TOURIST DEVELOPMENT ACT

Arrangement of Sections

1. Short title.

1A. "Tourism Act, No. 38 of 2001” and "Sri Lanka Tourism Development Authority” to be substituted for the expressions "principal Act” and "Board”, respectively.

PART I

COMPULSORY ACQUISITION OF LAND, VESTING OF FORESHORE AND RESTHOUSES IN THE BOARD, ALIENATION OF LAND, AND PROVISIONS APPLICABLE TO LOANS

CHAPTER I

COMPULSORY ACQUISITION OF LAND AND THE VESTING OF STATE LAND
FOR TOURIST DEVELOPMENT PROJECTS

2. Compulsory acquisition of land.

3. Special grant or lease of State land to the Board.

4. Vesting of State land in the Board.

5. Chairman may cause a survey and plan to be made of any State land.

6. No compensation payable by the Board in respect of certain lands.

CHAPTER II

THE FORESHORE

7. [Repealed]

8. [Repealed]

CHAPTER III

REST HOUSES

9. Vesting of rest houses in the Board.

10. Special provisions in the case of certain rest houses.

CHAPTER IV

ALIENATION OF LAND BY THE BOARD

11. Right of alienation of land held by the Board.

12. Conditions of alienation of land by the Board.

13. Consequential provisions applicable in cases of alienation of land subject to a certain condition.

14. No compensation payable to alienee on revesting of land in the Board.

15. Payments by the Board to credit agency on revesting of land.

16. Power of the Board to enter and inspect certain lands.

17. Cancellation or determination of instruments of alienation of land.

18. Cancellation or determination of instrument of alienation of land and ejectment of occupants.

19. No compensation or damages for loss incurred by reason of the cancellation or determination of any instrument of alienation of any land.

CHAPTER V

PROVISIONS WHICH MAY BE APPLICABLE TO LOANS

20. Application of this chapter.

21. Power of appropriate authority to investigate purpose to which loan is applied.

22. Power of appropriate authority to require additional security or recall loan.

23. Change of security.

24. Mode of repayment of loans.

25. Registered address of borrower.

26. Service of notice on borrower.

27. Priority of charge created by loan made by appropriate authority.

28. Form of mortgage of land.

29. Default of payment.

30. Action by appropriate authority where default is made.

31. Appointment of manager to take possession of mortgaged land.

32. Procedure where Manager is appointed.

33. Authorisation of sale of mortgaged land.

34. Where borrower is dead.

35. Notice of sale by public auction of land mortgaged to appropriate authority.

36. Notice of sale.

37. Payment before sales.

38. Upset price.

39. Default in respect of one of two loans on the same land.

40. Recovery of expenses and costs incurred by the appropriate authority.

41. Payment of balance of proceeds of sale after deduction of amount due to its appropriate authority.

42. Certificate of sale.

43. Order for delivery of possession.

44. Cancellation of sale.

45. Resale by appropriate authority.

46. Appropriate authority not precluded from other methods of recovery.

CHAPTER VI

MISCELLANEOUS

47. Procedure in ejectment of occupant of land held by the Board.

48. Sections 120 to 127 of the Land Development Ordinance made applicable to ejectment of occupants.

49. Loans and alienations at land for the benefit of citizens of Sri Lanka.

50. Sections 46 and 47 of the Mortgage Act not to apply where land alienated by the Board is mortgaged to an approved credit agency.

