EXCHANGE CONTROL

(1) The Central Bank of Ceylon shall, as agent of the Government, be responsible for carrying out the provisions of this Act, and it shall be the duty of the Monetary Board to cause those provisions to be carried out in accordance with such directions as may from time to time be issued in that behalf by the Minister.

(2) The Monetary Board shall establish for the purposes of this Act a Department of Exchange Control of the Central Bank to which the board shall have the power to appoint or assign such officers and servants as the board may consider necessary for the purpose of carrying out the provisions of this Act; every such officer or servant shall, for the purpose of the application of the provisions of the Monetary Law Act relating to officers and servants, be deemed to be employed for the performance of duties under that Act.

(1) Except with the permission of the Bank-

(2) Except with the previous general or special permission of the bank, no person, whether an authorized dealer or not, shall enter into any transaction which involves the conversion of Ceylon currency into foreign currency or foreign currency into Ceylon currency at rates of exchange other than the rates for the time being authorized by subsection (3) of section 76 of the Monetary Law Act.

(1) The foreign currency to which this section applies is such foreign exchange (hereafter in this Act referred to as the ” specified foreign currency”) as may be prescribed.

(2) Every person in, or resident in, Ceylon who is entitled to sell, or to produce the sale of, any gold or any specified foreign currency, and is not an authorized dealer, shall offer it, or cause it to be offered, for sale to an authorized dealer at a price determined by the Monetary Board may fix, unless the bank consents to his retention and use or thereof or he disposes thereof any other person with the permission of the bank.

(3) If a person who has obtained the consent of the bank to his retention and use of any gold or any specified foreign exchange and has stated in an application for the consent that he requires it for a particular purpose, no longer requires that gold or exchange for that purpose, subsection (2) shall thereupon apply to him in relation to that gold or exchange as if the bank had revoked the consent.

(4) A person who acquires any gold or any specified foreign exchange from an authorized dealer shall be treated for the purposes of this section as if the bank had consented to the retention and use by him of that gold or exchange, “and as if any statement made by him in an application for that gold or exchange as to the purpose for which he requires it had been made by him in an application for the consent of the bank to his retention and use thereof.

(5) Where a person has become bound under this section to offer or cause to be offered any gold or any specified foreign exchange for sale to an authorized dealer he shall not be deemed to comply with that obligation by any offer made or caused to be made by him, if the offer is an offer to sell at a price exceeding that authorized by the Monetary Board, or without payment of any usual and proper charges of the authorized dealer, or otherwise on any unusual terms.

(6) Where a person has become bound under this section to offer or cause to be offered any gold or any specified foreign exchange for sale to an authorized dealer and has not complied with that obligation, the Secretary to the Treasury may direct that that gold or exchange shall vest in the Deputy Secretary to the Treasury, and where the Secretary to the Treasury so directs, it shall vest in the Deputy Secretary to the Treasury free from any mortgage, pledge, or charge, and the Deputy Secretary to the Treasury shall deal with or dispose of it in such manner as the Minister may direct, but the Deputy Secretary to the Treasury or any officer authorized in that behalf by such Deputy Secretary shall pay to that person such sum as he would have received for that gold or exchange if he had sold it to an authorized dealer in pursuance of an offer made under this section at the time when the vesting occurred. Any money required for any payment under this subsection is hereby charged upon the Consolidated Fund.

(7) In any proceedings in respect of a failure to comply with the provisions of this section, it shall be presumed, until the contrary is proved, that the gold or exchange in question has not been offered for sale to an authorized dealer.

(a) make any payment to or for the credit of a person resident outside Ceylon, or

(b) make any payment to or for the credit of a person resident in Ceylon by order or on behalf of a person resident outside Ceylon, or

(c) place or hold any sum to the credit of any person resident outside Ceylon;

(1) Except with the permission of the bank, no person resident in Ceylon shall, subject to the provisions of this section, make any payment outside Ceylon to or for the credit of a person resident outside Ceylon.

(2) Nothing in this section shall prohibit the doing of anything otherwise lawful by any person with any foreign currency obtained by him in accordance with the provisions of Part I of this Act or retained by him with the consent of the bank.

(1) Except with the permission of the bank no person shall in Ceylon, and no person resident in Ceylon shall outside Ceylon, make any payment to or for the credit of a person resident in Ceylon as consideration for or in association with-

(2) Nothing in this section shall prohibit the making of any payment in accordance with the terms of a permission or consent granted under this Act.

