CEYLON ELECTRICITY BOARD [Cap. 538CEYLON ELECTRICITY BOARD [Cap. 538(b) The Chairman or Vice-Chairman or other member of the Board, as the case may be, who presides at any meeting

CEYLON ELECTRICITY BOARD [Cap. 538

CHAPTER 538

CEYLON ELECTRICITY BOARD

AN ACT TO PROVIDE FOR THE ESTABLISHMENT OF AN ELECTRICITY BOARD FOR THED E V E L O P M E N T AND C O - O R D I N A T I O N OF THE G E N E R A T I O N , SUPPLY A N DDISTRIBUTION OF ELECTRICAL ENERGY ; FOR THE TRANSFER TO SUCH BOARDOF THE G O V E R N M E N T E L E C T R I C A L U N D E R T A K I N G S , A N D , IN C E R T A I NCIRCUMSTANCES, OF THE ELECTRICAL UNDERTAKINGS OF LOCAL AUTHORITIES;FOR THE EMPLOYMENT BY THE BOARD OF EMPLOYEES OF THE DEPARTMENT OFGOVERNMENT ELECTRICAL UNDERTAKINGS; FOR THE ENTERING INTO JOINTSCHEMES BY SUCH BOARD WITH ANY GOVERNMENT DEPARTMENT OR APPROVEDBODY FOR THE GENERATION OF ELECTRICAL ENERGY, THE IRRIGATION OF LANDS,THE CONTROL OF FLOODS OR OTHER LIKE OBJECTS; AND TO MAKE PROVISIONFOR ALL MATTERS CONNECTED THEREWITH OR INCIDENTAL THERETO.

ActsNos.l7of l969,

31 of l969,29 of 1979.

1. This Act may be cited as the Ceylon (c)Electricity Board Act.

PART I

CONSTITUTION, POWERS AND DUTIES OFTHE CEYLON ELECTRICITY BOARD

2. (1) There shall be established aBoard which shall be called the CeylonElectricity Board, hereinafter referred to as" the Board ".

(2) The Board shall, by the nameassigned to it by subsection (1), be a bodycorporate and shall have perpetualsuccession and a common seal and may sueand be sued in such name.

3. (1) The Board shall consist of—

(a) four members appointed by theMinister from persons who appearto the Minister to have hadexperience and shown capacity inengineering, commerce, administrationor accountancy,

(b) one member appointed by theMinister, in consultation with theMinister in charge of the subject ofLocal Government, to representlocal authorities,

[15th July, 1969.]

one member appointed by theMinister, in consultation with theMinister in charge of the subject ofIndustries, to represent the field ofindustry, and

(d) one member being an officer of theGeneral Treasury nominated by theMinister in charge of the subject ofFinance.

(2) A person shall be disqualified forbeing appointed or continuing as a memberof the Board if he is a Member ofParliament.

(3) Before appointing a person to be amember of the Board, the Minister shallsatisfy himself that such person has no suchfinancial or other interest as is likely toaffect prejudicially the discharge by suchperson of his functions as a member of theBoard, and the Minister shall satisfyhimself, from time to time, with respect toevery member of the Board appointed bythe Minister, that such member has no suchinterest. Any person who is appointed bythe Minister, or whom the Ministerproposes to appoint, as a member of theBoard shall, whenever requested by theMinister so to do, furnish to the Ministersuch information as the Minister considersnecessary for the performance of his dutiesunder this subsection.

Short title.

Establishmentof the CeylonElectricityBoard.

Members ofthe Board.

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Cap.538] CEYLON ELECTRICITY BOARD

(4) A member of the Board who is inany way directly or indirectly interested inany contract made or proposed to be madeby the Board shall disclose the nature of hisinterest at a meeting of the Board and such (c)disclosure shall be recorded in the minutesof the Board and the member shall not takepart in any deliberation or decision of theBoard with respect to that contract.

(5) Subject to the provisions ofsubsections (6) and (7) every member of the (d)Board, other than the member nominated bythe Minister in charge of the subject ofFinance, shall—

consultation with the Minister incharge of the subject of LocalGovernment,

any member appointed underparagraph (c) of subsection (1) maybe removed by the Minister inconsultation with the Minister incharge of the subject of Industries,and

any member nominated by theMinister in charge of the subject ofFinance may be removed by theMinister in charge of the subject ofFinance.

(a) hold office for a period of five years,and

(b) be eligible for reappointment:

Provided that a member appointed by theMinister to fill a vacancy in the office of amember of the Board, other than any suchvacancy as shall have occurred by virtue ofthe operation of subsection (6), shall, subjectto the provisions of subsection (7), holdoffice for the unexpired portion of the termof office of the member whom he succeeds.

(6) The term of office of three of the sixmembers of the Board first appointed by theMinister shall terminate at the expiry of aperiod of three years from the date ofappointment; and, for the purpose ofsecuring compliance with the precedingprovisions of this subsection, the Board shallat its first meeting under this Act determineby lot the three members appointed by theMinister whose term of office shall soterminate.

(7) Where in the interests of the efficientperformance of the functions or thedischarge of the duties of the Board, it isconsidered necessary to do so,—

(a) any member of the Board, appointedunder paragraph (a) of subsection(1), may be removed by theMinister,

(b) any member appointed underparagraph (b) of subsection (1) maybe removed by the Minister in

(8) The removal of any member of theBoard from office under subsection (7) shallnot be called in question in any court.

(9) A member of the Board who is not apublic officer may resign from the Board byletter addressed to the Minister.

(10) Where a member of the Boardbecomes, by reason of illness or otherinfirmity or absence from Sri Lanka,temporarily unable to perform the duties ofhis office, then, if he is a member appointedby the Minister, the Minister may appointany fit person to act in his place, and, if he isthe member nominated by the Minister incharge of the subject of Finance, thatMinister may nominate another officer ofthe General Treasury to act in his place.

(11) All or any of the members of theBoard may be paid such remuneration fromthe funds of the Board and shall be subjectto such conditions of service, as may bedetermined by the Minister with theconcurrence of the Minister in charge of thesubject of Finance.

(12) (a) The Chairman of the Boardshall preside at every meeting of the Boardat which he is present. In the absence of theChairman from any meeting of the Board,the Vice-Chairman shall preside at suchmeeting, and in the absence of both theChairman and the Vice-Chairman, amember chosen by the majority of themembers present shall preside at suchmeeting.

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(b) The Chairman or Vice-Chairman orother member of the Board, as the case maybe, who presides at any meeting of theBoard shall have, in addition to his ownvote, a casting vote.

(13) The quorum for any meeting of theBoard shall be three members of the Board,and, subject as aforesaid, the Board mayregulate its own procedure.

4. The Board may act notwithstanding avacancy among the members thereof.

5. (1) The Board shall, with theapproval of the Minister, appoint acompetent and experienced person asGeneral Manager of the Board.

(2) The General Manager shall, subjectto the general direction of the Board onmatters of policy, be charged with thedirection of the business of the Board, theorganization and execution of the powers,functions and duties of the Board, and theadministrative control of the employees ofthe Board.

(3) The General Manager may, with theapproval of the Board, delegate to any otheremployee of the Board such of his powers,functions or duties as he may, from time totime, consider necessary, and any employeeto whom any such powers, functions orduties are so delegated shall exercise themsubject to the general or special directions ofthe General Manager.

(4) The General Manager shall retirefrom office on reaching the age of sixtyyears:

Provided, however, that his term of officemay be extended thereafter by the Boardwith the prior approval of the Minister.

(5) The General Manager may not beremoved from office except for good andsufficient cause and without the priorapproval of the Minister.

6. (1) The Minister shall appoint aChairman, and may appoint a Vice-Chairman, of the Board from the membersof the Board.

(2) If the Chairman or the Vice-Chairman is, by reason of illness or otherinfirmity or absence from Sri Lanka,temporarily unable fo perform the duties ofhis office, the Minister may appoint one ofthe members of the Board to act in hisplace.

(3) The M i n i s t e r may , w i t h o u tass ign ing a r e a s o n , t e r m i n a t e theappointment of the Chairman, or the Vice-Chairman, of the Board. The termination ofthe appointment of the Chairman, or theVice-Chairman, of the Board shall not becalled in question in any court.

(4) Where the Chairman, or the Vice-Chairman, of the Board is not a publicofficer, he may resign the office of suchChairman or Vice-Chairman by letteraddressed to the Minister.

(5) Subject to the provisions ofsubsections (3) and (4), the term of office ofthe Chairman of the Board shall be theperiod of his membership of the Board, andthe term of office of the Vice-Chairman ofthe Board shall be the period of hismembership of the Board.

7. (1) The seal of the Board shall be inthe custody of the Board.

(2) The seal of the Board may be alteredin such manner as may be determined by theBoard.

(3) The seal of the Board shall not beaffixed to any instrument or documentexcept in the presence of two members ofthe Board both of whom shall sign theinstrument in token of their presence.