51. Provisions of Debt Conciliation Ordinance and of section 111A of Inland Revenue Act not to apply.

52. Regulations.

PART II

NATIONAL HOLIDAY RESORTS

CHAPTER I

ESTABLISHMENT OF NATIONAL HOLIDAY RESORTS AND POWERS AND DUTIES OF THE BOARD IN SUCH RESORTS

53. Establishment of National Holiday Resorts.

54. Administration of each holiday resort vested in the Board.

55. Functions of the Board in relation to each National Holiday Resort.

56. Regulations to modify effect of certain written laws.

CHAPTER II

CONSTITUTION OF RESORT AUTHORITIES AND POWERS AND FUNCTIONS OF SUCH AUTHORITIES

57. A Resort Authority to be notification published in the Gazette.

58. Resort Authority to act as agent of the Board.

59. Special provisions applicable in case of Resort Authorities.

60. Contracts by Resort Authority with Government departments, local authorities.

61. Delegation of powers of Resort Authority to its officers.

62. Power of Resort Authority to grant general authorities to its officers.

63. Punishment for obstructing officers of Resort Authority.

64. A Resort Authority and its officers and servants to be public servants.

CHAPTER III

PLANNING PROCEDURE

65. Board may direct Resort Authority to prepare resort development plan.

66. Draft resort development plan to be submitted to the Board and to the Minister.

67. Provision with respect to land contiguous to a National Holiday Resort.

68. Coming into operation of resort development plan.

69. Direction to prepare a new resort development plan for modification or revocation of an existing plan.

70. Application for an Order for the revocation of any provision contained in a resort development plan.

71. General provisions to contents of resort development plan.

72. Authority responsible for execution of resort development plan.

73. Permits for execution, alteration of structures, and for execution of works in connection with roads, and offences.

PART IIA

TOURIST DEVELOPMENT AREAS

73A. Declaration of areas as tourist development areas by Order of the Minister effect of such Order.

73B. Functions of the Board in relation to each tourist development area.

73C. Prohibition of construction erections of buildings within the tourist development area without the approval of the Board given with the concurrence of the Urban Development Authority and the local authority concerned.

PART III

PROTECTION OF HIGHWAYS AND PLACES OF SCENIC BEAUTY AND CONTROL OF JUNK YARDS

74. Code for protection of highways.

75. State land within any area declared to be a scenic reserve not to be alienated without the prior approval of the Minister.

76. Provisions regarding Prescription not to apply in certain cases.

PART IV

REGULATION, SUPERVISION, CLASSIFICATION, INSPECTION AND CONTROL OF THE ESTABLISHMENT, MAINTENANCEAND OPERATION OF TOURIST SERVICES

CHAPTER I

TOURIST SERVICES

77. Repealed.

78. Repealed.

79. Repealed.

80. Repealed.

81. Repealed.

82. Repealed.

CHAPTER II

CONTROL OF PRICES, FEES, RATES AND CHARGES IN RESPECT OF TOURIST SERVICES

83. Order by Chairman fixing maximum, or minimum prices in respect of tourist services.

84. Revocation of price control Order.

85. Duty of proprietor or tourist services to maintain register of prices.

86. Power to make regulations for the purposes of this Chapter.

87. Offences against this Chapter or price control Orders.

PART V

GENERAL

88. Effect of subsidiary written law.

89. Special provisions relating to the Board.

90. Power of Board to enter into contracts.

91. Power of Minister to make Orders.

92. Rent Act not to apply within National Holiday Resorts or land alienated for the purpose of tourist development projects.

93. Exemption of Resort Authority from income tax.

94. Protection for action taken on the direction of the Board or any Resort Authority or any advisory body.

95. No writ to issue against person or property of a member of the Board or any Resort Authority or advisory body.

96. Regulations.

97. Delegation of powers by the competent authority.

98. Protection of public interests.

99. Offences.

100. Offences by bodies of persons.

101. Power to compound offences.

102. Effect of other laws.

103. Interpretation.

PART VI

SPECIAL PROVISIONS RELATING TO CERTAIN MATTERS

104. Application of the Guides ordinance.

105. Special provisions in respect of certain pest acquisitions, alienations of land.

SCHEDULES

14 of 1968,

57 of 1981,

2 of 1987,

39 of 1991,

38 of 2005.

AN ACT to provide for the promotion of Tourist Development and, in particular, but without prejudice to the generality of the foregoing provisions, to provide for the promotion and carrying out of Tourist Development projects, and for matters connected therewith or incidental thereto.

[Date of Commencement: 21st June, 1968]

1. Short title.

This Act may be cited as the Tourist Development Act.