(1) Except with the permission of the bank, no person shall in Ceylon issue any security or, whether in Ceylon or elsewhere, issue any security which is registered or to be registered in Ceylon, unless the following requirements are fulfilled :-

(2) The subscription of the memorandum of association of a company to be formed under the Companies Ordinance by a person resident outside Ceylon, or by a nominee for another person so resident, shall, unless he subscribes the memorandum with the permission of the bank, be invalid in so far as it would on registration of the memorandum have the effect of making him a member of the company, so, however, that this subsection shall not render invalid the incorporation of the company, and if by virtue of this subsection the number of the subscribers of the memorandum who on its registration become members of the company is less than the minimum required to subscribe the memorandum, the provisions of the said Ordinance relating to the carrying on of business of a company the number of whose members is reduced below the legal minimum shall apply to the company as if the number of its members had been so reduced.

(1) No person shall, except with permission granted by the bank, transfer any security, either on his own behalf or on coupons. behalf of any other person, unless-

(2) No person shall, except with permission granted by the bank-

(3) Except with the permission of the bank, no coupon shall be transferred-

(a) that a security which is-

(b) that, in substitution for or in addition to any such certificate of title to the first-mentioned security as is in, or is or has been lost or destroyed in, Ceylon, a certificate of title to any other security is issued outside Ceylon.

(a) enter in the register the name of any person in relation to any security unless there has been produced to him the prescribed evidence that the entry does not form part of a transaction which involves the doing of anything prohibited by this Act, or

(b) enter in the register, in respect of any security, an address outside Ceylon, except for the purpose of any transaction for which the permission of the bank has been granted with the knowledge that it involves the entry of that address, or

(c) do any such act in relation to the register as recognizes or gives effect to any act appearing to him to have been done with the intent mentioned in section 13 or section 14, whether done by a person in or resident in Ceylon or not.

(1) Where the holder of a security is a nominee, then, except with the permission of the bank, neither he, if he is resident in Ceylon, nor any person resident in Ceylon through whose agency the exercise of all or any of the holder’s rights in respect of the security is controlled, shall-

(2) Where the holder of a security is not a nominee and is resident in Ceylon, then, except with the permission of the bank, he shall not do any act whereby he becomes the nominee of another person in respect of the security, unless that other person is resident in Ceylon and not elsewhere.

(3) Where the holder of a security transferable by means of a bearer certificate is resident in Ceylon and is a nominee for a person resident outside Ceylon, then, except with the permission of the bank, he shall not deliver the certificate into the possession of any person, whether the delivery amounts to a transfer or not.

(1) This section shall apply to prescribed securities on which any capital money, dividend or interest is payable in a specified foreign currency or as respects which the holder has an option to require payment of any capital money, dividend or interest thereon in a specified foreign currency.

(2) Except with the permission of the Minister, no person shall, in Ceylon, and no person resident in Ceylon shall, outside Ceylon, transfer or do anything which affects his rights or powers in relation to any such security to which this section applies.

(3) The bank may in writing direct any person resident in Ceylon by whom or to whose order a security to which this section applies is held in or outside Ceylon to render a return to the bank, in such manner and within such period as may be specified in the direction, giving such particulars with respect to that security as may be so specified.

(4) The Minister may direct any person resident in Ceylon by whom or to whose order a security to which this section applies is held in or outside Ceylon-

Any direction under this subsection may be given either generally, with respect to specified securities and the holders thereof by notice published in the Gazette, or specially to any holder by notice in writing.

(1) The title of any person to a security for which he has given value on a transfer thereof, and the title of all persons claiming through or under him, shall, notwithstanding that the transfer, or any previous transfer, or the issue of the security, was by reason of the residence of any person concerned other than the first-mentioned person prohibited by the provisions of this Act relating to the transfer or issue of securities, be valid unless the first-mentioned person had notice of the facts by reason of which it was prohibited.

(2) Without prejudice to the provisions of subsection (1), the bank may issue a certificate declaring in relation to a security, that any such acts done before the issue of the certificate as purport to effect the issue or transfer of the security, being acts which were prohibited by this Act, are to be, and are always to have been, as valid as if they had been done with the permission of the bank, and the said acts shall have effect accordingly.

