10. Section 17 of the principal enactment is hereby repealed and the following section is substituted therefor:-
| 17.
| | (1) The Bank shall grant financial accommodation under this Act on the basis of normal commercial criteria applicable to loans, and shall endeavour to obtain a return, on such accommodation at the current market rate of interest chargeable for loans. | | |
| | (2) Notwithstanding the provisions of subsection (1) of this section, the Minister may, having regard to the national economic interest of Sri Lanka and where he is of opinion that the grant of the financial accommodation is necessary to support any sector or sub-sector of the economy and having regard to any special circumstances relating to the application for the financial accommodation, direct the Board in writing to grant any financial accommodation-
| | | (a) which in the opinion of the Board does not conform to normal prudent banking criteria; or |
| (b) at a rate of interest lower than that which the Bank would normally have charged for such accommodation. |
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| | (3) where any direction is given by the Minister under--
| | | (a) paragraph (a) of subsection (2), the Secretary to the Treasury shall prior to the grant of such accommodation, provide an on behalf of the Government of Sri Lanka, on terms acceptable to the Board for the repayment of such accommodation and the interest payable on it when such repayment or interest become due; or |
| (b) under paragraph (b) of subsection (2) the Secretary to the Treasury shall pay as a subsidy to the Bank, the difference between the interest charged and the interest which the Bank would normally have charged for such an accommodation and such subsidy shall be paid annually or at such other intervals as may be agreed upon between the Secretary to the Treasury and the Board; or |
| (c) under paragraphs (a) and (b) of subsection (2), the Secretary to the Treasury shall, prior to the grant of such accommodation, provide a guarantee as is referred to in paragraph (a) of this subsection, and also pay the subsidy as is referred to in paragraph (b) of this subsection. |
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| | (4) Where a guarantee has been provided under subsection (3) the Minister shall, at the earliest convenient opportunity, lay statement relating to the guarantee before Parliament. | | |
| | (5) Any sum required for the fulfillment of a guarantee provided under subsection (3) of this section shall be paid out of the Consolidated Fund, within one hundred and eighty days of demand bring made therefor to the Secretary to the Treasury by the Bank. ". | | |
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Sri Lanka Consolidated Acts