1A. "Tourism Act, No. 38 of 2001” and "Sri Lanka Tourism Development Authority” to be substituted for the expressions "principal Act” and "Board”, respectively.

Wherever the expressions "principal Act” and "Board” appear in this Act, such expressions shall be read and construed as being a reference to the Tourism Act, No. 38 of 2005 and the Sri Lanka Tourism Development Authority established by section 2 of the Tourism Act, No. 38 of 2005”, respectively.

[S 1A ins by s 68 of Act 38 of 2005.]

PART I

COMPULSORY ACQUISITION OF LAND, VESTING OF FORESHORE AND RESTHOUSES IN THE BOARD, ALIENATION OF LAND, AND PROVISIONS APPLICABLE TO LOANS

CHAPTER I

COMPULSORY ACQUISITION OF LAND AND THE VESTING OF STATE LAND FOR TOURIST DEVELOPMENT PROJECTS

2. Compulsory acquisition of land.

(1) Where the acquisition of any land is necessary so as to make it available to the Board for the purpose of any tourist development project, whether such project is to be carried out by the Board or by any other person under the general direction and control of the Board, and the Minister by Order published in the Gazette approves the proposed acquisition so as to make such land so available—

(a) the purpose of that project shall be deemed to be a public purpose, and such land may be acquired under the Land Acquisition Act for the purpose of that project, and may be subsequently vested in the Board in the manner provided by subsection (2); and

(b) accordingly, no such Order, acquisition and subsequent vesting shall be deemed to have been, and to be, invalid by reason only of the fact that such land is subsequently alienated by the Board to any other person for the purpose of carrying out that project under and in accordance with the provisions of this Act.

(2) Where any land is, in pursuance of subsection (1), acquired under the Land Acquisition Act so as to be made available to the Board for the purpose of any tourist development project, the acquiring officer of the district in which that land is situated shall, after possession of that land has been taken for and on behalf of the State, by a certificate issued under his hand, vest that land in the Board, subject to such conditions or restrictions, if any, as may be specified in the certificate.

(3) The expression "public corporation” in section 49A of the Land Acquisition Act shall be deemed to include the Board and that expression shall, for the purposes of that Act, be construed accordingly.

(4) Where any land in any area is, in pursuance of the provisions of this Part, acquired under the Land Acquisition Act for the purpose of being made available to the Board for any tourist development project, then, notwithstanding anything to the contrary in the Land Acquisition Act, in ascertaining the market value of the land for the purpose of determining the compensation payable in respect of that land, no account shall be taken of any benefit or increase in value which has accrued or of any expectation of any benefit or increase in value likely to accrue, directly or indirectly, from any work of development or any other operation carried out by the Board, the Government or any Resort Authority in pursuance of the provisions of this Act.

3. Special grant or lease of State land to the Board.

Where the Minister certifies that any State land is required to be made available to the Board for the purpose of any tourist development project, whether such project is to be carried out by the Board or by any other person under the general direction and control of the Board—

(a) the purpose of that project shall be deemed to be a purpose for which a special grant or a lease of such land may be made to the Board under section 6 of the State Lands Ordinance, and accordingly, the provisions of that Ordinance shall apply to a special grant or lease of such land to the Board for the purpose of that project; and

(b) accordingly, no such special grant or lease shall be deemed to have been, and to be, invalid, by reason only of the fact that such land is subsequently alienated to any other person for the purpose of that project under and in accordance with the provisions of this Act.

4. Vesting of State land in the Board.

(1) Notwithstanding anything in the State Lands Ordinance or in any other written law, where the Minister certifies that any State land is required to be made available to the Board for the purpose of any tourist development project, whether such project is to be carried out by the Board or by any other person under the general direction and control of the Board, the Minister may, with the concurrence of the Minister to whom the subject or function of State Lands has been assigned by the President under the Constitution, by Order (hereafter in this Act referred to as a "vesting Order”) published in the Gazette, vest such land in the Board, with effect from such date as shall be specified in the Order, subject to such restrictions or conditions, if any, as may be so specified—

(2) A vesting Order shall have the effect of giving the Board absolute title to any land specified in the Order with effect from the date specified therein and free from all encumbrances.

