(1) There shall be established an Authority which shall be called the Udarata Development Authority of Sri Lanka (hereinafter referred to as the "Authority").

(2) The Authority shall by the name assigned to it by subsection (1), be a body corporate and shall have perpetual succession and a common seal and may sue be sued in such name.

(1)For the purposes of this Act, the area of authority of the Authority shall be limited to any area falling within the Administrative Districts of Kandy, Matale, Nuwara Eliya, Kegalle, Ratnapura, Badulla, Monaragala and Ampara.

(2) The Minister may from time to time by Order published in the Gazette identify any Divisional Secretaries Division or part thereof, falling within any one of the aforesaid Administrative Districts, to be a "designated area" for the purposes of this Act:

Provided however, that the Authority may maintain branch offices and engage in any other activity outside the designated area, insofar as the same is necessary for the attainment of the objects of this Act.

(a) ex-officio members, namely-

(b) five members appointed by the President on the recommendation of the Minister, (hereinafter referred to as the "appointed members").

(1) The President shall nominate a member to be the Chairman of the Authority (hereinafter referred to as the "Chairman") from amongst the members of the Board.

(2) Where the Chairman by reason of illness or absence from Sri Lanka is temporarily unable to perform the duties of his office, the President may appoint another member of the Board to act in his place.

(3) The President may for reasons assigned, remove the Chairman from the office of the Chairman.

(4) The Chairman may resign from office by letter addressed to the President and such resignation shall be' effective from the date on which it is accepted by the President.

(a) he is or becomes a member of Parliament or Provincial Council or local authority ;

(b) he is not or ceases to be a citizen of Sri Lanka ;

(c) he is under any law in force in Sri Lanka or in any other country found or declared to be of unsound mind ;

(d) he is serving or has served a sentence of imprisonment imposed by any court in Sri Lanka or any other country ;

(e) he holds or enjoys any right or benefit under any contract made by or on behalf of the Authority ;

(f) he is a person having been declared as an insolvent or a bankrupt person under any law in Sri Lanka or any other country and is an undischarged insolvent or bankrupt.

(1) An appointed member may resign his office by letter addressed to the President and such resignation shall be effective from the date on which it is accepted by the President.

(2) The President may for reasons assigned, remove an appointed member from office.

(3) Where an appointed member dies, resigns or is removed from office the President shall, having regard to the provisions of section 4, appoint another member in his place.

(4) A member appointed under subsection (3) shall hold office for the unexpired period of the term of office of the member whom he succeeds.

(1) Subject to the provisions of subsections (1) and (2) of section 7 the term of office of an appointed member of the Board shall be five years and such member shall be eligible for re-appointment.

(2) An appointed member who has been removed from office shall not be eligible for re-appointment as a member of the Board or to serve the Authority in any other capacity.

(1) The Chairman of the Authority shall, if present preside at every meeting of the Board. In the absence of the Chairman from any such meeting, the members present shall elect one of the members present to preside at such meeting.

(2) The quorum for any meeting of the Board shall be four members.

(3) Subject to the preceding provisions of this section, the Board may regulate the procedure in regard to the meetings of the Board and the transaction of business at such meetings.

(1) The seal of the Authority shall be in the custody of such person as the Board may from time to time decide .

(2) The seal of the Authority may be altered in such manner as may be determined by the Board.

(3) The seal of the Authority shall not be affixed to any instrument or document except in the presence of the Chairman, and one other member of the Board both of whom shall sign the instrument or document in token of their presence:

Provided that where the Chairman is unable to be present at the time when the seal of the Authority is affixed to any instrument or document, any other member of the Board authorized in writing by the Chairman in that behalf, shall be competent to sign such instrument or document in accordance with the preceding provisions of this subsection.

(4) The Board shall maintain a register of the instruments and documents to which the seal of the Authority is affixed.

(a) plan and implement development projects within any designated area to improve productivity, foster economic, social, cultural and environmental development and generate income and employment opportunities ;

(b) carry out detailed studies of the projects identified in the overall development plan for the designated area, on a priority basis ;

(c) identify groups of people handicapped due to historical, social and other factors and prepare proposals, raise funds and execute projects to uplift their social and economic conditions ;

(d) extend special attention to the preservation of the city of Kandy, its heritage, cultural institutions, environment and infrastructure in consideration of its historical significance, cultural and economic importance to the entire nation ;

(e) secure the co-operation of government departments, state institutions, local authorities, public corporations, provincial authorities and other persons natural or legal whether private or public, in carrying out studies referred to in paragraph (b) and in the implementation of development projects within any designated area ; and

(f) secure the participation of foreign and local private sector agencies, in carrying out detailed studies referred to in paragraph (b) and the implementation of development projects within any designated area.