(3) Nothing in this section shall affect the liability of any person to prosecution for any offence against this Act.

(1) This Part of this Act shall, with any modification which may be prescribed in relation to any document mentioned in subsection (2), apply as if the document created, and were the certificate of title to, a security (hereafter in this Act referred to as a ” secondary security “).

(2) The documents referred to in subsection (1) are any letter of allotment which may be renounced, any letter of rights, any warrant conferring an option to acquire a security, any deposit certificate in respect of securities, and such other documents conferring, or containing evidence of, rights as may be prescribed.

(1) In this Part of this Act-

” registered ” includes inscribed ;

” registered in Ceylon ” and

” registered outside Ceylon” mean respectively, registered in a register in, and registered in a register outside, Ceylon; “a register” includes any book, file or index in which securities are registered; and

” holder “-

(2) For the purposes of any provision of this Part of this Act prohibiting the transfer of securities, a person shall be deemed to transfer a security if he executes any instrument of transfer thereof, whether effective or not, and shall be deemed to transfer it at the place where he executes the instrument.

(3) The holder of a security or coupon shall be deemed for the purposes of this Part of this Act to be a nominee in respect of that security or coupon if he is not entitled to exercise any right relating to that security or coupon except in accordance with instructions given by some other person, and references in this Part of this Act to the person for whom the holder of a security or coupon is a nominee shall be construed as references to the person who is entitled to give instructions, either directly or through the agency of one or more persons, as to the exercise of any right relating to the security or coupon and is not in so doing himself under a duty to comply with instructions given by some other person: Provided that-

(1) No person shall, except with the permission of the bank, import into Ceylon-

(2) The bringing or sending into any port or other place in Ceylon of any gold intended to be taken out of Ceylon without being removed from the vessel or aircraft in which that gold is being carried shall, for the purpose of this section, be deemed to be the importation of that gold.

(3) In this section, ” note ” includes part of a note.

(1) No person shall, except with the export permission of the bank, export from Ceylon-

(2) In subsection (1)-

” note ” includes part of a note;

” security ” includes a secondary security; and

” coupon” shall be construed in accordance with the meaning of ** security”.

(3) Where the Minister is of opinion that it is necessary so to do for the purpose of ensuring that payment for good exported from Ceylon are made only to person resident in Ceylon and in such currencies as are suitable in the national interest, he may Order provide that no goods shall, except with the permission of the bank, be exported from Ceylon to any destination specified in the Order.

(4) In granting permission under subsection (3) in respect of the exportation of goods for the purposes of sale, the bank shall satisfy itself-

(5) Where, on the authority of permission granted under subsection (3), a person is about to export goods from Ceylon and the bank has reason to suspect that any declaration made by that person, in his application for the permission, as to the ultimate destination of the goods is untrue in any material particular, the Principal Collector of Customs shall, on the advice of the bank, detain the goods until the bank is satisfied as to the truth of that declaration and, if the bank is not so satisfied, the goods shall be forfeited and shall be dealt with or disposed of in such manner as the Minister may direct.

(6) Where, at any time after the grant of permission under subsection (3), the bank has reason to believe that the amount of the payment that has been made or is to be made for the goods to which the permission relates is not in accord with paragraph (b) of subsection (4), the bank may direct the person holding the shipping documents relating to the goods to retain possession thereof until such time as the person to whom the permission has been granted has made arrangements to receive as payment for the goods an amount which, in the opinion of the bank, accords with the aforesaid paragraph (b).

(8) Any reference in this section to the destination of any goods includes a reference to the ultimate destination thereof.

(9) The preceding provisions of this section shall be in addition to and not in substitution or derogation of the provisions of any other written law prohibiting, restricting or regulating the exportation of goods from Ceylon.

(1) The Customs Ordinance shall apply in relation to anything the importation or exportation of which into or from Ceylon is restricted by any of the provisions of this Part of this Act in like manner as that Ordinance applies in relation to articles the importation or exportation of which into or from Ceylon is restricted by any enactment; and section 24 of the Post Office Ordinance shall, in relation to any such things as aforesaid, have effect as though, for the words ” received from beyond seas ” and the word ” imported” occurring in that section, there were substituted respectively the words “addressed to or received from any place outside Ceylon” and the words ” imported or exported “.

