of consignments of medicines, medical devices, borderline products, raw materials, packing materials, machinery or laboratory material needed for local manufacture of medicines, medical devices, borderline products or investigational medicinal products subject to the provisions of this Act and any other written law;

(h) conduct awareness programmes in relation to medicines, medical devices and borderline products and post market surveillance on the quality and safety of medicines, medical devices, borderline products and investigational medicinal products which are registered and licensed under this Act;

(i) monitor the registration and licensing process and the usage of medicines, medical devices, borderline products or investigational medicinal products which are registered and licensed under this Act for adverse reactions through use thereof, and to take immediate and necessary action in such an instance;

(j) collect data on quantities of medicines, medical devices, borderline products or investigational medicinal products imported under licences;

(k) collect data on utilization of medicines, medical devices, borderline products and investigational medicinal products in Sri Lanka, including data on expenditure of industry and trade, relating to promotional activities;

(l) advise the Minister on matters which are required to be prescribed;

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

(n) charge fees where necessary and appropriate in the discharge of its functions;

(o) recognize and appoint other local or overseas laboratories for testing of any medicine, medical device or borderline product as may be deemed necessary;

(p) follow Good Regulatory Practices (GRP) as prescribed in regulations;

(q) determine the initial price of medicines, medical devices and borderline products and advise the Minister on subsequent price revisions;

(r) provide information pertaining to the functions of the Authority to the stakeholders and general public; and

(s) issue, review and update guidelines, recommendations, directives and rules as applicable to medicines, medical devices and borderline products.

PART II

APPOINTMENT OF CHIEF EXECUTIVE OFFICER AND STAFF OF THE AUTHORITY

15. Appointment of the Chief Executive Officer of the Authority.

(1) The Authority shall in consultation with the Minister, appoint to the Staff of the Authority a chief Executive Officer (hereinafter referred to as the “CEO”) from among persons who hold a postgraduate degree from a recognized University in Medicine, Pharmacology, Pharmacy or any other related discipline with at least five years management experience at senior executive level.

(2) The CEO shall subject to the general directions and supervision of the Authority—

(a) be charged with the administration of the affairs of the Authority including the administration and control of the staff;

(b) be responsible for the execution of all decisions of the Authority;

(c) carry out all such functions as may be assigned to him by the Authority; and

(d) function as the Secretary to the Authority.

(3) The Authority may in consultation with the Minister remove the CEO from office—

(a) if he becomes permanently incapable of performing his duties;

(b) if he has done any act which, is of a fraudulent or illegal character or is prejudicial to the interests of the Authority; or

(c) has failed to comply with any directions issued by the Authority.

(4) The term of office of the CEO shall be for a period of three years from the date of appointment and shall be eligible for re-appointment.

(5) The office of the CEO shall become vacant upon the death, removal from office under subsection (3) or resignation by letter in that behalf addressed to the Minister by the holder of that office.

(6) If any vacancy occurs in the office of the CEO, the Authority may appoint any other suitable officer of the Authority to perform the duties of the CEO until an appointment is made under subsection (1).

16. Staff of the Authority.

(1) The Authority may appoint such technical and other officers and employees as may be necessary for the efficient discharge of its functions.

(2) The Authority may, in respect of the officers and employees appointed to the Authority under subsection (1)—

(a) exercise disciplinary control over or dismiss such officers and employees;

(b) fix the rates at which such officers and employees shall be remunerated in keeping with related guidelines of the Government;

(c) determine the terms and conditions of employment of such officers and employees; and

(d) establish a staff welfare and social security schemes for the benefit of such officers and employees and make contributions to any such schemes.

(3) The Authority may make rules in respect of all or any of the matters referred to in subsections (1) and (2).

(4) The Authority shall not however appoint as an officer or an employee of the Authority, any person who has been dismissed from any previous position held by such person in the public or private sector as an officer or an employee.

17. Public officers to be appointed to the Staff of the Authority.

(1) At the request of the Authority any officer in the public service may, with the consent of that officer and the Secretary to the Ministry under which that officer is employed, and the Secretary to the Ministry of the Minister assigned the subject of Public Administration, be temporarily appointed to the staff of the Authority for such period as may be determined by the Authority or with like consent, be permanently appointed to such staff.

(2) Where any officer in the public service is temporarily appointed to the staff of the Authority, the provisions of section 14(2) of the National Transport Commission Act, No. 37 of 1991 shall, mutatis mutandis, apply to and in relation to such officer.

(3) Where any officer in the public service is permanently appointed to the staff of the Authority, the provisions of section 14(3) of the National Transport Commission Act, No. 37 of 1991 shall, mutatis mutandis, apply to and in relation to such officer.

(4) Where any officer or employee of the Department of Health is appointed to the staff of the Authority, the provisions of sections 16, 17, 18 and 19 of the National Aquaculture Development Authority of Sri Lanka Act, No. 53 of 1998 shall mutatis mutandis apply to and in relation to such officer or employee.