8. (1) The Minister may, afterconsultation with the Board, give to theBoard in writing general or specialdirections as to the performance of theduties and the exercise of the powers of theBoard in relation to matters which appearto him to affect the national interest, andthe Board shall give effect to suchdirections.

(2) The Minister may, from time totime, direct the Board in writing to furnishto him in such form as he may require,

Powers of theMinister inrelation to theBoard.

Board mayact despitevacancy.

GeneralManager ofthe Board,his powersand dutiesand theirdelegation.

Chairman andVice-Chairmanof the Board.

Seal of theBoard.

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Cap. 538] CEYLON ELECTRICITY BOARD

returns, accounts and other informationwith respect to the property and business ofthe Board, and the Board shall carry outevery such direction.

(3) The Minister may order all or any ofthe activities of the Board to be investigatedand reported upon by such person orpersons as he may specify and upon suchorder being made, the Board shall affordall such facilities and furnish all suchinformation as may be necessary to carryout such order.

9. All officers and servants of theBoard shall be deemed to be public servantswithin the meaning and for the purposes ofthe Penal Code.

10. The Board shall be deemed to be ascheduled institution within the meaning ofthe Bribery Act, and the provisions of thatAct shall be construed accordingly.

11. (1) It shall be the duty of theBoard, with effect from the date of thetransfer to the Board of the GovernmentElectrical Undertakings under section 18, todevelop and maintain an efficient, co-ordinated and economical system ofelectricity supply for the whole of SriLanka.

(2) For the purpose referred to insubsection (1), it shall be the duty of theBoard—

(a) to take over and carry on theGovernment Electrical Undertakingswith effect from the date of thetransfer to the Board of suchUndertakings;

(b) to take over and carry on anyelectrical undertakings transferredto the Board under section 26 ;

(c) to generate or acquire supplies ofelectricity;

(d) to construct, maintain and operatethe necessary works for thegeneration of electricity by allmeans;

(e) to construct, maintain and operatethe necessary works for the inter-connection of generating stations

and sub-stations and for thetransmission of electricity in bulkfrom generating stations and sub-stations to such places as may benecessary from time to time;

(f) to distribute and sell electricity inbulk or otherwise ; and

(g) to develop a sound, adequate anduniform electricity policy, and, forthat purpose, to control and utilizenational power resources.

(3) Nothing in this section shall beconstrued as imposing on the Board, eitherdirectly or indirectly, any form of duty orliability enforceable by proceedings beforeany court or tribunal to which the Boardwill not otherwise be subject.

12. The Board may exercise all or any of Powers ofthe following powers:— the Board.

(a) to purchase electrical energy in bulk;

(b) to carry out investigations and tocollect and record data concerningthe generation, distribution andutilization of power, and thedevelopment of power resources ;

(c) to maintain shops and showroomsfor the display, sale, or hire ofelectrical equipment, and toconduct displays, exhibitions andd e m o n s t r a t i o n s t h e r e o f , andgenerally to do all things incidentalto such sale and hire and for thepromotion and encouragement ofthe use of electricity ;

(d) to promote the standardization ofthe system of supply of all types ofelectrical fittings and equipments;

(e) to acquire, hold, take or give onlease or hire, mortgage, pledge orsell or otherwise dispose of, anyimmovable or movable property;

(f) to enter into and perform, eitherdirectly or through duly authorizedagents, all such contracts as may benecessary for the performance ofthe duties and the exercise of thepowers of the Board ;

Officers andservants ofBoard deemedto be publicservants.

Board deemedto be ascheduledinstitutionwithin themeaning ofBribery Act.Duties of theBoard.

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(g) to do anything necessary for thepurpose of advancing the skill ofpersons employed by the Board orthe efficiency of the equipment ofthe Board, or for improving themanner in which that equipment isoperated;

(h) to conduct research into mattersa f f e c t i n g t h e g e n e r a t i o n ,distribution, transmission, supplyand use of electricity;

(i) to provide facilities for trainingpersons required to carry out thework of the Board, including thearrangement by the Board with anybody or agency for such facilities ;

(j) to establish provident funds andpension funds, and to providewelfare and recreational facilities,houses, hostels and other likeaccommodation, for the personsemployed by the Board ;

(k) subject to the provisions of section 5and of Part III of this Act, to makerules in relation to the officers andservants of the Board, includingtheir appointment, promotion,remuneration, disciplinary control,conduct and the grant of leave tothem;

(l) to enter into joint schemes with anyGovernment Department or anybody approved by the Minister, forthe generation of electrical energy,the irrigation of lands, the controlof floods or other like purposes;

(m) to make rules in respect of theadministration of the affairs of theBoard; and

(n) to do all other things which, in theopinion of the Board, are necessaryto facilitate the proper carrying onof its business.

13. The Board may, from time to time,appoint persons who are qualified asengineers to be, or to act as, consultants to

Power ofthe Boardto superviseand controlgeneratingstationsinstalled forjoint schemes.

the Board and pay them such remunerationas it thinks proper.

14. It shall be the duty of the Board andthe Board shall have the power to superviseand control the design, construction andoperation of all electrical generatingstations, high voltage transmission lines,switching stations and other electricalinstallations installed for the purpose of anyjoint scheme entered into by the Boardunder the provisions of paragraph (l)of section 12 with any GovernmentDepartment or any body approved by theMinister:

Provided, however, that in the exercise ofsuch supervision and control, the Boardshall have due regard to the needs of suchDepartment or body,

15. Where any dispute arises betweenthe Board and any Government Departmentor body referred to in section 14 inconnexion with the exercise of the powers ofthe Board under that section, such disputeshall be referred to the Minister, and thedecision of the Minister thereon shall befinal.

16. No person or body other than theBoard shall, except with the writtenpermission of the Board given with theapproval of the Minister, undertake thetransmission of high voltage electricalenergy in bulk from one place to another inSri Lanka.

PART II

T R A N S F E R TO T H E B O A R D OF T H EGOVERNMENT ELECTRICAL UNDERTAKINGS

AND OTHER ELECTRICAL UNDERTAKINGS

*18. (1) As soon as may be convenientafter the coming into operation of this Act,the Minister shall, by Order. transfer theGovernment Electrical Undertakings to theBoard, and may, subject to the provisions of

Board toundertakeexclusivelytransmission ofhigh voltageelectricalenergy in bulk.

Disputesarising fromexercise ofpowers ofBoard undeisection 14.

Transfer to theBoard of theGovernmentElectricalUndertakings.

Consultingengineers.

* Proviso to section 16, referring to the repealed Anuradhapura Preservation Board, and section 17 are omitted.Amendments effected to the Electricity Act by section 17, read with the Schedule to this Act, are incorporated inthe Electricity Act.

f 1st November, 1969—transfer of Government Electrical Undertakings to Electricity Board—vide GazetteExtraordinary No. 14,868/5 of 1969-08-29 and Gazette Extraordinary No. 14,871/9 of 1969-09-14.

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subsection (4) of this section and theprovisions of section 39, by the same Orderor by a subsequent Order* provide—

for the transfer to, and the vestingin, the Board of any movable orimmovable property of the Staterequired for the purposes of theBoard;

(a)

for the transfer to the Board of allor any rights, obligations andliabilities relating to or connectedwith such Under takings and forthe adaptation or modification ofcontracts or other instruments forthe purpose of giving effect to thetransfer of such rights, obligationsand liabilities to the Board ;

for the adaptation or modification ofany written law to such extent asmay be necessary for the purpose ofenabling the Board to carry onsuch Undertakings in lieu of theGovernment;

(c)

for such financial adjustmentsbetween the Government and theBoard as may be necessary inconsequence of any such transfer;and

(e) for any other matter supplementaryto or consequential on the mattersaforesaid including the continuationof legal proceedings.

(2) Subject to the provisions ofsubsection (3) the provisions of any Ordermade by the Minister under subsection (1)may be amended or varied by him, fromtime to time, by a subsequent Order.

(3) No Order shall be made by theMinister under subsection (1) or subsection(2)-

(a) affecting any immovable property ofthe State without the concurrenceof the Minister to whom the subjectof State lands is for the time beingassigned ; or

(b) affecting any matter referred to inparagraph (d) of subsection (1)without the prior concurrence ofthe Minister in charge of the subjectof Finance.

(4) Subject to the provisions ofsubsection (5), every Order made by theMinister under this section shall be broughtbefore the Senate and the House ofRepresentatives or before Parliament, as thecase may be, by a motion that such Orderbe approved. Where such Order isapproved, notification of such Order shallbe published in the Gazette. Every suchOrder shall come into force on the date ofthe publication of such notification ofapproval or on such later date as may bespecified in the Order. Every such Ordershall, on its coming into force ashereinbefore provided, be as valid andeffectual as if it were herein enacted.

(5) The first Order made under thissection after the coming into operation ofthis Act, shall be published in the Gazette,and shall have effect from the date of suchpublication or from such later date as maybe specified in the Order.

19. (1) With effect from the date of thetransfer to the Board of the GovernmentElectrical Undertakings, no licence shall begranted under the Electricity Act except inconsultation with the Board.