(3) The vesting of any State land in the Board shall not be deemed to convey any right to any mineral, mineral product or mineral oil in, upon or under that land, unless otherwise expressly provided in the instrument of alienation and save as otherwise so expressly provided, any such mineral, mineral product and oil shall, notwithstanding any such vesting, be deemed to remain and shall remain the absolute property of the State.

5. Chairman may cause a survey and plan to be made of any State land.

Where any State land is, in pursuance of section 3 or section 4 to be vested in the Board, the Chairman of the Board may, if there is no plan of that land made by the Surveyor-General's Department, cause a survey and plan of that land to be made by a licensed surveyor approved by the Surveyor-General.

6. No compensation payable by the Board in respect of certain lands.

Where any land is, in pursuance of section 2, compulsorily acquired under the Land Acquisition Act so as to be made available to the Board for the purpose of a tourist development project and is subsequently vested in the Board under this Act, no compensation or damages shall be payable by the Board to any other person for any loss incurred by him, whether directly or indirectly, or by way of business or otherwise, by reason only of the fact of such compulsory acquisition and subsequent vesting and, accordingly, such other person shall not be entitled to demand or receive such compensation or damages from the Board:

Provided, however, that nothing in the preceding provisions of this section shall be deemed or construed to prejudice or affect the right to compensation, to which any person interested in that land within the meaning of that Act is or was entitled, from the State or any other person under the provisions of that Act in respect of such compulsory acquisition of that land.

CHAPTER II

THE FORESHORE

7. ...

[S 7 rep by s 39 of Act 57 of 1981.]

8. ...

[S 8 rep by s 39 of Act 57 of 1981.]

 

CHAPTER III

REST HOUSES

9. Vesting of rest houses in the Board.

(1) Notwithstanding anything in any other enactment or any subsidiary written law, the Minister may, by Order published in the Gazette, vest any rest house in the Board:

Provided, however, that where the control of any rest house is vested in any local authority, the Minister shall not make such Order in respect of that rest house, except with the prior concurrence of the Minister to whom the subject or function of Local Government has been assigned by the President under the Constitution;

And provided, further, that where the control of any rest house is not vested in any local authority, the Minister shall not make such Order in respect of such rest house except with the prior concurrence of the Minister to whom the subject or function of Home Affairs has been assigned by the President under the Constitution.

(2) Any Order made by the Minister under subsection (1) shall have the effect of giving the Board absolute title to the rest house specified in the Order, including the land in or upon which such rest house is situated, with effect from the date specified therein and free from all encumbrances.

10. Special provisions in the case of certain rest houses.

Where, on the day immediately prior to the date of the coming into operation of the Ceylon Tourist Board Act, the control of any rest house was vested in the former Director of the Government Tourist Bureau or the former Tourist Development Board, then, if an Order under section 9 is made by the Minister in respect of that rest house, such Order, and the vesting effected by such Order, shall be deemed, for all purposes, to have taken effect on that date, and accordingly, the Board or any of its officers or servants shall be deemed to have had on or after that date, and to have, power and authority, on behalf of the Board—

(a) to have taken, and to remain in, possession and custody of that rest house;

(b) to have entered, and to enter, into contracts and agreements in respect thereof;

(c) to have issued, and to issue, instruments or documents by whatsoever name or designation called in respect thereof; and

(d) to have done, and to do, all such other acts or things as may have been, and may be necessary, in respect thereof.