(a) identify and approve development projects for implementation within any designated area ;

(b) secure and obtain technical and financial assistance from local and foreign sources in carrying out the objects of the Authority ;

(c) obtain local and foreign assistance in carrying out studies aimed at implementing development projects within any designated area ;

(d) require any Ministry, government department or other agency responsible for the implementation of the projects being carried on in any designated area, to co-operate in the planning and implementation of such projects ;

(e) request any Ministry, government department or other agency to take over, maintain and operate any development project of the Authority ;

(f) establish its own divisions or agencies as are necessary for the discharge of its functions within any designated area ;

(g) carry out research relating to the economic, social, cultural and environmental development of the designated areas ;

(h) prepare an environmental impact assessment report in respect of any development project to be implemented within any designated area ;

(i) award in accordance with the tender procedure laid down by the government from time to time, tenders for the procurement of goods and services necessary for the implementation of the development projects ;

(j) impose or levy a charge for the services rendered by the Authority within the designated area ;

(k) purchase, acquire, erect, maintain, reconstruct or adopt any offices, plants, machinery or other material that may become necessary for the implementation of any development project ;

(l) implement development projects through any public or private institution or jointly by private and public institutions ;

(m) to borrow or raise money or secure obligations from sources in Sri Lanka as is necessary for the implementation of any development project ;

(n) to acquire and hold any movable or immovable property;

(o) in collaboration with relevant Ministries, take such measures as may be necessary for water -shed management and control of soil erosion ;

(p) in collaboration with the relevant Ministries and private entrepreneurs manage farms and engage in farming, agricultural and horticultural activities ;

(q) provide advisory and farmer training services to improve cultivation techniques, water management, soil management, and preservation of the physical) environment ;

(r) in collaboration with State and Private Banks, manage and operate schemes of supervised credit to farmers;

(s) provide agricultural inputs such as seed materials, fertilizers, agro-chemicals, power, agricultural machinery and equipment to farmers ;

(t) in collaboration with the relevant Ministries, facilitate or contract research relating to the development of agriculture and agro-based specific agricultural or related activities ;

(u) promote the establishment of agro-based or related industrial and commercial enterprises ;

(v) promote the establishment of marketing services the purchase, storage, processing and sale of fan and other produce ;

(w) promote manufacture and trade of any plant machinery, tools, goods or things of any description;

(x) import, export, buy, sell and otherwise deal in goods, produce, articles or merchandise ;

(y) acquire by subscription, purchase or otherwise and to accept and take, hold and sell, shares or stock in any company, society or undertaking such as may be likely to promote or advance the objects of the Authority ;

(z) accept any stocks or shares in or debentures or other securities of any company in payment or part payment for any sale made to, or debt owing from, any such company ;

(aa) promote, invest and participate in subsidiary companies in order to achieve the objects of the Authority ; and

(bb) subject to the provisions of the Constitution and any other written law, do all such other acts as may be incidental or conducive to the attainment of the objects of the Authority or the exercise of its powers under this Act.

(1) The Board shall have the power to enter into any agreement with any government department, Provincial Council, local authority or any other body, or person whether private or public, including joint ventures, for the purpose of exercising, performing and discharging the powers, duties and functions of the Authority.

(2) Every such agreement shall be in writing and shall upon registration with the Authority constitute a valid and binding contract between the Authority and such government department, local authority or other body or person.

(1) Where the Board considers it necessary for the purposes of this Act, it may with the approval of the President in or in relation to a designated area give special or general directions to any government department or corporation after consultation with such department or corporation to perform and discharge such duties and functions relating to the implementation of any development project as the Authority may determine.

(2) It shall be lawful for any such department or corporation to whom any such direction is given by the Authority under subsection (1) to comply with such direction.

(3) Subject to the provisions of the Constitution, a department or corporation to which any direction is given under subsection (1), shall be subject to the supervision and control of the Authority in respect of all matters connected with such direction.

(1) Where any land or any interest in any land within any designated area is required by the Authority for the implementation of any of the projects and the Minister by Order published in the Gazette approves of the proposed acquisition, that land or interest in any land may accordingly be acquired under the Land Acquisition Act (Chapter 460) and be transferred to the Authority, as if such land or interest in land is required for a public purpose :

Provided however, where any land or any interest in a land of an estate situated within the designated area is required by the Authority the Minister shall consult the Minister in charge of the subject of Plantation Infrastructure, before publishing an Order, under this section for the acquisition of such land or interest in such land.

