42.
| (1) The Government is hereby authorized to guarantee, on such terms and conditions as the Government may determine, loans raised by the Board from the International Bank for Reconstruction and Development, or from any other international or foreign organization approved by the Government. The loans authorized to be guaranteed under this sub-section may be denominated in foreign currency. |
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| (2) All sums payable by the Government under any guarantee given under sub-section (1) are hereby charged on the Consolidated Fund of Ceylon. |
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| (3) All sums payable by the Board in respect of principal, interest and other charges on any loan to the Board from the International Bank for Reconstruction and Development or from any other inter- national or foreign organization approved by the Government, or by the Government under any guarantee given under sub-section (1) shall, notwithstanding anything to the contrary in any law of Ceylon, be paid-
| | (a) without a deduction for, and free from, any taxes, duties or fees now or hereafter imposed by or under any law of Ceylon, and | | |
| | (b) free from all restrictions now or hereafter imposed by or under any law of Ceylon: | | |
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| (4) For the purposes of sub-section (3), the question whether an individual or a corporation is or is not resident in Ceylon shall be determined in accordance with the provisions of section 54 of the Inland Revenue Act, No 4 of 1963. |
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| (5) Every guarantee agreement between the Government and the International Bank for Reconstruction and Development or any other international or foreign organization approved by the Government pursuant to this Act and every guarantee given by the Government pursuant to any such guarantee agreement shall, notwithstanding anything to the contrary in any law of Ceylon, be valid and enforceable in Accordance with their respective terms. |
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| (6) In the case of any loan made to the Board by the International Bank for Reconstruction and Development or any other international or foreign organization approved by the Government and guaranteed by the Government, the Government shall bear any loss, and be entitled to any profit, resulting from any revaluation of the Ceylon rupee in relation to the currency or currencies in which that loan is expressed. |
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| (7) The Governor-General, or any person authorized in that behalf by the Governor-General by instrument under his hand, is hereby empowered, on behalf of the Government, to sign any guarantee agreement between the Government and the International Bank for Reconstruction and Development or any other International or foreign organization approved by the Government. |
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| (8) Notwithstanding anything in any other written Law no agreement, bond or other document executed by the Board in respect of any loan which may be raised by the Board from the International Bank for Reconstruction and Development, or from any other International or foreign organization approved by the Government, shall be subject to, or be charged with, any stamp duty or duties whatsoever. |
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| (9) As soon as possible after the end of each financial year, the Minister of Finance shall cause to be laid before the Senate and the House of Representatives a report containing a statement of every loan, bond and guarantee entered into under this section, luring the course of that financial year. |
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Sri Lanka Consolidated Acts