CHAPTER IV

ALIENATION OF LAND BY THE BOARD

11. Right of alienation of land held by the Board.

(1) Without prejudice to the generality of the powers conferred on the Board by the Ceylon Tourist Board Act, the Board may, with the approval of the Minister, alienate, for the purpose of any tourist development project, any land held by the Board, subject to—

(a) such conditions as are specified in the succeeding provisions of this Chapter; and

(b) such further conditions as the Board may, in its absolute discretion, deem necessary to specify in the instrument of alienation, and in particular, but without prejudice to the generality of the foregoing provisions of this paragraph, a condition to the effect that the alienation effected by such instrument may be cancelled or determined in the event of a failure to comply with any other condition specified in such instrument, or in the event of any money due to the Board under such instrument remaining unpaid for any such period as may be specified therein.

(2) Nothing in the State Lands Ordinance shall affect, or be deemed or construed to affect, the alienation of any State land held by the Board for the purpose of any tourist development project.

(3) No land vested in the Board under the provisions of this Act or any other written law shall be alienated by the Board by way of gift save to a local authority or to any Government-sponsored Board or Corporation constituted under any law.

12. Conditions of alienation of land by the Board.

(1) It shall be a condition of every alienation, by way of sale, of any land by the Board under this Chapter—

(a) that the vendee shall, at his own expense, carry out the provisions of any tourist development project for the time being in operation in respect of such land, and do all the necessary work and take all the necessary measures in, upon or in relation to such land or any structure thereon within the period specified by the Board in the instrument of alienation, or such further period as the Board may thereafter specify, from time to time;

(b) that, in the event of the vendee failing to do so within the period or further period so specified, the sale effected by such instrument may be cancelled or determined by the Board; and

(c) that the vendee shall have no right to any timber in or upon such land, and accordingly, that such timber shall, notwithstanding such alienation by way of sale, be deemed to remain the property of the Board.

(2) It shall be a condition of every alienation, otherwise than by way of sale, of any land by the Board under this Chapter—

(a) that the alienee shall, at his own expense, carry out the provisions of any tourist development project for the time being in operation in respect of such land, and do all the necessary work and take all the necessary measures in, upon or in relation to such land or any structure thereon, within the period specified by the Board in the instrument of alienation, or such further period as the Board may thereafter specify, from time to time;

(b) that, in the event of the alienee failing to do so within the period or further period so specified, the alienation effected by such instrument may be cancelled or determined by the Board; and

(c) that the alienee shall have no right to any timber in or upon such land, and accordingly, that such timber shall, notwithstanding such alienation, remain the property of the Board.

13. Consequential provisions applicable in cases of alienation of land subject to a certain condition.

Where the Board alienates, by way of lease or permit, any land under this Chapter subject to the condition that, according as it may be specified in the instrument of alienation, all or any of the provisions of Chapters V to IX (both Chapters inclusive) of the Land Development Ordinance shall apply to that land in like manner and to the same extent as such provisions apply in the case of a protected holding under that Ordinance, then, all or any of such provisions, according as it may be so specified, shall so apply; and for the purpose of such application, such instrument shall be deemed to be an alienation, such land shall be deemed to be a protected holding1, the alienee shall be deemed to be the owner of that holding, and the Board shall be deemed to be the Government Agent and may exercise, discharge or perform in respect of such land or the alienee any power, duty or function vested in, imposed upon, or assigned to the Government Agent under that Ordinance.

14. No compensation payable to alienee on revesting of land in the Board.

(1) Where any land alienated by the Board by way of sale under this Chapter revests in the Board under section 18, the Board shall not be liable to pay to the vendee, and the vendee shall not be entitled to demand from, or to be paid by, the Board—

(a) the price at which the land was sold by the Board; or

(b) the value of the land at the time of such revesting; or

(c) the value of any improvements effected thereon by the vendee, whether or not for the purpose of the tourist development project for the time being in operation in respect of that land; or

(d) the value of the goodwill of any trade, business or undertaking carried on in or upon such land; or

(e) the value, as a going concern, of any such trade, or business or undertaking.

(2) Where any right, interest or benefit under any alienation of land, otherwise than by way of sale by the Board under this Chapter, revests in the Board under section 18, the Board shall not be liable to pay to such alienee, and such alienee shall not be entitled to demand from, or to be paid by, the Board—

(a) the value of such right, interest or benefit; or

(b) the value of any improvements effected on such land by the alienee, whether or not for the purpose of carrying out the provisions of the tourist development project for the time being in operation in respect of that land; or

(c) the value of the goodwill of any trade, business or undertaking carried on in or upon such land; or

(d) the value, as a going concern, of any such trade or business or undertaking.