(5) Where the Authority employs any person who has entered into a contract with the Government by which he has agreed to serve the Government for a specified period, any period of service with the Authority by that person shall be regarded as service to the Government for the purpose of discharging the obligations of such contract.

PART III

FINANCE

18. Fund of the Authority.

(1) The Authority shall have its own Fund.

(2) There shall be paid into the Fund—

(a) all such sums of money as may be voted upon from time to time by Parliament for the use of the Authority;

(b) all such sums of money as may be received by the Authority by way of charges and levied for services provided by the Authority under this Act;

(c) all such sums of money as may be received by the Authority in the exercise, performance and discharge of its powers and functions under this Act;

(d) all such sums of money as may be received by the Authority by way of loans, donations, gifts and grants;

(e) all such sums of money accruing to the credit of the Authority; and

(f) all such sums of money received by alienating, leasing or renting of property owned by the Authority.

(3) There shall be paid out of the Fund all such sums of money required to defray the expenditure incurred by the Authority in the exercise and performance of its powers and functions under this Act.

19. Authority to maintain accounts.

The Authority may open and maintain any account with any bank as it may think appropriate, and such account shall be operated in accordance with prevailing financial regulations of the Government pertaining to financial transactions of public corporations.

20. Financial year and audit of accounts.

(1) The financial year of the Authority shall be the calendar year.

(2) The Authority shall cause proper books of accounts to be kept of the income and expenditure, assets and liabilities and all other financial transactions of the Authority.

(3) For the purpose of presenting a true and fair view of the financial performance and financial condition of the Authority, the Authority shall prepare the accounts in accordance with the Sri Lanka Accounting Standards adopted by the Institute of Chartered Accountants of Sri Lanka under the Sri Lanka Accounting and Auditing Standards Act, No. 15 of 1995.

(4) The provisions of Article 154 of the Constitution relating to the audit of accounts of public corporations shall apply to the audit of the accounts of the Authority.

21. Investment of funds.

Moneys belonging to the Authority may, with the approval of the Minister and with the concurrence of the Minister assigned the subject of Finance, be invested in Government approved securities.

22. Borrowing powers of the Authority.

(1) The Authority may, with the written consent of the Minister and the Minister assigned the subject of Finance and in accordance with the terms of any general authority given, borrow or obtain on credit terms such sums as the Authority may require to meet the obligations of the Authority.

(2) The aggregate of the amount outstanding in respect of any loans raised by the Authority under this section shall not at any time exceed such amount as may be determined by the Minister.

PART IV

GENERAL

23. Annual Report

(1) The Authority shall within six months of the end of each financial year, submit to the Minister an annual report of the activities carried on by the Authority during that financial year, and cause a copy each of the following documents to be attached to the report—

(a) the audited accounts of the Authority for the year along with the Auditor-General’s report; and

(b) a report of proposed activities for the year immediately following, the year to which such report and accounts relates.

(2) The Minister shall lay copies of the report and documents submitted under subsection (1) before Parliament within six months from the date of receipt of such report.

24. Declaration of secrecy.

Every member of the Authority and all officers and employees of the Authority shall, before entering upon duties, sign a declaration pledging to observe strict secrecy in respect of all matters connected with the affairs of the Authority, which has come to his knowledge in the performance or exercise of his powers and functions under this Act and shall by such declaration pledge himself not to disclose any such matter, except—

(a) when required to do so by a court of law; or

(b) for the purpose of exercising or performing the powers and functions under this Act or any other written law.

25. Delegation of powers of the Authority.

(1) The Authority may in writing and subject to such conditions as may be specified therein, delegate to the CEO and any Head of the relevant division of the Authority any of its powers or functions and any such person or any Head of the relevant division shall exercise or perform such powers or functions in the name and on behalf, of the Authority.

(2) The Authority may, notwithstanding any delegation made under subsection (1), by itself exercise or perform any power or function so delegated and may at any time revoke any such delegation.

26. Directions by the Minister.

(1) The Minister may from time to time, issue to the Authority such general or special directions in writing as to the exercise and performance of its powers and functions so as to ensure the giving proper effect to Government Policy and it shall be the duty of the Authority to give effect to such directions.

(2) The Minister may direct the Authority to furnish to him in such form as he may require, returns, accounts and any other information relating to the work of the Authority, and it shall be the duty of the Authority to give effect to such directions.

27. Officers and employees of the Authority deemed to be public officers.

The CEO and the officers and employees of the Authority shall be deemed to be public officers within the meaning of and for the purposes of the Penal Code .

