(1) There shall be established an authority which shall be called the " Southern Development Authority of Sri Lanka " (hereinafter referred to as the " Authority ") consisting of the persons who are members thereof under Section 4.

(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 and be sued in its corporate name.

(1) The Authority shall be responsible for coordinating the planning and implementation of development projects within the area as specified in the Schedule hereto (hereinafter referred to as the "designated area") and shall for that purpose, exercise, perform and discharge all or any of the powers, duties and functions conferred or imposed on it by or under this Act.

(2) Notwithstanding the provisions of subsection (1), the Authority shall have the power to maintain any office or stores outside the designated area and execute outside such designated area any such work as may be necessary for the discharge of its functions under this Act-

(a) an officer of the Ministry of the Minister nominated by such Minister;

(b) an officer of the Ministry of the Minister in charge of the subject of Finance nominated by such Minister and

(c) five other members (hereinafter referred to as " appointed members" ).

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

(2) The Chairman shall preside at all meetings of the Authority, and in his absence, the members present shall elect one of the members to preside at such meeting.

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

(4) The President may without assigning any reason therefor, terminate the appointment of the Chairman.

(5) The Chairman may at any time resign from the office of Chairman by letter addressed to the President. Such resignation shall take effect upon it being accepted by the President in writing.

(6) Subject to the provisions of subsections (4) and (5) the term of office of the Chairman shall be his membership of the Authority.

(1) Every appointed member shall hold office for a period of five years from the date of his appointment, unless he vacates office earlier by death, resignation or removal.

(2) Any appointed member may at any time resign his office by letter addressed to the President and such resignation shall take effect upon it being accepted by the President in writing.

(3) The President may, by Order published in the Gazette remove, any appointed member of the Authority from office without assigning any reason therefor and such removal shall not be questioned in any court.

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

(5) In the event of the vacation of office by any appointed member, the President may appoint any other person to fill such vacancy and such person shall hold office for the un-assigned term of office of the member when he succeeds.

(6) Where an appointed member is temporarily unable to perform the duties of his once on account of ill-health absence from the Republic or any other cause, the president may appoint another person to act in place of such member.

(a) a Member of Parliament or a Provincial Council or a member of a local authority ; or

(b) under any law in force in Sri Lanka or in any other country, found or declared to be of unsound mind ; or :

(c) a person who, having been declared an insolvent or a bankrupt under any law in Sri Lanka or in any other country, is an undischarged insolvent or bankrupt; or

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

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

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

(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 Authority both of where shall sign the instrument or document in tokon 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 Authority 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 Authority shall maintain a register of the instruments and documents to which the seal of the Authority is affixed.

(a) plan and implement development projects in the designated area to improve productivity foster economic development and generate income and employment opportunity ;

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

(c) request the Ministry of the Minister to seek foreign funding for specific projects or programmes ;

(d) secure the co-operation of Government Departments, State Institutions, local authorities, public corporations and other persons whether private or public, in carrying out studies referred to in paragraph (b) and implementation of development projects in the designated area ; and

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

(a) secure and obtain technical and financial assistance from local and foreign sources in fulfilling the objects of the Authority ;

(b) secure local and foreign collaboration for carrying out studies and implementation of special development projects in the designated area ;

(c) require Government Ministries, Departments and all other agencies responsible for the implementation of the projects being carried on in the designated area, to co-operate in planning and implementing such projects ;

(d) with the concurrence of the President request Government Ministries, Departments or other authorities to take over, maintain and operate any development project commissioned by the Authority ;

(e) establish its own departments or agencies for the purpose of any work involved in the discharge of its functions ;

(f) carry out research relating to the economic and social development of the designated area ;

(g) prepare and environmental impact assessment report in respect of any development projects within the designated area ;

(h) 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 ;

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

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

(k) Implement development projects through any public or private institution or jointly by private public institution ;

(l) with the concurrence of the Minister in charge of the subject of Finance, to borrow, raise money or secure obligations from sources in Sri Lanka ;

(m) acquire in any manner whatsoever and hold, take or give on lease or hire, mortgage, pledge, sell or otherwise dispose of, any immovable property ; and

(n) 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) Notwithstanding anything to the contrary in any other law, where the Authority considers it necessary for the purposes of this Act, the Authority may, with the approval of the President, in or in relation to designated area gave special or general directions to any of the Departments or Corporations requiring any such Department or Corporation to perform such functions or duties relating to a development project as the Authority may determine.