(2) The preceding provisions of thissection shall have effect notwithstandinganything to the contrary in the ElectricityAct.

20. (1) Subject to the provisions ofsubsection (2), the Board and any localauthority who is a licensee within themeaning of the Electricity Act may, of theirown motion, jointly prepare a transferscheme, hereinafter in this Act referred to asa " voluntary transfer scheme", for thetransfer to the Board of the electricalundertakings carried on by such authority inits capacity as such licensee.

(2) The Board shall refer to arbitrationthrough the Minister, as hereinafterprovided, any dispute between the Board

Licences underthe ElectricityAct to begranted inconsultationwith Board.

Voluntarytransferscheme.

* Movable and immovable properly etc., vested in the Board with effect from 31st October, 1969 — vide GazetteExtraordinary No. 14,868/5 of 1969-08-29 and Gazette Extraordinary No. 14,871/9 of 1969-09-14.

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Pramod N Hettihewa

(b)

CEYLON ELECTRICITY BOARD [Cap. 538and the local authority upon any matter orquestion in connexion with the preparationof a voluntary transfer scheme. In suchpreparation the Board and the localauthority shall have regard to and be bound (b)by the decision given upon any dispute soreferred to arbitration.

21. The Board shall, whenever it isdirected so to do by the Minister undersection 22, prepare a transfer scheme,hereinafter in this Act referred to as a" compulsory transfer scheme", for thecompulsory transfer to the Board of theelectrical undertakings carried on by a localauthority in its capacity as a licensee underthe Electricity Act.

22. Where, as respects the electricalundertakings carried on by a local authorityin its capacity as a licensee within themeaning of the Electricity Act, the Ministeris satisfied, after consultation with theMinister in charge of the subject of LocalGovernment and after such inquiry as hemay deem necessary, at which such localauthority and the Board shall be given anopportunity of being heard,—

(a) that such authority has been guiltyo f n e g l e c t , d e f a u l t o rmismanagement in carrying on suchundertakings, or

(b) that such authority has defaulted inthe payment of the charges for thesupply of electricity by the Board,

the Minister may, with the concurrence ofthe Minister in charge of the subject ofLocal Government, issue a written directionto the Board to prepare a compulsorytransfer scheme for the transfer to the Boardof such undertakings.

23. (1) A transfer scheme preparedunder this Act in respect of the electricalundertakings carried on by a local authorityin its capacity as a licensee within themeaning of the Electricity Act shall providefor the transfer to the Board of suchundertakings, and may, subject to theprovisions of subsection (2), also provide—

(a) for the transfer to, and the vestingin, the Board of any movable or

immovable property of suchauthority used for the purposes ofsuch undertakings;

for the transfer to the Board of allor any rights, obligations andliabilities of such authority relatingto or connected with suchundertakings, and for theadaptation or modification ofcontracts or other instruments forthe purpose of giving effect to thetransfer of such rights, obligationsand liabilities from such authorityto the Board;

for the adaptation or modification ofany written law to such extent asmay be necessary for the purpose ofenabling the Board to carry on suchundertakings in lieu of suchauthority;

(c)

for such financial adjustmentsbetween such authority and theBoard as may be necessary inconsequence of any such transfer;and

(e) for any other matter supplementaryto or consequential on the mattersaforesaid including the continuationof legal proceedings.

(2) A voluntary transfer scheme shallprovide for the grant to the local authorityby the Board of compensation in respect ofthe transfer of the electrical undertakings ofsuch local authority to the Board.

(3) A voluntary transfer scheme shallbear the seal of the Board and the localauthority in token of its preparation by theBoard and such authority.

(4) A compulsory transfer scheme shallbear the seal of the Board in token of itspreparation by the Board.

24. (1) For the purposes of thepreparation of a transfer scheme under thisAct in respect of the electrical undertakingscarried on by a local authority in its

Compulsorytransferscheme.

Direction forpreparation ofcompulsorytransferscheme.

Powers ofBoard for thepurposes of thepreparation ofa transferscheme.

Contents oftransferscheme.

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Pramod N Hettihewa

(d)


capacity as a licensee within the meaning ofthe Electricity Act, the Board may—

(a) hold such inquiries and inspect suchmovable or immovable property ofthe local authority as the Boardmay consider necessary ; and

(b) direct such local authority, or anyofficer of such local authority, tof u r n i s h to t h e B o a r d s u c hparticulars and other information ast h e B o a r d m a y c o n s i d e rn e c e s s a r y r e l a t i n g to s u c hundertakings and other matters forwhich provision is to be made insuch scheme, and to produce forexamination books or documentscontaining such particulars orinformation.

(2) It shall be the duty of a localauthority or any officer of such localauthority to comply with any directionissued to such local authority or suchofficer, as the case may be, by the Boardunder subsection (1).

(3) Any officer of a local authority whowithout reasonable cause fails to complywith any direction issued to him undersubsection ( I ) , shall be guilty of an offenceand shall, on conviction after summarytrial before a Magistrate, be liable toimprisonment of either description for aperiod not exceeding one year, or to a finenot exceeding one thousand rupees, or toboth such imprisonment and fine.

25. ( 1 ) Upon the completion of thepreparation of a voluntary transfer schemeby the Board and any local authority underthis Act, the Board shall present suchscheme to the Minister for his approval, andupon such presentation the Minister shall,with the concurrence of the Minister incharge of the subject of Local Government,either approve such scheme withoutmodification, or approve such scheme withany such modifications as may be agreedupon by the Minister, the Board and suchauthority, or, in the absence of suchagreement, as may be decided upon areference by the Minister to arbitration, ashereinafter provided, of any matter whichcannot be so agreed upon.

(2) Upon the completion of thepreparation of a compulsory transfer schemeby the Board under this Act, the Board shallpresent such scheme to the Minister for hisapproval, and upon such presentation theMinister shall, with the concurrence of theM i n i s t e r i n c h a r g e o fthe subject of Local Government, eitherapprove such scheme without modification,or approve such scheme with any suchmodifications as the Minister may deemnecessary.

(3) In exercising his power of approvalin respect of any transfer scheme undersubsection (1) or subsection (2), the Ministershall have particular regard to the necessityof ensuring that the transfer scheme makesadequate provision in respect of the mattersspecified in section 23.

(4) The Minister, the Board and anylocal authority shall be bound by thedecision given on any matter referred toarbitration under subsection (1).

26. (1) Where a voluntary transferscheme has been approved by the Ministerunder this Act, the Minister shall prepareand publish in the Gazette, an Order,hereinafter in this Act referred to as a"voluntary transfer Order", embodying theprovisions of such scheme and such otherprovisions as the Minister may deemnecessary to give full force and effect to suchscheme.

(2) Where a compulsory transfer schemehas been approved by the Minister underthis Act, the Minister shall prepare andpublish in the Gazette an Order, hereinafterin this Act referred to as a " compulsorytransfer Order ", embodying the provisionsof such scheme and such other provisions asthe Minister may deem necessary to give fullforce and effect to such scheme.

(3) A voluntary transfer Order may,from time to time, be amended, by theMinister by Order published in the Gazette,in such manner and to such extent as may,after prior consultation with the Minister incharge of the subject of Local Government,be agreed upon by the Minister, the Boardand the local authority in respect of whoseelectrical under tak ings such Order was

Presentationof schemesto Ministerfor approval.

Orders to giveeffect totransferschemes.

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made, or, in the absence of such agreement,as may be decided upon a reference by theMinister to arbitration, as hereinafterprovided, of any matter which cannot be soagreed upon.

(4) The Minister, the Board and thelocal authority shall be bound by thedecision given on any matter referred toarbitration under subsection (3).

(5) A compulsory transfer Order may,from time to time, be amended by theMinister by Order published in the Gazette.

(6) Every Order made by the Ministerunder this section shall come into force onthe date of its publication in the Gazette oron such later date as may be specified in theOrder.

(7) Every Order made by the Ministerunder this section shall, as soon asconvenient after the date of its publicationin the Gazette, be laid before Parliament.

27. (1) With effect from the date of thetransfer to the Board of the electricalundertakings carried on by a local authorityin its capacity as a licensee within themeaning of the Electricity Act, that localauthority shall cease to be a licensee underthat Act.

(2) The provisions of subsection (1) shallhave effect notwithstanding the provisionsof the Electricity Act.

28. (1) Any dispute between the Boardand any local authority upon any matter orquestion relating to, or connected with, thegiving effect to, or the interpretation of, anyprovision of any voluntary transfer Order orcompulsory transfer Order which has comeinto force, shall be referred by the Board toarbitration through the Minister.

(2) The parties to any dispute referred toarbitration under subsection (1) shall bebound by the decision given upon sucharbitration.

29. ( I ) For the purpose of giving effectto any voluntary transfer Order orcompulsory transfer Order which has comeinto force, any officer of the Boardauthorized in writing in that behalf by the

Chairman of the Board may, subject to theprovisions of subsection (2), take possessionof any property transferred to and vested inthe Board by such Order.

