(1) There shall be established in accordance with the provisions of this Act, a Commission which shall be called the Public Enterprises Reform Commission of Sri Lanka (hereinafter referred to as "the Commission").

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

(1) The Commission shall consist of-

(2) The Minister shall nominate from amongst the members of the Commission, one member to be the chairman of the Commission.

(3) The provisions of the Schedule to this Act shall have effect in relation to the term, of office of the members of the Commission and the remuneration payable to the Commission.

(a) fostering and accelerating the economic development of the country ;

(b) Improving the efficiency and competitiveness of the economy ;

(c) upgrading production and services with access to international markets on a competitive basis, by the acquisition of new technology and expertise ;

(d) developing and broad basing the capital market and mobilizing long term private savings ;

(e) motivating the private sector ;

(f) augmenting the revenues of the Government, so as to enable it to better address the social agenda,

(a) to carry out surveys and studies to ascertain and determine the public enterprises which require to be reformed ;

(b) to formulate a framework for a sustainable and stable public enterprise reform strategy ;

(c) to make recommendations to the Government on the continuation, and efficiency, of public enterprises which are profit making and are of national importance ;

(d) to make recommendations to the Government, an the selection of public enterprises for conversion into public companies under the Conversion of Public Corporations or Government Owned Business Undertakings into Public Companies Act, No. 23 of 1987 ;

(e) to make recommendations to the Government on the sale or disposal to the public, of shares in, or assets of, companies registered under the Conversion Public Corporations and Government Owned Business Undertakings into public Companies Act, No, 23 of 1987 ;

(f) to manage, on behalf of the Government, companies registered under the Conversion of Public Corporations or Government owned Business Under-takings into Public Companies Act, No. 23 of 1987, in which the entirety of the shares are owned by the Secretary to the Treasury ;

(g) to monitor the performance of companies under the Conversion of Public Corporations of Government Owned Business Undertakings this Public companies Act, No. 23 of 1987, and majority of the shares in which are owned by persons other than the Government, to identity weaknesses in their performance and' to make recommendations to the Government, for the correction of these weaknesses ;

(h) to advise and assist the Government in regulating companies registered under the Conversion of Public Corporations Government owned business Undertakings into Public Companies Act No. 23 of 1987 ;

(i) to assist the Government to create public awareness of Government policies and Programmes on the reform of public enterprises With a view to developing a commitment by the public, to such ; policies and Programmes ;

(j) to promote worker participation in, the implementation of such policies and Programmes and ensure worker participation in the equity of the companies referred to in paragraph (e) ;

(k) to make rules in respect of the management of the affairs of the commission ;

(l) to enter into such contracts as are deemed necessary for the discharge and performance of its functions and duties ;

(m) to appoint, employ, remunerate and exercise disciplinary control over such officers, servants or agents as are necessary for the discharge and performance of its functions and duties ;

(n) to enter into agreements for co-operation with educational and other institutions, whether in Sri Lanka or abroad, for the exchange of personnel, advisory services and the training of personnel ;

(o) to open and maintain current, savings or deposit accounts in any bank or banks ;

(p) to establish provident funds or pension schemes for the benefit of officers and servants of the Commission and to make contributions to any such fund or scheme ;

(q) to borrow such sums of money as may be necessary for the discharge and performance of its functions and duties ;

(r) to take such action as may be necessary to advance the skills of its officers and servants ;

(s) to issue publications, circulars and press notices ;

(t) to act as the agent of the Government, in Sri Lanka or abroad, for the purposes of any matter or transaction, if so authorized ;

(u) to undertake all such activities as in the opinion of the Commission are necessary to facilitate the discharge and performance of its functions and duties.

(1) The Commission shall have its own Fund.

(2) There shall be paid into the Fund of the Commission-

(3) There shall be paid out of the Fund of the Commission, all such sums of money as may be required to defray any expenditure incurred by the Commission in the exercise, performance and discharge of its powers, duties and functions,

(1) The Commission shall cause proper books of accounts to be kept of the income and expenditure assets and liabilities and all other transactions of the Commission.

(2) The provisions of Article 154 of the Constitution relating to audit of accounts of Public Corporations shall apply to the audit of accounts of the Commission.

(1) The Minister shall, on the advise of the Commission appoint a Director-General of the Commission (hereinafter referred to as "the Director-General").The Director-General shall be a full time officer of the Commission and shall receive such remuneration and other benefits as may be determined by the Commission,

(2) The Director-General shall be responsible to the Commission. He shall be entitled to attend the meetings of the Commission in an advisory capacity but shall not be entitled to vote at such meetings.

(3) The Director-General shall exercise, discharge and perform any such powers, functions and duties as may be delegated to him by the Commission.

(1) The Commission may appoint such officers, servants and consultants as may be necessary for the administration and management of the affairs of the Commission and shall determine the remuneration payable to, and the conditions of service of, the officers servants and consultants so appointed.

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

(3) Where any officer of the public service is temporarily appointed to the staff of the Commission 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.

(4) Where any officer in the public service is permanently appointed to the staff of the Commission, 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.

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

(1) At the request of the Commission any officer or servant of a public corporation may, with consent of such officer or servant and the governing board of such corporations, be temporarily appointed to the staff of the Commission for such period as may be determined by the Commission with like consent or with like consent be permanently appointed to the staff of the Commission on such terms and conditions, including those relating to pension or provident fund rights, as may be agreed upon by the Commission 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 Commission he shall be subject to the same disciplinary control as any other member of the staff.

(1) For the purpose of enabling the Commission to exercise, perform and discharge any of its powers, duties and functions under section 5 of this Act, the Commission or any person authorized in that behalf by the Commission may by notice in writing require any person to furnish to the Commission or to the person authorized, within such period as shall be specified, in the notice, all such returns or information pertaining to any business affairs or transactions of any public enterprise as are known to or in the possession of any person as shall be specified in such notice.

(2) It shall be the duty of any person who is required to furnish any return or information by a notice under subsection (1) to comply with such requirement within the time specified in such notice, except where such person is precluded from making such return or divulging such information under the provisions of any law.

(3) The Commission or any member thereof or any officer or servant of the Commission, shall not disclose to any person or use any returns or information furnished under subsection (1), except when required to do so by a court of law or for the purposes of achieving the objects of the Commission.

(1) No suit or prosecution shall be instituted against any member of the Commission or against any of the officers or servants of the Commission for any act which in good faith is done or purported to be done by such members, officer or servant under this Act or on the direction of the Commission.

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

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

(1) Any person who-

(2) Where an offence under this Act is committed by a body of persons, then-

Provided that a director or an officer of such body corporate, or a partner of such firm shall not be deemed to be guilty of such offence, if he proves that such offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

(1) From and after the inclusion of the Commission under section 8 of the Inland Revenue Act, No. 28 of 1979, the profits and income of the Commission shall be exempt from income tax.

(2) From and after the inclusion of the Commission under section 9 of the inland Revenue Act, No. 28 of 1979, the emoluments of every officer, servant and consultant of the Commission shall be exempt from income tax.

(3) A donation made in money or otherwise to the Commission shall be deemed, for the purposes of the Inland Revenue Act, No. 23 of 1979, to be a donation made in money or otherwise to a fund established by the Government.

(1) The Commission may, with the approval of the Minister, make rules relating to the exercise, performance and discharge of the powers, duties and functions conferred or imposed on or assigned to the Commission, and relating to matters in respect of which rules are authorized to be made by this Act.

(2) Every rule made under subsection (1) shall come into force 'upon it's publication in the Gazette.