(2) Where anything in relation to which the Customs Ordinance applies by virtue of subsection (1) is forfeited under that Ordinance, such thing shall, notwithstanding any contrary provision in that Ordinance, be dealt with or disposed of in such manner as the Minister may direct.

(3) The importer or exporter of any such forfeited thing as is referred to in subsection (2) may, in accordance with such directions as may be given by the Minister either generally or specially in the circumstances of any particular case, be paid in Ceylon currency an amount not exceeding the value in Ceylon currency of that thing.

(4) Payment to any importer or exporter under subsection (3) shall be made by the Deputy Secretary to the Treasury or by any officer authorized in that behalf by such Deputy Secretary ; and any money required for any such payment is hereby charged upon the Consolidated Fund.

(5) In this section, ” importer” and ” exporter”, with reference to any postal article, mean respectively the addressee and the sender of that article.

(1) Except with the permission of the bank no person who has a right (whether present or future and whether vested or contingent) to receive any foreign currency, or to receive from a person resident outside Ceylon a payment in rupees, shall do, or refrain from doing, any act with intent to secure-

(2) Where a person has contravened the provisions of subsection (1) in relation to any foreign currency or any payment in rupees-

(1) Where any statement or declaration has been made under any provision of this Act that any goods are to be sold outside Ceylon, no person who is entitled to sell or procure the sale of those goods shall, except with the permission of the bank, do or refrain from doing any act with intent to secure-

(2) Where any permission or consent has been granted under this Act subject to a condition providing that, or on the faith of an application stating an intention that, any goods should be imported into Ceylon, no person who is entitled to procure the importation of those goods shall do, or refrain from doing, any act with intent to secure that the importation thereof is delayed to an extent which is unreasonable having regard to the ordinary course of trade.

(3) Where in any such case as is specified in subsection (1) or subsection (2)-

(4) Without prejudice to the provisions of subsection (3), the Secretary to the Treasury may in any case to which those provisions apply give directions that the goods shall be assigned to the Deputy Secretary to the Treasury.

(1) Where a person-

(2) Without prejudice to the provisions of subsection (1), the Secretary to the Treasury may in any case to which those provisions apply give directions that the property shall be assigned to the Deputy Secretary to the Treasury.

(1) Where, under the preceding provisions of this Part of this Act, the Secretary to the Treasury has power to give directions that any right to receive any currency or any payment in rupees or to enforce any security for the receipt thereof, any goods, or any other property shall be assigned to the Deputy Secretary to the Treasury, the Secretary to the Treasury shall also have power to direct that the right, goods, or property shall vest in the Deputy Secretary to the Treasury, and in any such case it or they shall vest in the Deputy Secretary to the Treasury free from any mortgage, pledge, or charge, and the Deputy Secretary to the Treasury shall deal with or dispose of it or them in such manner as the Minister may direct.

(2) Where, in pursuance of directions under the preceding provisions of this Part of this Act, any right, goods, or property is or are assigned to the Deputy Secretary to the Treasury, or any right, goods, or property vests or vest in the Deputy Secretary to the Treasury in pursuance of directions given under subsection (1), the Deputy Secretary to the Treasury or any officer authorized in that behalf by such Deputy Secretary shall pay the net sum recovered by the Deputy Secretary to the Treasury in respect of the right, goods, or property to the person making the assignment or, in the case of any right, goods, or property vested in the Deputy Secretary to the Treasury under subsection (1), to the person, who, but for the directions, would be entitled to the right, goods or property,

(1) Except with the permission of the bank, no person resident in Ceylon shall transfer to a person who is resident outside Ceylon or is a nominee for a person resident outside Ceylon, any right to the sums assured by any policy of assurance, so, however, that where the person liable for the sums so assured makes any payment thereof to a person resident in Ceylon and not elsewhere, or makes with the permission of the bank, any payment thereof to any other person-

(2) Subsections (2) and (3) of section 18 shall apply in relation to any transfer prohibited by this section as they apply in relation to a transfer prohibited by this Act of a security,

(3) In this section, ” nominee”, in relation to any policy of assurance, has the same meaning as is assigned to it by subsection (3) of section 20 in relation to a security.

(1) Except with the permission of the bank, no person resident in Ceylon shall-

(2) A settlement or an exercise of a power of appointment shall not be invalid by reason that it is prohibited by this section, except so far as it purports to confer an interest in any property on any person who, at the time of the settlement or the exercise of the power of appointment, is resident outside Ceylon.