(2) The officer referred to in subsection(1) shall, by notice in writing—

(a) inform the local authority that suchofficer intends to take possession ofsuch property for and on behalf ofthe Board on such date and at suchtime and place as shall be specifiedin the notice, and

(b) require an authorized agent of thelocal authority to be present on thedate and at the time and place sospecified and to assist such officerto take possession of such property.

(3) After any property has been takenpossession of by an officer of the Boardunder subsection (1), such officer shall senda certificate to the local authority to theeffect that he has taken possession of suchproperty.

(4) The notice required to be givenunder subsection (2) shall be deemed to begiven if it is sent by registered post to thelocal authority.

(5) Any person who fails, withoutreasonable cause, to comply with anyrequirement of a notice given undersubsection (2), shall be guilty of an offenceand shall, on conviction after summarytrial before a M agistrate, be liable toimprisonment of either description for aperiod not exceeding one year, or to a finenot exceeding one thousand rupees, or toboth such imprisonment and fine.

30. (1) Every person who prevents orobstructs any officer of the Board fromtaking possession of any property for andon behalf of the Board under section 29,shall be guilty of an offence and shall, onconviction after summary trial before aMagistrate, be liable to imprisonment ofeither description for a period not exceedingone year, or to a fine not exceeding onethousand rupees, or to both suchimprisonment and fine.

Prevention of,or obstructionto, takingpossession ofproperty forand on behalfof Board.

[§ 2, 29 of1979.]

[§ 2, 29 of1979.]

Effect of atransfer Order.

Reference ofcertain disputesto arbitration.

Procedure fortakingpossession ofproperty forand on behalfof Board.

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Can.538] CEYLON ELECTRICITY BOARD

(2) Where any officer of the Boardauthorized under section 29 to takepossession of any property for and on behalfof the Board, is unable or apprehends thathe will be unable to take possession of suchproperty because of any obstruction orresistance that has been or is likely to beoffered, he shall, on making an applicationin that behalf to the Magistrate's Courthaving jurisdiction over the place where thatproperty is kept or situated, be entitled toan order of the court directing the Fiscal todeliver possession of that property to himfor and on behalf of the Board.

(3) Where an order under subsection (2)is issued to the Fiscal by a Magistrate'sCourt, he shall forthwith execute that orderand shall in writing report to the court themanner in which that order was executed.

(4) For the purpose of executing anorder issued by a Magistrate's Court undersubsection (2), the Fiscal or any personacting under his direction may use suchforce as may be necessary to enter any placewhere any movable property to which theorder relates is kept and seize such movableproperty, or to enter any land, building orother structure to which that order relatesand to eject any person in occupationthereof, and to deliver possession of suchmovable property, land, building or otherstructure to the person who is authorized totake possession thereof for and on behalf ofthe Board.

PART III

STAFF OF THE BOARD

31. Subject to the provisions of section5, the Board may appoint to its staff suchofficers and servants as the Board may deemnecessary, and determine their terms ofremuneration and other conditions ofemployment.

31A. (1) Every public officer of theDepartment, not being any such officer in atransferable service of the Government,shall, before the date on which theGovernment Electrical Undertakings aretransferred to the Board under section 18 (inthis Act referred to as the " transfer date "),

give notice in writing to the GeneralManager of the Department that suchofficer intends, on that date,—

(a) to continue in office as a publicofficer of the Department and toperform, so long as he so continues,work for and on behalf of theBoard in his capacity as suchofficer; or

(b) to retire from the public service andbecome an employee of the Boardif, being a pensionable officer of theDepartment, he would on that datehave had not less than ten years'pensionable service; or

(c) to leave the public service andbecome an employee of the Boardif, being a pensionable officer ofthe Department, he would on thatdate have less than ten years'pensionable service; or

(d) to leave the public service andbecome an employee of the Board ifhe is a contributor to the PublicService Provident Fund establishedunder the Public Service ProvidentFund Ordinance; or

(e) to both leave the public service andnot become an employee of theBoard.

(2) A notice given to the GeneralManager of the Department before thetransfer date by a public officer of theDepartment under subsection (1) shall befinal.

31B. ( 1 ) Any public officer of theDepartment who does not give the noticerequired by subsection (1) of section 31 Abefore the transfer date, or gives such noticeunder paragraph (a) of that subsection, shallcontinue in office as such officer on andafter that date and, for so long as he socontinues in office, shall perform work forand on behalf of the Board in his capacity assuch officer and be subject to the sameconditions of service as he was subject towhile doing work for the Department in hiscapacity as such officer, and accordinglythe ru les made by the Publ ic ServiceCommission, and the AdministrativeRegulations, the Financial Regulations, and

Effect of notgiving noticeunder section3 l A ( l ) o rgiving suchnotice undersection3lA(l) ( a ) .[§2 ,31 of1969.]

Appointmentsto the staff ofthe Board.

Notice requiredto be given bycertain publicofficers of theDepartmentbefore thetransfer date.[§2,31 of1969.]

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the Treasury Circulars of the Government,shall continue to apply to and in relation tosuch officer.

(2) Where any public officer of theDepartment continues in office as suchofficer on and after the transfer dateperforming work for and on behalf of theBoard in his capacity as such officer, theBoard shall pay out of the funds of theBoard to the Deputy Secretary to theTreasury to be credited to the ConsolidatedFund, such sum not exceeding such amountas may be determined by the Minister incharge of the subject of Finance as sufficientto cover the salary, and other expensesincluding pension or provident fundcontributions, payable by the Governmentin respect of such officer.

(3) In the event of any conflict orinconsistency between the provisions ofsubsection (1) and any other provisions ofthis Act, the provisions of that subsectionshall to the extent of such conflict orinconsistency prevail over such otherprovisions.

31C. (1) Any public officer of theDepartment who gives notice under any ofthe paragraphs (b) to (e) of subsection (1) ofsection 3lA before the transfer date shall,—

(a) if such notice is so given by himunder paragraph (b) of thatsubsection, become an employee ofthe Board on that date and shall,subject to the provisions of section32, be eligible for such a pensionunder the Minutes on Pensions aswould have been awarded to himhad he retired from the publicservice on the ground of abolitionof office on that date ; or

(b) if such notice is so given by himunder paragraph (c) of thatsubsection, become an employee ofthe Board on that date and shall bedeemed to have left the publicservice on that date and shall,subject to the provisions of section32, be eligible for such an awardunder the Minutes on Pensions aswould have been awarded to him if

he had left the public service on theground of abolition of office onthat date; or

(c) if such notice is so given by himunder paragraph (d) of thatsubsection, become an employeeof the Board on that date, andshall be deemed for the purposesof the Public Service ProvidentFund to have left the service ofthe G o v e r n m e n t upon thedetermination of contract with thec o n s e n t of t h e G o v e r n m e n totherwise than by dismissal; or

(d) if such notice is so given by himunder paragraph (e) of thatsubsection, and—

(i) if he is a public officer of theclass or description referred toin paragraph (b) of thatsubsection, be deemed to haveretired from the public serviceon that date and shall beeligible for such a pensionunder the Minutes onPensions as would have beenawarded to him had he retiredfrom the public service on theground of abolition of officeon that date, or

(ii) if he is such an officer of theclass or description referred toin paragraph (c) of thatsubsection, be deemed to haveleft the public service on thatdate and shall be eligible forsuch an award under theMinutes on Pensions as wouldhave been awarded to him ifhe had left the public serviceon the ground of abolition ofoffice on that date, or

(iii) if he is any such public officerof the class or descriptionreferred to in paragraph (d) ofthat subsection, be deemed forthe purposes of the PublicService Provident FundOrdinance to have left theservice of the Governmentupon the determination of

Effect of anotice givenunder any ofthe paragraphs(b) to (e) ofsection 3 l A (1).[§2,31 of1969,]

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contract with the consent ofthe Government otherwisethan by dismissal.

(2) In the event of any conflict orinconsistency between the provisions ofsubsection (1) and any other provisions ofthis Act, the provisions of that subsectionshall to the extent of such conflict orinconsistency prevail over such otherprovisions.

32. The following provisions shall applyto and in relation to any employee of theBoard who became such an employee on thetransfer date by virtue of the operation ofthe provisions of section 31c :—

(1) Such employee shall be employed bythe Board on such terms andconditions as may be agreed uponby such employee and the Board:

Provided, however, that suchterms and conditions shall be notless favourable than the terms andconditions on which such employeewas previously employed in theDepartment.