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Recent Updates

NATIONAL TRANSPORT COMMISSION (AMENDMENT) ACT, NO. 6 OF 2017


ECONOMIC SERVICE CHARGE (AMENDMENT) ACT, NO. 7 OF 2017


CIVIL PROCEDURE CODE (AMENDMENT) ACT, NO. 8 OF 2017


OFFICE ON MISSING PERSONS (ESTABLISHMENT, ADMINISTRATION AND DISCHARGE OF FUNCTIONS) (AMENDMENT) ACT, NO. 9 OF 2017


IMMIGRANTS AND EMIGRANTS (AMENDMENT) ACT, No. 7 OF 2015


NATIONAL TRANSPORT COMMISSION (AMENDMENT) ACT, NO. 6 OF 2017


ECONOMIC SERVICE CHARGE (AMENDMENT) ACT, NO. 7 OF 2017


CIVIL PROCEDURE CODE (AMENDMENT) ACT, NO. 8 OF 2017


OFFICE ON MISSING PERSONS (ESTABLISHMENT, ADMINISTRATION AND DISCHARGE OF FUNCTIONS) (AMENDMENT) ACT, NO. 9 OF 2017


IMMIGRANTS AND EMIGRANTS (AMENDMENT) ACT, No. 7 OF 2015


NATIONAL TRANSPORT COMMISSION (AMENDMENT) ACT, NO. 6 OF 2017


ECONOMIC SERVICE CHARGE (AMENDMENT) ACT, NO. 7 OF 2017


CIVIL PROCEDURE CODE (AMENDMENT) ACT, NO. 8 OF 2017


OFFICE ON MISSING PERSONS (ESTABLISHMENT, ADMINISTRATION AND DISCHARGE OF FUNCTIONS) (AMENDMENT) ACT, NO. 9 OF 2017


IMMIGRANTS AND EMIGRANTS (AMENDMENT) ACT, No. 7 OF 2015


NATIONAL TRANSPORT COMMISSION (AMENDMENT) ACT, NO. 6 OF 2017


ECONOMIC SERVICE CHARGE (AMENDMENT) ACT, NO. 7 OF 2017


CIVIL PROCEDURE CODE (AMENDMENT) ACT, NO. 8 OF 2017


OFFICE ON MISSING PERSONS (ESTABLISHMENT, ADMINISTRATION AND DISCHARGE OF FUNCTIONS) (AMENDMENT) ACT, NO. 9 OF 2017


IMMIGRANTS AND EMIGRANTS (AMENDMENT) ACT, No. 7 OF 2015


NATIONAL TRANSPORT COMMISSION (AMENDMENT) ACT, NO. 6 OF 2017


ECONOMIC SERVICE CHARGE (AMENDMENT) ACT, NO. 7 OF 2017


CIVIL PROCEDURE CODE (AMENDMENT) ACT, NO. 8 OF 2017


OFFICE ON MISSING PERSONS (ESTABLISHMENT, ADMINISTRATION AND DISCHARGE OF FUNCTIONS) (AMENDMENT) ACT, NO. 9 OF 2017


IMMIGRANTS AND EMIGRANTS (AMENDMENT) ACT, No. 7 OF 2015


NATIONAL TRANSPORT COMMISSION (AMENDMENT) ACT, NO. 6 OF 2017


ECONOMIC SERVICE CHARGE (AMENDMENT) ACT, NO. 7 OF 2017


CIVIL PROCEDURE CODE (AMENDMENT) ACT, NO. 8 OF 2017


OFFICE ON MISSING PERSONS (ESTABLISHMENT, ADMINISTRATION AND DISCHARGE OF FUNCTIONS) (AMENDMENT) ACT, NO. 9 OF 2017


IMMIGRANTS AND EMIGRANTS (AMENDMENT) ACT, No. 7 OF 2015


NATIONAL TRANSPORT COMMISSION (AMENDMENT) ACT, NO. 6 OF 2017


ECONOMIC SERVICE CHARGE (AMENDMENT) ACT, NO. 7 OF 2017


CIVIL PROCEDURE CODE (AMENDMENT) ACT, NO. 8 OF 2017


OFFICE ON MISSING PERSONS (ESTABLISHMENT, ADMINISTRATION AND DISCHARGE OF FUNCTIONS) (AMENDMENT) ACT, NO. 9 OF 2017


IMMIGRANTS AND EMIGRANTS (AMENDMENT) ACT, No. 7 OF 2015


NATIONAL TRANSPORT COMMISSION (AMENDMENT) ACT, NO. 6 OF 2017


ECONOMIC SERVICE CHARGE (AMENDMENT) ACT, NO. 7 OF 2017


CIVIL PROCEDURE CODE (AMENDMENT) ACT, NO. 8 OF 2017


OFFICE ON MISSING PERSONS (ESTABLISHMENT, ADMINISTRATION AND DISCHARGE OF FUNCTIONS) (AMENDMENT) ACT, NO. 9 OF 2017


IMMIGRANTS AND EMIGRANTS (AMENDMENT) ACT, No. 7 OF 2015