(3) Subsections (2) and (3) of section 18 shall apply in relation to a settlement or the exercise of a power of appointment prohibited by this section as they apply in relation to a transfer prohibited by this Act of a security.

(4) For the purposes of this section-

(1) Except with the permission of the bank no person resident in Ceylon shall do any act whereby a body corporate which is by any means controlled (whether directly or indirectly) by persons resident in Ceylon ceases to be controlled by persons resident in Ceylon :

Provided that the preceding provisions of this subsection shall not prohibit any person from selling any securities, subject to compliance with the requirements of Part III of this Act.

(2) Except with the permission of the bank, no person resident in Ceylon shall lend any money, Treasury Bills or securities to any body corporate resident in Ceylon which is by any means controlled (whether directly or indirectly) by persons resident outside Ceylon :

Provided that the preceding provisions of this subsection shall not apply where the lender after making such inquiries as are reasonable in the circumstances of the case does not know and has no reason to suspect that the body corporate is controlled as aforesaid.

(3) For the purposes of this section, persons resident in Ceylon or outside Ceylon shall be deemed to control a body corporate notwithstanding that other persons are associated with them in the control thereof if they can together override those other persons.

(4) In this section the expression “security” includes a secondary security.

(1) Where under any provision contained in Part II of this Act, the permission of the bank is required for making of a payment, or the placing of any sum, to the credit of any person resident outside Ceylon, the bank may direct that the sum payable or to be credited shall be paid or credited to a blocked account only.

(2) Where the bank directs that a payment shall be made to a blocked account only, then, subject to the provision of subsection (3) –

(3) Where a direction is given by the bank that a sum shall be paid or credited to a blocked account only, then, notwithstanding that direction, that sum may, with the consent of the person to whom it is to be paid or credited, and subject to the requirements of Part III of this Act, be invested instead in the purchase for that person of any such investment as may be prescribed for the purposes of paragraph (a) of the
proviso to subsection (4).

(4) Any sum standing to the credit of a blocked account shall not be dealt with except with permission of the bank.

(5) Where a person in whose name a blocked account is standing is declared an insolvent under the law of Ceylon or dies, the banker may, notwithstanding anything in subsection (4), transfer the account to the name of the assignee of the insolvent’s estate or the executor of the last will, or the administrator of the estate, of the deceased, but, save as aforesaid, no change shall, except with the permission of the bank, be made in the name in which the account stands ; and where any such change in made (whether or not the permission of the bank is necessary therefor) the account shall remain a blocked account notwithstanding the change, and the provisions of this section shall apply accordingly.

(6) Where-

(7) In this section-

” blocked account” means an account opened as a blocked account at an office or branch in Ceylon in favour of any person by a banker authorized by the bank to open blocked accounts, and

” banker”, in relation to any person, means a banker who opens a blocked account in favour of that person.

(1) The Minister may by Order published in the Gazette provide that, for such of the purposes of this Act as may be specified in the Order-

(2) Any reference in subsection (1) to a branch of a business shall be deemed to include a reference to the head office of that business.

(3) Subsections (1) and (2) shall apply in relation to any body of persons (whether corporate or unincorporate carrying on any activity, whether for the purpose of profit or not, as they apply in relation to a business.

(1) It shall be an implied condition in any contract that, where, by virtue of this Act, the permission or consent of the bank is at the time of the contract required for the performance of any term thereof, that term shall not be performed except in so far as the permission or consent is given or is not required:

Provided that the preceding provisions of this subsection shall not apply to that term in so far as the application of those provisions to that term is inconsistent with the intention of the parties to that contract, whether by reason of their having contemplated the performance of that term in despite of the provisions of this Act or for any other reason,

(2) Notwithstanding anything in the Bills of Exchange Ordinance, neither the provisions of this Act nor any condition, whether express or to be implied having regard to those provisions, that any payment shall not be made without the permission of the bank under this Act, shall be deemed to prevent any instrument being a bill of exchange or promissory note.

(1) The provisions of Part II of this Act shall apply to sums required to be paid by any judgment or order of any court or by any award as they apply in relation to other sums, and it shall be implied in any judgment or order of any court in Ceylon, and in any award given under the law of Ceylon, that any sum required to be paid by the judgment, order or award (whether as a debt, as damages or otherwise) to which those provisions apply shall not be paid except with the permission of the bank.