(2) In any case where any land or any interest in any land within any designated area is to be acquired under the Lane Acquisition Act for any purpose of the Authority and public notice of the intention to acquire that land or interest published as required by the aforesaid Act at any time within period of three years commencing from the date of publication of the Order under subsection (1), the following provisions shall apply for the purpose of determining the amount of compensation to be paid in respect of that land or interest, notwithstanding anything to the contrary in that Act -

(3) Notwithstanding the provisions of subsection (2), where any person suffers loss or damage to his permanent residence or livelihood, due to the acquisition of any land or any interest in any land situated within the designated area, such person shall, in addition to the compensation paid to such person under subsection (2) be compensated in accordance with the National Involuntary Resettlement Policy of the Government.

(4) Any sum payable as compensation for the acquisition of any land or interest in any land under subsection (1) for the purposes of the Authority shall be paid by the Authority.

(1) Where any immovable property of the State is required for any purpose of the Authority, such purpose shall be deemed to be a purpose for which a special grant or lease may be made under section 6 of the Crown Lands Ordinance (Chapter 454) and the provisions of that Ordinance shall accordingly apply to a special grant or lease of such property to the Authority.

(2) Where any movable property of the State is required for any purpose of the Authority, the Minister may by Order published in the Gazette, transfer to, and vest in the Authority the possession and use of such movable property :

Provided however, that no Order affecting any movable property of the State shall be made by the Minister under the preceding provisions of this subsection, without the concurrence of the Minister having control over such property.

(1) The Authority shall have its own Fund (hereinafter referred to as the "Fund").

(2) There shall be paid into the Fund-

(3) There shall be paid out of the Fund all such sums as are required to defray the expenditure incurred by the Authority in the exercise, performance and discharge of its powers, duties and functions under this Act or under any other written law and all such sums as are required to be paid out of the Fund.

(1) Notwithstanding the provisions of any other written law to the contrary, the Authority may for the purpose of discharging any of its duties, allocate funds to any public corporation or any government department with the approval of the Minister, and it shall be the duty of such corporation, or department, as the case may be, to carry out the said functions, and duly account for the expenditure incurred in discharging such duties.

(2) The Authority shall be entitled to require any corporation or government department, to which funds have been allocated under subsection (1), to furnish such information as may be required by the Authority in respect of the expenditure of such funds and it shall be the duty of such corporation or department to comply with such requirement.

(1) The financial year of the Authority shall be the calendar year.

(2) The provisions of Article 154 of the Constitution relating to the audit of the accounts of public corporations shall apply to the audit of the accounts of the Authority.

(1) For the purpose of discharging its duties under this Act, the Board is hereby authorized to borrow moneys from any local, international or foreign organization approved by the President, subject to terms and conditions, as the Government may determine subject to the provisions of subsection (4) of this section.

(2) The loans authorized to be borrowed under this section may be denominated in foreign currency.

(3) The Minister in charge of the subject of Finance shall guarantee the loans raised by the Board under subsection (1), on behalf of the Government. Forthwith upon a guarantee the Minister shall place before Parliament a statement setting out the details of such guarantee.

(4) Any sum required for the fulfillment of a guarantee under subsection (3) may, with the prior approval of the Parliament be paid out of the Consolidated Fund.

(5) In the case of any loan made, to the Authority by any international or foreign organization approved by the President and guaranteed by the Government, the Government shall bear any loss and be entitled to any profit, resulting from any re valuation of the rupee in relation to the currency or currencies in which that loan is expressed and the amount of very such loss shall be charged to the Consolidated Fund.

(6) The Minister in charge of the subject of Finance, by instrument under his hand is hereby empowered on behalf of the Government to sign any guarantee agreement between the Government and any local organization.

(1) The Board shall appoint a Director-General of the Authority who shall be the Chief Executive Officer of the Authority.

(2) The Director-General shall, subject to the general or special direction and control of the Board, be charged with the direction of the affairs and transactions of the Authority, the exercise, performance and discharge of its powers, functions and duties, and the administration and control of the officers and servants of the Authority.

(3) The Director-General may, with the approval of the Authority, whenever he considers it necessary to do so, delegate to any officer or servant any power, duty or function conferred or imposed on, or assigned to him by this Act and such officer or servant shall exercise, perform and discharge such power, function or duty subject to the general or special directions of the Director-General.

(1) The Authority may appoint such officers and servants to the staff of the Authority as it considers necessary for the efficient discharge of its functions.