(2) If on the transfer date, suchemployee was a public officer of theDepartment holding a post declaredto be pensionable and who had lessthan ten and not less than eightyears' pensionable service, then,—

(a) he shall be deemed, for thepurposes only of the Minuteson Pensions, to be holding thepost in the Department thathe held on the transfer dateuntil such period of time as,when added to his pensionableservice under the Government,makes an aggregate of tenyears' pensionable service(service under the Board beingcounted as pensionable serviceunder the Government forthe computation of suchaggregate);

(b) in respect of him the Boardshall pay out of the funds ofthe Board to the Deputy

Secretary to the Treasury tobe c r e d i t e d t o t h eConsolidated Fund for everycomplete month of the periodof service during which he isdeemed for the purposes onlyof the Minutes on Pensions tobe holding the post in theDepartment that he held onthe transfer date such sum asmay be determined by theMinister in charge of thesubject of Finance; and

(c) at the end of such period heshall be deemed to haveretired from the public serviceand shall be eligible for such apension under the Minutes onPensions as would have beenawarded to him had he retiredfrom the public service on theground of abolition of officeon the termination of suchperiod.

(3) Notwithstanding—

(a) the provisions of section 31C and thepreceding provisions of thissection; and

(b) anything to the contrary in any otherwritten law,

where a public officer of the Departmentbecomes an employee of the Board by virtueof the operation of the provisions of section31c,—

(a) if such officer is eligible for apension and elects to draw his fullpension, he shall not be paid suchpension during the period of hisemployment with the Board ;

(b) if such officer is eligible for apension and elects to draw agratuity in partial commutation ofone-fourth part of his pension inaccordance with the provisions ofsection 2A (1) (i) of the Minutes onPensions—

(i) such gratuity shall not be paidto him but shall be credited tohis account in a providentfund of the Board establishedunder section 12 (j) ;

Specialprovisionsapplicable tocertainemployees ofthe Board.[§3.31 of1969.]

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(ii) the remaining three-fourthspart of the pension payable tohim under the said Minutesshall not be paid to himduring the period of hisemployment by the Board;and

(iii) for the purposes of thecomputation of the period of"twelve years and sixmonths* from the date of hisret i rement " referred to insection 2A (1) (ii) of the saidMinutes, the date of hisretirement shall be deemed tobe t h e l a s t d a t e of h i semployment under the Board ;

(c) if such officer is eligible for agratuity and not a pension underthe Minutes on Pensions suchgratuity shall not be paid to himbut shall be credited to his accountin a provident fund of the Boardestablished under section 12 (j);and

(d) if such officer is eligible for thereceipt of any sum of money underthe Public Service Provident FundOrdinance, such sum shall not bepaid to him but shall be credited tohis account in a provident fund ofthe Board established under section12(j).

32A. (1) Any person who on and afterthe transfer date continues in office as apublic officer of the Department performingwork for and on behalf of the Board in hiscapacity as such officer may at any time bepermanently appointed to the staff of theBoard.

(2) Where any public officer ispermanently appointed to the staff of theBoard under subsection ( 1 ) , the provisionsof subsection (3) of section 9 of the MotorTransport Act, No. 48 of 1957, shall,mutatis mutandis, apply to and in relationto him.

33. Where the electrical undertakingscarried on by a local authority in itscapacity as a licensee under the Electricity.Act are transferred to the Board under thisAct, the provisions of section 32 shall,mutatis mutandis, apply to and in relationto all officers and servants of the localauthority, including members of the LocalGovernment Service, subject to suchmodifications, alterations or additions asmay be prescribed by regulation made inthat behalf by the Minister in consultationwith the Minister in charge of the subject ofLocal Government:

Provided, however, that the applicationof the provisions of section 32 shall not beconstrued to, and any regulation made asaforesaid shall not, adversely affect theterms of service of any public officeremployed by the Board under the saidprovisions.

34. (1) At the request of the Board,any public officer, other than an officerreferred to in section 31 A, may, with theconsent of that officer and of the Secretaryto the Treasury, be temporarily appointedto the staff of the Board for such period asmay be determined by the Board with likeconsent, or be permanently appointed tosuch staff.

(2) Where any public officer istemporarily appointed to the staff of theBoard under subsection (1), the provisionsof subsection (2) of section 9 of the MotorTransport Act, No. 48 of !957,f shall,mutatis mutandis, apply to and in relationto him,

(3) Where any public officer ispermanently appointed to the staff of theBoard under subsection ( 1 ) , the provisionsof subsection (3) of section 9 of the MotorTransport Act, No. 48 of 1957,f shall,mutatis mutandis, apply to and in relationto him.

(4) At the request of the Board, anyofficer or servant of any local authority(whether he be a member of the LocalGovernment Service or not), other than anofficer or servant referred to in section 33

Employment ofpersonnel incase of transferof electricalundertakingsof a localauthority tothe Board.

Appointmentof publicofficers andofficers andservants oflocalauthorities,other thanthose referredto in sections31 A and 33. tothe staff of theBoard.

Specialprovisionsapplicable tocertain personswho cuntinueas publicofficers of theDepartment onand after thetransfer datewhileperformingwork for andon behalf ofthe Board intheir capacityas suchofficers.[§4,31 of1969.]

* Subsequently changed into ten years by Gazette No. 316 of 1978-05-05.f Repealed by Law No. 19 of 1978.

XVII/43


may, with the consent of such officer orservant and the local authority or the LocalGovernment Service Advisory Board, as thecase may be, be temporarily appointed tothe staff of the Board for such period as maybe determined by the Board with likeconsent, or be permanently appointed tosuch staff, on such terms and conditionsincluding those relating to pension orprovident fund rights as may be agreed uponby the Board and that Advisory Board orauthority.

(5) Where an officer or servant of anylocal authority, whether he be a member ofthe Local Government Service or not, istemporarily appointed to the staff of theBoard under subsection (4), he shall besubject to the same disciplinary control asany other member of the staff of the Board.

35. Where any person has entered into acontract with the Government by which hehas agreed to serve the Government for aspecified period, any period of service to theBoard by that person shall be regarded asservice to the Government for the purposeof discharging the obligations of suchcontract.

36. Notwithstanding anything to thecontrary in any other law, where any personwho is already in receipt of a pension fromthe Government or from any local authorityis employed by the Board he shall not bepaid such pension during the period of hisemployment by the Board.

37. For the purposes of this Part—

" pensionable public officer" means apublic officer who—

(a) holds a post declared to bea pens ionable post undersection 2 of the Minutes onPensions; and

(b) who does not belong to atransferable service of theGovernment;

"pensionable service" means serviceunder the Government which isreckonable for pension under theMinutes on Pensions.

General duty ofthe Boardin financialmatters.

39. Notwithstanding anything to the Transfer of

PART IV

FINANCE, AUDITING AND ANNUAL REPORT

38. It shall be the duty of the Board soto exercise its powers and perform itsfunctions under this Act as to secure that thetotal revenues of the Board are sufficient tomeet its total outgoings properly chargeableto revenue account including depreciationand interest on capital, and to meet areasonable proportion of the cost of thedevelopment of the services of the Board.

contrary in any other written law—

(a) the balance lying to the credit of theReserve, Renewals and ExtensionsFund and the balance lying to thecredit of the Net Revenue Accountof the Government ElectricalUndertakings shall, with effect fromthe date of the transfer to the Boardof s u c h U n d e r t a k i n g s , betransferred to the Board, and theBoard shall place such balances inan appropriate reserve fund orfunds established by the Board withthe General Treasury;

(b) all sums due to the Governmentfrom the Department in respectof moneys advanced by theGovernment (other than moneysadvanced f rom loans obtainedb y t h e G o v e r n m e n t f r o mthe I n t e r n a t i o n a l Bank fo rReconstruction and Developmentupon any agreement referred to inparagraph (c) of this section orupon any other agreement) to theDepartment for expenditure oncapital works shall, with effect fromthe date of the transfer to the Boardof the Government ElectricalUndertakings, be deemed to be aninvestment of equity capital in theBoard by the Government, and theBoard shall pay to the Governmenta dividend on such equity capital atsuch rate not exceeding eight per

certain moneysto the Boardand investmentof equitycapital byGovernment inthe Board andthe payment ofcertain moneysto theGovernment bythe Board.

Service to theBoard to beregarded asservice to theGovernmentfor thepurposes ofcontracts toserve theGovernment.

Employmentby Board ofpersons alreadyin receipt ofpensions.

Interpretation.

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Grant to theBoard from theConsolidatedFund.

Borrowingpowers ofBoard.

centum per annum as the Ministerin charge of the subject of Financemay in consultation with theMinister determine;

(c) the payments by way of interest andrepayment of capi ta l that haveto be made by the Governmentto the International Bank forReconstruction and Developmentupon agreement No. 101 CE datedJuly 9, 1954, agreement No. 209 CEdated September 17, 1958, andagreement No. 283 CE dated June6, 1961, entered into between theGovernment and that Bank shall,with effect from the date of thetransfer to the Board of theGovernment Electrical Undertakings,be made by the Board to theGovernment as such payments faitdue; and

(d) the payment of all sums by way ofinterest and repayment of capitalthat have to be made by theGovernment to the InternationalCo-operation Administration andto the Export Credit InsuranceCorporation of Canada shall, witheffect from the date of the transferto the Board of the GovernmentElectrical Undertakings, be madeby the Board to the Government assuch payments fall due.

