18. Section 76A of the principal enactment is hereby repealed and the following section substituted therefor :-
| 76A. (1) Where the Governor is of opinion that it is inexpedient to determine and certify, in accordance with the provisions of section 73, the parities with respect to the Sri Lanka Rupee of foreign currencies ordinarily required for the international transactions of Sri Lanka, the Governor-
| | (a) may desist from determining and certifying the parties of such foreign currencies under that section ; and | | |
| | (b) may or may not determine the rates at which the Central Bank may buy and sell foreign exchange in spot or other transactions. | | |
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| (2) Where the Governor acts in terms of subsection (1), the provisions of sections 73, 74 and 76 shall cease to have any force or effect in law. |
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| (3) Where the Governor determines, under paragraph (b) or subsection (1) the rates at which the Central Bank may buy and sell foreign exchange in spot or other transactions, the following provisions shall apply determination-
| | (a) such determination may be limited to such foreign currencies as the Governor may deem appropriate ; | | |
| | (b) the rates determined under paragraph (b) of subsection (1) shall not apply in the case of the purchases and sales of foreign notes and coins, in which case the Central Bank may have regard to the additional costs of, or costs incidental to, such purchases or sales ; | | |
| | (c) the Central Bank shall not accept any commission or impose any charge of any description in respect of the purchase or sale of foreign exchange, except the telegraphic or other costs actually incurred in connection with such purchase or sale ; | | |
| | (d) it shall be competent for the Governor to authorise, in writing, any officer by name or by office, to vary from time to time with in such limits as may be specified by the Governor, the rates determined by the Governor under paragraph (b) of subsection (1) ; | | |
| | (e) where the Governor makes a determination under paragraph (b) of subsection (1) with respect to foreign currency but makes no determination under that subsection with respect to any particular foreign currency in respect of which no determination has been made at a rate calculated on the basis of the exchange rate for that currency in the exchange rate for that currency in the international; markets in relation to any foreign currency with respect to which the Governor has made a determination under paragraph (b) of subsection (1). | | |
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| (4) where the Governor desists from determining and certifying parties under subsection (1) (a) and does not determine the rates at which the Central Bank may buy and sell foreign exchange in spot or other transactions under paragraph (b) of subsection (1) the Central Bank may buy and sell foreign exchange at such rates as the Governor or an officer authorised by the Governor for the purpose may deem appropriate. |
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| (5)
| | (a) Where the Governor determines under subsection (1) (b) the rates at which the Central Bank may buy and sell foreign exchange, the Governor may determine the minimum rate at which any Commercial bank may buy spot foreign exchange and the maximum rate at which any commercial bank may sell spot foreign exchange. | | |
| | (b) Notwithstanding that the Governor has desired from determining and certifying parties under subsection (1) (a) and has not determined the rates at which the Central Bank may buy or sell foreign exchange under paragraph (b) of subsection (1) the Governor may determine the minimum rate at which any commercial bank may buy spot foreign exchange and the maximum rate at which any commercial bank may sell spot foreign exchange. | | |
| | (c) The provisions of paragraph (d) of subsection (3) shall, mutatis mutandis, apply to and in relation to, the minimum and maximum rates determined under paragraph (a) or paragraph (b) of this subsection. | | |
| | (d) Where no determination is made under paragraph (a) or paragraph (b) of this subsection, a commercial bank may buy, sell or carry out any transaction in foreign currency at rates calculated on the basis of the exchange rates for that currency in the international markets. | | |
| | (e) Where a determination is made under paragraph (a) or paragraph (b) of this subsection as to the minimum and the maximum rates at which commercial banks may buy and sell spot foreign exchange-
| | | (i) no commercial bank shall buy spot foreign exchange at any rate below the minimum rate determined under those paragraphs as may be applicable or sell spot foreign exchange at any rate exceeding the maximum rate so determined as may be applicable; and no commercial bank shall in respect of the purchase or sale of such exchange accept any commission or impose any charge of any description except telegraphic or other costs actually incurred in connection with such purchase or sale ; and |
| (ii) no commercial bank shall carry out any transaction in foreign exchange. Not being a spot transaction. At any rate which differs from the rates determined under paragraph (a) or paragraph (b) of this subsection as may be applicable by a margin greater than is reasonable having regard to the additional costs, expenses or risks of the transaction, or by such margin, if any, as ; may be prescribed in that behalf by the Governor,". |
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Sri Lanka Consolidated Acts