(2) The officers and servants appointed under subsection (1) shall be remunerated in such a manner and at such rates and shall be subject to such conditions of service as may be determined by the Authority with the approval of the President.

(3) At the request of the Authority any officer in the public service may, with the consent of the officer and the Secretary to the Ministry of the Minister in charge of the subject of Public Administration, be temporarily appointed to the Authority for such period as may be determined by the Authority with like consent, or be permanently appointed to such staff.

(4) Where any officer in the public service is temporarily appointed to the staff of the Authority, the provisions of subsection (2) of section 14 of the National Transport Commission Act, No. 37 of 1991, shall mutatis mutandis, apply to and in relation to him.

(5) Where any officer in the public service is permanently appointed to the staff of the Authority, the provisions of subsection (3) of section 14 of the National Transport Commission Act, No. 37 of 1991, shall mutatis mutandis, apply to and in relation to him.

(6) Where the Authority employs any person who has agreed to serve the Government for a specified period, any period of service to the Authority by that person, shall be regarded as service to the Government for the purpose of discharging the obligations of such agreement.

(7) At the request of the Authority any member of the Local Government Service or any other officer or servant of a local authority, may, with the consent of such member, officer or servant and the Local Government Service Commission, or the local authority, as the case may be , be temporarily appointed to the staff of the Authority for such period as may be determined by the Authority with like consent or be permanently appointed to such staff on such terms and conditions including those relating to pension or provident fund rights as may be agreed upon by the Authority and the Local Government Service Commission or that local authority.

(8) Where any member of the Local Government Service or any officer or servant of any local Authority is appointed temporarily under subsection (7) to the staff of the Authority, he shall be subject to the same disciplinary control as any other member of the staff of the Authority.

(1) At the request of the Authority any officer or servant of a public corporation may, with the consent of such officer or servant and the governing board of such corporation, be temporarily appointed to the staff of the Authority for i such period as may be determined by the Authority with like consent or with like consent be permanently appointed to the staff of the Authority on such terms and conditions, including those relating to pension or provident fund rights, as may be agreed upon by the Authority and the governing board of such corporation.

(2) Where any person is appointed whether temporarily or permanently, under subsection (1) to the staff of the Authority, he shall be subject to the same disciplinary control as any other member of the staff of the Authority.

(3) For the purpose of this section governing board in relation to a public corporation means the Board of Directors or other body, in which the administration and management of that public corporation has been vested.

(1) The Board may, subject to such conditions as may be specified in writing, delegate to the Chairman or any other member of the Board, any power, duty or function conferred or imposed on, or assigned to, the Authority.

(2) Notwithstanding any such delegation, the Board may exercise, perform or discharge any such power, duty or function, so delegated.

(1) The Minister may, give to the Authority in writing general or special directions as to the performance of the duties and the exercise of the powers of the Authority. It shall be the duty of the Authority to comply with such directions.

(2) The Minister may from time to time, in writing, direct the Authority to furnish to him in such form as he may require, returns, accounts and other information with respect to the property and activities of the Authority. It shall be the duty of the Authority to comply with such direction.

(1) No suit or prosecution shall lie-

(2) Any expense incurred by the Authority in any suit or prosecution brought by or against the Authority before any Court, shall be paid out of the Fund of the Authority, and any costs paid to, or recovered by the Authority in any such suit or prosecution shall be credited to the Fund of the Authority.

(3) Any expense incurred by any such person as is referred to in paragraph (b) of subsection (1) in any suit or prosecution brought against him before any Court in respect of any act which is done or is purported to be done by him under this act or on the direction of the Authority shall if the Court holds that such act is done in good faith, be paid out of the Fund of the Authority, unless such expenses are recovered by him in such suit or prosecution.

(1) The Minister may, in consultation with the Authority, make regulations in respect of matters required by this Act to be prescribed or in respect of which regulations are authorized to be made. Regulations.

(2) Every regulation made by the Minister shall be published in the Gazette and shall come into operation on the date of such publication or on such later date as may be specified in the regulation.

(3) Every regulation shall as soon as it is convenient after its publication in the Gazette be brought before Parliament for approval. Any regulation which is not so approved shall be deemed to be rescinded from the date of disapproval but without prejudice to anything previously done thereunder.

(4) Notification of the date on which any regulation is deemed to be rescinded shall be published in the Gazette.

(1) The Authority may make rules, in respect of all matters for which rules are required or authorized to be made under this Act.

(2) Every rule made by the Authority shall be approved by the Minister and be published in the Gazette and shall come into operation on the date of such publication or on such date as may be specified therein.