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

(3) Subject to the provisions of the Constitution 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 in any designated area is required by the Authority for any of its purposes, and the Minister, by Order published in the Gazette, approves of the proposed acquisition, that land or interest in any land, it shall be deemed to be required for a public purpose and may accordingly be acquired under the Land Acquisition Act and be transferred to the Authority.

(2) In any case where any land or any interest in any land in the designated area is to be acquired under the Land Acquisition Act for any purpose of the Authority and public notice of the intention to acquire that land or interest is published as required by that Act at any time within the period of three years of the date of commencement of this Act, 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) Any sum payable as compensation for the acquisition of any land or interest in any land under subsection (1) for the Authority, shall be paid by the Authority.

(1) The Authority shall have its own Fund. There shall be paid into the Fund-

(2) There shall be paid out of the Fund, all such sums of money required to defray any expenditure incurred in the management of the affairs of the Authority and the transaction of its affairs.

(3) The Authority shall have with the approval of the President the power to make rules relating to the withdrawal of any moneys from the Fund and no sum shall be withdrawn from the Fund except in accordance with such rules.

(1) Notwithstanding the provisions of any other written law to the contrary, the Authority may for the purpose of discharging any of its functions, allocate funds to any public corporation, or to any Department of Government 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 duty account for the expenditure incurred in discharging such functions.

(2) The Authority shall be entitled to require any corporation or 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 Authority shall cause proper books of accounts to be kept of the income and expenditure, assets and liabilities and all other transactions of the Authority,

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

(a) all goods of any description imported or purchased out of bond by the Authority, shall be exempt from custom duty ;

(b) the Authority shall be exempt from the payment of stamp duty on any instrument executed by, or on behalf of, or in favour of, the Authority in case where, but for this exemption the Authority would be liable to pay the duty chargeable in respect of such instrument.

(1) The Government is hereby authorized to guarantee, on such terms and conditions as the Government may determine, loans raised by the Authority from any local, international or foreign organization approved by the President. The loans authorized to be guaranteed under this subsection may be denominated in foreign, currency.

(2) All such sums payable by the Government under any guarantee given under subsection (1), are hereby charged on the Consolidated Fund.

(3) All sums payable by the Authority in respect of principal, interest and other charges on any loan to the Authority from any international or foreign organization approved by the President under any guarantee given under subsection (1) in respect of such a loan, may, notwithstanding anything to the contrary in any law of Sri Lanka, be paid-

(4) For the purposes of subsection (3), the question whether a person is or is not resident in Sri Lanka shall be determined in accordance with the provisions of the Inland Revenue Act No, 28 of 1979.

(5) Every guarantee agreement between the Government and any international or foreign organization 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 Sri Lanka, be valid and enforceable in accordance with their respective terms.

(6) 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 revaluation of the rupee in relation to the currency or currencies in which that loan is expressed and the amount of every such loss is hereby charged to the Consolidated Fund.

(7) The President or any person authorized in that behalf by the President, by instrument under his hand is hereby empowered on behalf of the Government to sign any guarantee agreement between the Government and any local, international or foreign organization.

(1) The Chairman shall be the Director-General of the Authority, and shall be its chief executive officer.

(2) The Director-General shall, subject to the general direction and control of the Authority, be charged with the direction of the affairs and transactions of the Authority, the exercise, discharge and performance 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 powers, function or duty conferred or imposed on, or assigned to, him by this Act and such officer or servant shall exercise, discharge and perform such powers, function or duty subject to the general or special directions of the Director-General,

(1) The Authority may appoint such officers and servants 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 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 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 of 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 such staff.

(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 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.

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

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

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

(1) The Minister may in consultation with, the Authority, 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 and the Authority shall carry out such, directions.

(2) The Minister may from time to time, direct the Authority in writing 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 and the Authority shall carry out every 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 is 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.

(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 and shall be as valid and effectual as if it were herein enacted.

(3) Every regulation shall as soon as it is convenient after its publication in the Gazette be brought before the 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 any thing 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.

(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 later date as may be specified therein.