15. Payments by the Board to credit agency on revesting of land.

(1) Where any land alienated by the Board, by way of sale, under this Chapter which is subject to a mortgage or encumbrance in favour of an approved credit agency entitled to notice under the second proviso to section 17, revests in the Board under section 18, the Board shall pay to such approved credit agency, either—

(a) the price at which the land was sold by the Board, or the value of the land at the time of such revesting, whichever is less, together with the value of any improvements effected thereon by the vendee for the purposes of the tourist development project for the time being in operation in respect of the land; or

(b) the amount due on the mortgage or encumbrance in favour of such approved credit agency;

whichever is less.

(2) Where any right, interest or benefit under any alienation of land, otherwise than by way of sale, by the Board under this Chapter is subject to any mortgage or encumbrance in favour of any approved credit agency entitled to notice under the second proviso to section 17 revests in the Board under section 18, the Board shall pay to such approved credit agency the value of such right, interest or benefit together with the value of any improvements effected on such land by the alienee for the purpose of carrying out the provisions of the tourist development project for the time being in operation in respect of such land, or the amount due at the time of the cancellation or determination of such alienation, whichever is less.

(3) "Value” in relation to any land or improvements on such land, means, for the purposes of the preceding subsections, the value as assessed by the Chief Valuer of the Government.

In the assessment of such value none of the following facts shall be taken into account by such Chief Valuer—

(a) the goodwill of any trade, business or undertaking carried on in or upon such land; and

(b) the fact that any such trade, business or undertaking was a going concern.

(4) No payment in respect of any improvements shall be made by the Board under subsection (1) or subsection (2), unless such improvements have been in conformity with the provisions of the tourist development project then in operation in respect of that land.

(5) No payment shall be made by the Board to any approved credit agency in respect of any land subject to any mortgage or encumbrance in favour of such agency, unless such agency discharges the mortgagor or encumbrance, as the case may be, from the obligation arising on such mortgage or encumbrance to the extent of such payment.

16. Power of the Board to enter and inspect certain lands.

It shall be lawful for the Board or any member thereof or any person acting under the authority of the Chairman of the Board to enter into or upon any land alienated by the Board under this Chapter for the purpose of ascertaining whether the provisions of any tourist development project for the time being in operation in respect of such land are being or have been carried out on such land, and to inspect such land or any structure thereon or any measures taken for that purpose:

Provided, however, that no person shall enter or inspect such land in pursuance of the power conferred by the preceding provisions of this section except with the consent of the alienee of such land or the occupier, or after giving such alienee or occupier not less than seven days notice of the intention to do so.

17. Cancellation or determination of instruments of alienation of land.

Where the alienation of any land by the Board under this Chapter becomes liable to cancellation or determination by virtue of the operation of—

(a) the provisions of section 12; or

(b) any condition specified in the instrument of alienation to the effect that such alienation is liable to cancellation or determination in the event of a failure to comply with any other condition specified in such instrument, or in the event of any money due to the Board under such instrument remaining unpaid for any period specified in such instrument,

the Board may, by endorsement on such instrument, cancel such alienation, and thereupon such alienation shall be determined accordingly:

Provided, however, that no such endorsement shall be made on such instrument until the alienee of such land has been afforded an opportunity of showing cause against the proposed cancellation or determination:

And provided, further, that where such land is subject to any mortgage or encumbrance in favour of any approved credit agency, no such endorsement shall be made on such instrument until such agency has been given written notice of the proposed cancellation if, but only if, such agency had notified in writing to the Board the existence of such mortgage or encumbrance, and had also furnished the Board the name and address of such agency to which such notice may be given.

18. Cancellation or determination of instrument of alienation of land and ejectment of occupants.

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