(2) Nothing in this Act shall be construed as preventing the payment by any person of any sum into any court in Ceylon, but the provisions of Part II of this Act shall apply to the payment of any sum out of court, whether under an order of the court or otherwise, to or for the credit of any person resident outside Ceylon.

(3) In any insolvency proceedings, winding up of a company, or administration of the estate of a deceased person, carried on under the law of Ceylon, a claim for a sum not payable without the permission of the bank shall, notwithstanding that the permission has not been given or has been revoked, be admitted to proof as if the permission had been given and had not been revoked:

Provided that nothing in the preceding provisions of this subsection shall be construed as affecting the application of the provisions of Part II of this Act to payments by the assignee of the insolvent’s estate, or by the liquidator, or by the executor of the last will, or administrator of the estate, of the deceased, or by any other person in such insolvency proceedings, or winding up, or administration.

(4) The provisions of this Act restricting the making of settlements shall not apply to any deed of arrangement made for the benefit of creditors generally, and the provisions of subsection (3) shall apply in relation to proceedings under any deed of arrangement as they apply in relation to insolvency proceedings.

(5) Where the permission of the bank is required under this Act for the payment of a debt the amount of which is sufficient under section 18 of the Insolvency Ordinance, to enable the creditor to petition for the sequestration of the estate of the debtor if the debtor commits an act of insolvency, the debt may, notwithstanding the aforesaid requirement, be allowed to be a good petitioning creditor’s debt, if and to the extent that the debt can be satisfied either by a payment into court or by a payment to a blocked account.

(1) Where any question arises as to the territory in which a person is or is not resident, the territory in which such person shall, for the purposes of this Act, be treated as resident or not resident, as the case may be, shall be determined in accordance with such general or special directions as may be given in that behalf by the Minister.

(2) For the purposes of this Act, the executor of the last will or the administrator of the estate of a deceased person shall, unless the Minister otherwise directs, be treated in respect of any matters in which such executor or administrator is concerned solely in his capacity as such, as resident-

(a) to bankers and to persons who are concerned with the keeping of any register in Ceylon or are entrusted with the payment of capital moneys, dividends or interest in Ceylon, directions as respects the exercise of any functions exercisable by them by virtue of, or by virtue of anything done under, any provision of this Act, and

(b) to authorized dealers-

(1) Without prejudice to any other provisions of this Act, the bank may give to any person in, or resident in, Ceylon directions requiring him to furnish, within such time and in such manner as may be specified in such directions, to the bank or to any person designated in such directions as a person authorized to require it, any information in his possession which the bank or the person so authorized, as the case may be, may require for the purpose of securing compliance with, or detecting evasion of, the provisions of this Act, or where such person does not have the information in his possession, to obtain such information from any such person in Ceylon or abroad as may be specified in such directions and to furnish such information to the bank or to the person authorized; or

(2) A person required by any directions given under subsection (1) to furnish information shall also produce such books, accounts or other documents in his possession or control as may be required, for the purpose referred to in subsection (1). by the bank or by the person authorized to require the information, as the case may be.

(3) Nothing in the preceding provisions of this section shall be taken to require any person who has acted as counsel or attorney-at-law for any person to disclose any privileged communication made to him in that capacity.

(4) Where a person is convicted for failing to give information or produce any books, accounts or other documents when required so to do under this section, the court may make an order requiring the offender, within such period as may be specified in the order, to comply with the requirements to give the information or produce the books, accounts or other documents.

(1) If a Magistrate is satisfied by information given on oath or affirmation, by a person authorized by the Minister to act for the purposes of this section, either-

(2) A person authorized by a warrant granted under subsection (1) to search any premises or any vehicle, vessel or aircraft, may search every person who is found in, or whom he has reasonable ground to believe to have recently left or to be about to enter, those premises or that vehicle, vessel or aircraft, as the case may be, and may seize any article which is found in the premises or in the vehicle, vessel or aircraft and which he has reasonable ground for believing to be evidence of the commission of any offence against this Act, or any books, accounts or other documents which he has reasonable grounds for believing ought to have been produced under section 39 :

Provided that no female shall, in pursuance of any warrant issued under this section, be searched except by a female.

(3) Where, by virtue of this section, a person has any power to enter any premises, he may use such force as is reasonably necessary for the purpose of
exercising that power.