40. As soon as practicable after thecoming into operation of this Act, theremay be granted to the Board, with the priorapproval of the House of Representatives,from the Consolidated Fund such sum ofmoney and on such terms as may bedetermined by the Minister in charge of thesubject of Finance in consultation with theMinister.

41. (1) The Board may, with theconsent of the Minister, or in accordancewith the terms of any general authoritygiven by him, borrow temporarily, by wayof overdraft or otherwise, such sums as theBoard may r equ i r e for mee t i ng i t s

obligations or discharging its duties underthis Act:

Provided that the aggregate of theamounts outstanding in respect of anytemporary loans raised by the Board underthis subsection shall not at any time exceedsuch sum as may be determined by theMinister in consultation with the Minister incharge of the subject of Finance.

(2) The Board may, with the consent ofthe Minister given with the concurrence ofthe Minister in charge of the subject ofFinance, borrow money, otherwise than byway of a temporary loan under subsection(1) , for all or any of the followingpurposes:—

(a) the provision of working capital;

(b) the provision of money for meetingany expenses incurred in connexionwith any permanent work or otherthing, the cost of which is properlychargeable to capital account;

(c) the redemption of any stock issuedor any loan raised by the Board;

(d) the provision of money necessary forthe making of any payment to anylocal authority under the provisionsof this Act; and

(e) any other purpose for which capitalmoneys are properly applicable,including the repayment of anymoney temporarily borrowed undersubsection (1).

(3) The Board may, with the consent ofthe Minister given with the concurrence ofthe Minister in charge of the subject ofFinance, borrow money for any of thepurposes mentioned in subsection (2) byway of loans from the Government, by theissue of Ceylon Electricity Stock undersection 43, or in any other mannerwhatsoever.

42. (1) The Government is herebyauthorized to guarantee, on such terms andconditions as the Government maydetermine, loans raised by the Board fromthe International Bank for Reconstructionand Development, or from any otherin te rna t iona l or foreign organization

Board mayborrow fromtheInternationalBank forReconstructionandDevelopment,&c.

XVII/45


approved by the Government. The loansauthorized to be guaranteed under thissubsection may be denominated in foreigncurrency.

(2) All sums payable by the Governmentunder any guarantee given under subsection(1) are hereby charged on the ConsolidatedFund.

(3) All sums payable by the Board inrespect of principal, interest and othercharges on any loan to the Board from theInternational Bank for Reconstructionand Development or from any otherinternational or foreign organizationapproved by the Government, or by theGovernment under any guarantee givenunder subsection (1) shall, notwithstandinganything to the contrary in any law of SriLanka, be paid—

(a) without a deduction for, and freefrom, any taxes, duties or fees nowor hereafter imposed by or underany law of Sri Lanka, and

(b) free from all restrictions now orhereafter imposed by or under anylaw of Sri Lanka:

Provided, however, that the precedingprovisions of this subsection shall not applyto any taxes, duties, fees or restrictionsupon payments under any bond orpromissory note to a holder thereof otherthan the International Bank forReconstruction and Development or anyother international or foreign organizationapproved by the Government when suchbond or promissory note is beneficiallyowned by an individual or a corporationresident in Sri Lanka.

(4) For the purposes of subsection (3),the question whether an individual or acorporation is or is not resident in SriLanka shall be determined in accordancewith the provisions of section 54 of theInland Revenue Act, No. 4 of 1963, orsection 67 of the Inland Revenue Act(No. 28 of 1979).

(5) Every guarantee agreement betweenthe Government and the International Bankfor Reconstruction and Development or anyother international or foreign organization

approved by the Government pursuant tothis Act and every guarantee given by theGovernment pursuant to any such guaranteeagreement shall, notwithstanding anythingto the contrary in any law of Sri Lanka, bevalid and enforceable in accordance withtheir respective terms.

(6) In the case of any loan made to theBoard by the International Bank forReconstruction and Development or anyother international or foreign organizationapproved by the Government andguaranteed by the Government, theGovernment shall bear any loss, and beentitled to any profit, resulting from anyrevaluation of the Sri Lanka rupee inrelation to the currency or currencies inwhich that loan is expressed.

The amount of every such loss is herebycharged on the Consolidated Fund.

(7) The President, or any personauthorized in that behalf by the Presidentby instrument under his hand, is herebyempowered, on behalf of the Government,to sign any guarantee agreement betweenthe Government and the International Bankfor Reconstruction and Development or anyother international or foreign organizationapproved by the Government.

(8) Notwithstanding anything in anyother written law, no agreement, bond orother document executed by the Board inrespect of any loan which may be raised bythe Board from the International Bank forReconstruction and Development, or fromany o t h e r i n t e r n a t i o n a l or f o r e i g norganization approved by the Government,shall be subject to, or be charged with, anystamp duty or duties whatsoever.

(9) As soon as possible after the end ofeach financial year, the Minister in chargeof the subject of Finance shall cause to belaid before Parliament a report containing astatement of every loan, bond and guaranteeentered into under this section, during thecourse of that financial year.

43. (1) The Board may create and issueany stock required for the purpose ofexercising the powers of the Board undersubsection (3) of section 41, and the stock socreated and issued is hereinafter in this Actreferred to as " Ceylon Electricity Stock ".

CeylonElectricityStock.

XVII/46


(2) Ceylon Electricity Stock shall beissued, transferred, dealt with, redeemedand cancelled in accordance with such termsas may be determined by the Board with theapproval of the Minister given with theconcurrence of the Minister in charge of thesubject of Finance.

44. (1) The Minister in charge of thesubject of Finance may, with theconcurrence of the Minister, guarantee therepayment of, and the payment of theinterest on, any Ceylon Electricity Stockcreated and issued under section 43.

(2) Any sum required for the fulfilmentof a guarantee provided under subsection(1) may, with the prior approval ofParliament, be paid out of the ConsolidatedFund.

(3) A n y sum p a i d out of theConsolidated Fund in fulf i lment of aguarantee provided under subsection (1)shall be repaid, together with interestthereon at such rate as the Minister incharge of the subject of Finance may withthe concurrence of the Minister determine,by the Board in such manner and over suchperiod as the Minister in charge of thesubject of Finance may with suchconcurrence determine.

45. (1) Immediately after a guaranteeis provided under section 44, the Minister incharge of the subject of Finance shall lay orcause to be laid a statement of the guaranteebefore Parliament.

(2) Where any sum is paid under section44, out of the Consolidated Fund infulfilment of any guarantee provided underthat section, the Minister in charge of thesubject of Finance shall forthwith lay orcause to be laid before Parliament astatement that such sum has been paid.

46. Any funds of the Board which arenot immediately required for the purpose ofthe business of the Board shall be investedby the Board in such manner as the Ministermay, with the concurrence of the Minister incharge of the subject of Finance, determine,

47. (1) The Board may establish andmaintain with the General Treasury—

(a) an insurance reserve to cover thei n s u r a n c e of m o v a b l e and

immovable property of the Boardand to meet third-party risks andliabilities arising under theW o r k m e n ' s C o m p e n s a t i o nOrdinance;

(b) a sinking fund in respect of therepayment of loans taken by theBoard ;

(c) a redemption fund in respect of theredemption of Ceylon ElectricityStock; and

(d) any other reserve fund that theBoard may consider necessary.

(2) The Board shall establish andmaintain with the General Treasury—

(a) a depreciation reserve to cover thedepreciation of the movable andimmovable property of the Board ;and

(b) a general reserve for the purposeof financing capital works fromrevenue moneys, ensuring thefinancial stability of the Board, andfor such other purposes as theBoard may, from time to time,determine.

(3) The sums to be carried, from time totime, to the credit of each of the reservesand funds specified in subsections (1) and(2), shall be such sums as may bedetermined by the Board.

(4) The moneys comprised in thereserves and funds referred to in subsections(1) and (2) may be applied in such manneras the Board may determine.

48. (1) The revenue of the Board inany year shall be applied in defraying thefollowing charges:—

(a) the working and establishmentexpenses (including allocations tothe insurance reserve and thedepreciation reserve), in connexionwith the exercise and performanceof the powers and duties of theBoard, properly chargeable torevenue account ;

Governmentguarantee.

Minister incharge ofFinance toinformParliamentaboutguarantee.

Investment ofthe funds ofthe Board.

Reserves.

Application ofthe revenue ofthe Board.

XVII/47


(b) the interest on any temporary loanraised by the board ;

(c) any sums required on account of thepayments that have to be made tothe Government under paragraph(c) of section 39;

(d) the interest due on Ceylon ElectricityStock issued under section 43 ;

(e) the interest on and the repayment ofthe principal of any loan from theGovernment or any other source;and

(f) any sums required on account of thepayment of a dividend underparagraph (d) of section 39.

(2) The surplus of the revenue of theBoard in any year which remains after thecharges mentioned in subsection (1) havebeen defrayed, shall be allocated to any oneor more of the reserves and fundsestablished under section 47.

49. (1) The Board shall cause properaccounts of its income and expenditure andof all its other transactions to be kept in aform which shall conform to the bestcommercial standards, and shall prepare anannual statement of accounts and statisticsrelating to its business in such form andcontaining such particulars as the Minister,with the concurrence of the Minister incharge of the subject of Finance, may fromtime to time specify. The financial year ofthe Board shall commence on such date asmay be determined by the Board.*

(2) The accounts of the Board for eachfinancial year shall be audited by theAuditor-General. For the purpose ofassisting him in the audit of such accounts,the Auditor-General may employ theservices of any qualified auditor or auditorswho shall act under his direction andcontrol.

(3) For the purpose of meeting theexpenses incurred by him in the audit of theaccounts of the Board, the Auditor-Generalsha l l be paid by the Board such

remuneration as the Minister may, with theconcurrence of the Minister in charge ofthe subject of Finance, determine. Anyremuneration received from the Board bythe Auditor-General shall, after deductingany sums paid by him to any qualifiedauditor employed by him for the purposesof such audit, be credited to theConsolidated Fund.

(4) The Auditor-General shall examinethe accounts of the Board and furnish areport—

(a) stating whether he ha? or has notobtained all the information andexplanations required by him;

(b) stating whether the accounts referredto in the report are properly drawnup so as to exhibit a true and fairview of the affairs of the Board;and

(c) drawing attention to any item in theaccounts which in his opinion maybe of interest to Parliament in anyexamination of the activities andaccounts of the Board.

(5) The Auditor-General shall transmithis report to the Board.

(6) For the purposes of this section, theexpression " qualified auditor " means—

(a) an individual who, being a memberof the Institute of CharteredAccountants of Sri Lanka, or ofany other Institute established bylaw, possesses a certificate topractise as an Accountant issued bythe Council of such Institute ; or

(b) a firm of Accountants each of theresident partners of which, beinga member of the Institute ofChartered Accountants of SriLanka or of any other Instituteestablished by law, possesses acertificate to practise as anAccountant issued by the Councilof such Institute.

Accounts ofthe Board andaudit of suchaccounts.

* The Financial Year has since been fixed as commencing on the 1st day of January of each year — See Sections23 and 24 of the Finance Act, No. 38 of 1971.

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CEYLON ELECTRICITY BOARD [Cap.538

50. The Auditor-General and anyperson assisting him in the audit of theaccounts of the Board shall have access toall such books, deeds, contracts, accounts,vouchers and other documents of the Boardas the Auditor-General may considernecessary for the purposes of such audit,and shall be furnished by the Board or itsofficers with such information within theirknowledge as may be required for suchpurposes.

51. (1) The Board shall, as soon aspossible, after the end of each financial yearof the Board, make to the Minister a reporton the exercise and performance by theBoard of its powers and duties during thatyear and on its policy and programme. Suchreport for any year shall set out anydirection given by the Minister to the Boardduring that year unless the Minister hasnotified to the Board his opinion that it isagainst the interest of national security todo so. The Minister shall lay a copy of suchreport before Parliament.

(2) The Board shall, on receipt of theAuditor-General's report in each year,transmit to the Minister—

(a) a copy of such report; and

(b) a copy of the statement of accountsand statistics prepared undersubsection (1) of section 49.

(3) The Minister shall lay copies of thereport and statement referred to insubsection (2) before Parliament.

(4) The Board shall cause copies of thereport of the Board-and of the Auditor-General's report and the statement ofaccounts and statistics referred to insubsection (2) to be printed at the expenseof the Board and to be made available forpurchase by the public at such price as shallbe determined by the Board.

PART V

TARIFFS AND CHARGES

52. (1) Subject to the provisions of thisAct, the prices to be charged by the Boardfor the supply of electrical energy by the

Board shall be in accordance with suchtariffs as may be fixed, from time to time,by the Board with the approval of theGovernment:

Provided, however, that—

(i) the tariffs in force—

(a) immediately prior to the dateof the transfer to the Board ofthe Government ElectricalUndertakings, in any area ofsupply of such Undertakings,or

(b) immediately prior to the dateof the transfer to the Board ofthe electrical undertakingscarried on by a local authorityin its capacity as a licenseewithin the meaning of theElectricity Act, in theauthorized area of supply ofsuch licensee,

shall continue in force and bedeemed to be tariffs fixed by theBoard under this section untilvaried or replaced by tariffs fixedby the Board in accordance withthis section; and

(ii) the preceding provisions of thissection shall not preclude the Boardfrom charging special prices byagreement with any person or body.

(2) Before any tariffs are fixed by theBoard under subsection (1), the Board shall,by notification published in the Gazette,give publicity to such tariffs and a period ofone month shall be fixed by the Boardto enable any person or body or localauthority to make representations relatingto such tariffs.

(3) The tariffs fixed by the Board undersubsection (1)—

(a) shall be published in the Gazette andin such other manner as mayappear to the Board best calculatedto give publicity to such tariffs;

Powers ofAuditor-General andhis assistants.

Report of theBoard andcopies ofAuditor-General'sreport andstatement ofaccounts andstatistics to besent to theMinister andlaid beforeParliament,and copies ofsuch reportsand statisticsto be madeavailable forpurchase bythe public.

Board to fixtariffs andcharges.

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No unduepreference tobe shown infixing tariffsand makingagreementsundersection 52.

Recovery ofelectricitysupply chargefrom a localauthority.

(b) shall come into force on the date oftheir publication in the Gazette oron such later date as may bespecified therein; and

(c) may include rent and other chargesin respect of electrical fittingsprovided by the Board.

53. The Board, in fixing tariffs andmaking agreements under section 52, shallnot show undue preference as betweenpersons similarly placed, having regard tothe place and time of the supply of electricalenergy, the quantity of such energysupplied, the consumer load and powerfactor and the purpose for which suchsupply is taken.

54. If any question arises as to whetheror not a tariff is applicable in any case, or asto which tariff is so applicable, the Boardshall determine that question, and suchdetermination shall be final and conclusive.

55. (1) In this section, the expression" electricity supply charge " means the sumpayable to the Board for electrical energysupplied by the Board.

(2) (a) The electricity supply charge ofa local authority in respect of any monthshall be paid by such authority—

(i) within a period of thirty days fromthe date of the receipt by suchauthority of a bill relating to suchcharge from the Board, or

(ii) where such authority, upon receiptof such bill, disputes, undersubsection (3), a part or the wholeof the amount of such charge—

(aa) in respect of the undisputedpart of such bill, within aperiod of thirty days from thedate of receipt of the bill; and

(bb) in respect of the disputed partof such bill, within a period ofthirty days from the date ofthe final determination ofsuch disputed part ashereinafter provided.

(b) A bill relating to the electricitysupply charge sent by the Board to a localauthority shall be dispatched by registeredpost and shall be deemed to have beenreceived by that authority on the day onwhich that bill would have been delivered inthe ordinary course of post.

(3) Where a local authority receives abill from the Board for the payment of theelectricity supply charge of such authority inrespect of any month, such authority may,within a period of twenty-one days from thedate of receipt by that authority of such bill,dispute a part or the whole of the amount ofsuch charge by a written communication tot h a t e f f e c t to t h e B o a r d . Suchcommunication shall specify the portion ofsuch amount so disputed and the reasonstherefor.

(4) No local authority shall be entitledto dispute the amount of the electricitysupply charge of such authority in respect ofany month except under and in accordancewith subsection (3).

(5) Where a part or the whole of theamount of the electricity supply charge ofany local authority in respect of any monthis disputed by such authority, such disputedpart of the amount —

(a) shall be finally determined byagreement between the Board andsuch authority, or

(b) in the absence of such agreementwithin a period of thir ty days fromthe date of the receipt by the Boardof a communication as to suchdispute from such authority undersubsection (3), shall be finallydetermined by arbitration, and forthat purpose, the Board is herebyrequired and authorized to refer thedispute to arbitration through theMinister.

(6) A final determination as to thedisputed part of the amount of theelectricity supply charge of any localauthority, whether by agreement or onarbitration, shall be binding on the Boardand such authority.

(7) Where the electricity supply chargeof a local authority in respect of any monthis not paid by such authority to the Board

Board todetermine tariffin cases ofdoubt.

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within the period it is so required to be paidunder subsection (2), the Chairman of theBoard shall certify in writing the amountwhich is due from such authority onaccount of such charge that has not been sopaid.

(8) Upon the production of a certificateissued by the Chairman of the Board undersubsection (7) before any District Court orPrimary Court within whose jurisdiction thewhole or any part of the area ofadministration of the local authority inrespect of which such certificate is issued issituated, according as the sum specified insuch certificate exceeds or does not exceedone thousand five hundred rupees, the courtshall direct a writ of execution to issue tothe Fiscal authorizing him and requiringhim to seize and sell all or any of theproperty movable or immovable of suchauthority or such part thereof as may benecessary for the recovery of that sum, andthe provisions of sections 226 to 297 of theCivil Procedure Code* shall, mutatismutandis, apply to the execution of suchwrit and to such seizure and sale.

(9) Where the Chairman of the Boardissues the certificate referred to insubsection (7), he shall in writing notify thelocal authority specified in the certificatethat the sum so specified is payable, but thenon-receipt of such notice by such localauthority shall not invalidate theproceedings under this section.

(10) Nothing in the provisions ofsubsections (8) and (9) of this section shallaffect or be deemed or construed to affectthe right of the Board to recover in anyother manner any sum payable to the Boardby a local authority on account of theelectricity supply charge of that authority.

(11) Any sum due to the Board from alocal authority in respect of the electricitysupply charge of that authority shall,notwithstanding anything to the contrary inany other written law, be the first charge onthe moneys in the fund of that authority.

PART VI

GENERAL

56. (1) The Minister may makeregulations for the purpose of carrying outor giving effect to the principles andprovisions of this Act.

(2) In particular and without prejudiceto the generality of the powers conferred bysubsection (1), the Minister may makeregulations in respect of all or any one ofthe following matters :—

(a) any matter required by this Act to beprescribed or in respect of whichregulations are authorized by thisAct to be made ; and

(b) the prevention of theft of, or damageto, or the commission of nuisanceson, any property used by the Board,and the imposition of penalties on,and the recovery of compensationfrom, persons responsible for suchtheft, damage or nuisance.

(3) Every regulation made by theMinister shall be published in the Gazetteand shall come into operation on the date ofsuch publication or on such later date asmay be specified in the regulation.

(4) Every regulation made by theMinister shall, as soon as convenient afterits publication in the Gazette, be broughtbefore Parliament for approval. Anyregulation which is not so approved shall bedeemed to be rescinded as from the dateof disapproval, but without prejudice toanything previously done thereunder.

(5) Any person who contravenes theprovisions of any regulation made underthis Act shall be guilty of an offence andshall, on conviction after summary trialbefore a Magistrate, be liable toimprisonment of either description for aperiod not exceeding one year or to a finenot exceeding one thousand rupees, or toboth such imprisonment and fine.

Regulationsand penaltyfor theircontravention.

* Vide section 78 of the Primary Courts Procedure Act.

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Can.538] CEYLON ELECTRICITY BOARD

57. (1 ) Where any immovable propertyis required to be acquired for any purposeof the Board and the Minister, by Orderpublished in the Gazette, approves of theproposed acquisition, that property shall bedeemed to be required for a public purposeand may accordingly be acquired under theLand Acquisition Act and be transferred tothe Board.

(2) Any sum payable for the acquisitionof any immovable property under the LandAcquisit ion Act for the Board, shall be paidby the Board.

58. Any company or other body ofpersons may, notwithstanding anything tothe contrary in any written law orinstrument relating to its functions, enterinto and perform or carry out all suchcontracts and agreements with the Board asmay be necessary for the performance of theduties and the exercise of the powers of theBoard.

59. (1) No suit or prosecution shalllie-

(a) against the Board for any act whichin good faith is done or ispurported to be done by the Boardunder this Act; or

(b) against any member, officer, servantor agent of the Board for any actwhich in good faith is done or ispurported to be done by him underthis Act or on the direction of theBoard.

(2) Any expense incurred by the Boardin any suit or prosecution brought by oragainst the Board before any court shall bepaid out of the funds of the Board, and anycosts paid to, or recovered by, the Board inany such suit or prosecution shall becredited to the funds of the Board.

(3) Any expense incurred by any suchperson as is referred to in paragraph (b) ofsubsection (1) in any suit or prosecutionbrought against him before any court inrespect of any act which is done or ispurported to be done by him under this Actor on the direction of the Board shall, if thecourt holds that such act was done in good

No writ toissue againstperson orproperty of amember of theBoard.

faith, be paid out of the funds of the Board,unless such expense is recovered by him insuch suit or prosecution.

60. No writ against person or propertyshall be issued against a member of theBoard in any action brought against theBoard.

61. Where any immovable property ofthe State is required for the purpose of theBoard, such purpose shall be deemed to be apurpose for which a special grant or lease ofsuch property may be made under section 6of the State Lands Ordinance, andaccordingly, the provisions of thatOrdinance shall apply to a special grant orlease of such property to the Board.

62. (1) Where any matter or dispute isrequired to be referred to arbitration by theMinister under this Act or is referred toarbitration through the Minister under thisAct, such matter or dispute shall be soreferred by the Minister, as soon aspracticable, to a Board of Arbitrationconsisting of one arbitrator appointed bythe Board, another arbitrator appointed bythe other party to the matter or dispute, andan umpire (who shall be appointed by theMinister to be the Chairman of the Board ofArbitration) agreed upon by the twoarbitrators or, in the event of an absenceof such agreement within two months,nominated by the Minister.

(2) In the event of any difference ofopinion among the members of the Board ofArbitration, the decision or determinationof the majority shall be the decision of thatBoard.

(3) Regulations may be made—

(a) in respect of all matters relating to orconnected with the conduct ofproceedings upon arbitration underthis section; and

(b) providing for the payment of fees tothe persons appointed under thissection as arbitrators or as membersof the Board of Arbitration.

(4) The decision or determination givenupon arbitration under this section inrespect of any matter or dispute shall befinal and conclusive.

Acquisition ofimmovableproperty underthe LandAcquisitionAct for theBoard.

Power ofcompanies,&c.. to enterinto contractswith the Board.

Protection foraction takenunder this Actor on thedirection ofthe Board.

Special grantor lease ofState propertyto Board.

Arbitration.

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CEYLON ELECTRICITY BOARD [Cap.538

Penalty forcausing failureof electricitysupply of theBoard.

Amendment ofother writtenlaws, &c.

63. (1) Any person who, unlawfully (ii)and maliciously, does any act which causesor is likely to cause a failure of electricalenergy supplied by the Board, shall be guiltyof an offence.

(2) Any person who aids or abets anyother person in the commission of anoffence under subsection (1), shall be guiltyof an offence.

(3) Every person who is guilty of anoffence under subsection (1), or subsection(2), shall upon conviction be liable torigorous imprisonment for a term notexceeding seven years.

(4) Every offence under subsection (1)or subsection (2) shall, notwithstandinganything in the Code of Criminal ProcedureAct, be a cognizable offence within themeaning and for the purposes of that Act.

64. (1) Wherever, in any provision ofany other written law or in any notice,permit, communication, form or otherdocument issued, made, required orauthorized by or under any other writtenlaw—

(a) the expression " Department ofGovernment Electrical Undertakings"occurs, there shall be substitutedtherefor, the expression "theCeylon Electricity Board "; and

(b) the expression " General Manager,Department of GovernmentElectrical Undertakings" occurs,there shall be substituted therefor,the expression "General Manager,Ceylon Electricity Board ",

and accordingly, wherever in any suchprovision, notice, permit, communication,form or other document—

(i) the abbreviation " Department" isused to denote the Department ofGovernment Electrical Undertakings,such abbreviation shall be read andconstrued as a reference to theCeylon Electricity Board ; and

This Act toprevail overother writtenlaws.

the abbreviation " GeneralManager" is used to denote theG e n e r a l M a n a g e r of t h eGovernment Electrical Undertakings,such abbreviation shall be read andconstrued as a reference to theGeneral Manager of the CeylonElectricity Board.

(2) The provisions of subsection (1)shall take effect on the date on whichthe Government Electrical Undertakingsare t ransferred to the Board undersection 18.

65. The provisions of this Act shall haveeffect notwithstanding anything containedin any other written law, and accordingly inthe event of any conflict or inconsistencybetween the provisions of this Act and suchother law, the provisions of this Act shallprevail.

66. In this Act, unless the contextotherwise requires—

"Department" means the Departmentof G o v e r n m e n t E l e c t r i c a lUndertakings;

"local authority " includes any MunicipalCouncil, Urban Council, TownCouncil or Village Council;

" Local Government Service ",, " LocalGovernment Service AdvisoryBoard ", and " member of the LocalGovernment Service" have thesame meanings, respectively, as inthe Local Government ServiceLaw;

" Minister in charge of the subject ofLocal Government" means theMinister who is in charge of thesubjects and functions relating to orconnected with Local Government,whether with or without any othersubjects or functions;

Interpretation.

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Cap. 538] CEYLON ELECTRICITY BOARD

" prescribed" means prescribed by section 20 or a compulsory transferregulation ; scheme prepared under section 21;

" public officer " has the same meaning as " transferable service of the Government"in the Constitution; means a service of the Government

to which appointments are made" transfer scheme" means a voluntary subject to transfer within that

transfer scheme prepared under service-

[ NOTE—Amendments effected to the Electricity Act by section 17 of this Act, read with the Schedule to this Act,are omitted and incorporated in the Electricity Act.]

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Documents

CEYLON ELECTRICITY BOARD [Cap. 538CEYLON ELECTRICITY BOARD [Cap. 538(b) The Chairman or Vice-Chairman or other member of the Board, as the case may be, who presides at any meeting