(4) No person shall obstruct any other person in the exercise of any powers conferred on that other person by virtue of the preceding provisions of this section.

(1) Any article seized by any authority under or by virtue of this Act which the authority has reasonable ground for believing to be evidence of the commission of an offence against this Act may be retained for a period of three months or, if within that period there are commenced legal proceedings in respect of such an offence in which the article is, or can properly be, adduced in evidence, until the final determination of those proceedings.

(2) The powers conferred by this section in relation to any article shall be in addition to, and not in derogation of, any powers otherwise exercisable in relation thereto.

(a) with intent to evade the provisions of this Act, destroy, mutilate, deface, secrete or remove any books, accounts or other documents, or

(b) in furnishing any information for any of the purposes of this Act make any statement which he knows to be false in a material particular, or recklessly make any statement which is false in a material particular.

(a) general or special,

(b) absolute or conditional,

(c) limited so as to expire on a specified date, unless renewed, and

(d) varied or revoked.

(1) Any person in or resident in Ceylon who contravenes any provision this Act or of any regulation made under this Act or fails to comply with any direction given or condition or requirement imposed under this Act shall be guilty of an offence, notwithstanding that the offence may, by virtue of Part IV of this Act, be also punishable under the provisions of the Customs Ordinance.

(2) Any person who attempts to commit an offence against this Act shall be guilty of an offence.

(3) Where an offence against this Act is committed by a body corporate, any person who at the time of the commission of the offence was a director, general manager, secretary or other similar officer of the body corporate, or was purporting to act in any such capacity, shall be deemed to be guilty of that offence, unless he proves that the offence was committed without his consent or connivance and that he exercised all such diligence to prevent the commission of the offence as he ought to have exercised having regard to the nature of his functions in that capacity and to all the circumstances.

(4) Any person who commits an offence under this Act shall-

(5) Except in the case of a body corporate, the maximum fine which may be imposed for an offence against this Act shall be fifteen thousand rupees so, however, that where the offence is concerned with any gold, currency, security, payment, goods or other property, and does not consist only of a failure to give information or produce books, accounts or other documents with respect thereto when required so to do under section 39, a larger fine may be imposed not exceeding three times the amount or value of the gold, currency, security, payment, goods or property.

(6) A Magistrate before whom a prosecution is instituted against any person for an offence against this Act may, notwithstanding anything in the Code of Criminal Procedure Act, decide whether he will try that person summarily or take non- summary proceedings in respect of that offence:

Provided that the preceding provisions of this subsection shall not affect or prejudice any right or power of the Attorney-General under the aforesaid Code.

(1) Where the amount or value of any gold,
currency, security, payment, goods or other property with which any offence against this Act is concerned does not exceed ten thousand rupees, the Secretary to the Treasury may compound that offence by accepting from the offender a sum of money determined by the Secretary to the Treasury and not exceeding the amount or value of such gold, currency, security, payment, goods or property.

(2) The Secretary to the Treasury shall credit to the Consolidated Fund all sums of money accepted under subsection (1).

(1) The Minister may make such regulations as may be necessary for carrying forms, amp c-out the principles and provisions of this Act.

(2). No regulation made under subsection (1) shall have effect unless it is approved by Parliament and is published in the Gazette.

(3) All applications, returns and other documents made or furnished under this Act shall be in such form as the bank may from time to time specify or provide for the purpose.

(1) In this Act, unless the context otherwise requires-

” authorized dealer ” means, in relation to gold or any foreign currency, a commercial bank for the time being authorized under section 4 to act for the purposes of this Act as an authorized dealer in relation to gold or that foreign currency ;

” bank ” or ” Central Bank ” means the Central Bank of Ceylon established by the Monetary Law Act;

” bearer certificate ” means a certificate of title to securities by the delivery of which (with or without endorsement) the title to the securities is transferable;

” blocked account” has the meaning assigned to it by section 31 (7);

” certificate of title to securities ” means any document of title whereby a person recognizes the title of any other person to securities issued or to be issued by the first-mentioned person, and in the case of any such document with coupons (whether attached or on separate coupon sheets) includes any coupons which have not been detached;

“Ceylon currency” means any currency which is or has at any time been legal tender in Ceylon;

” company ” means a company registered under the enactments relating to of companies from time to time in force in Ceylon or in any other country;

” coupon ” means a coupon representing dividends or interest on a security;

“currency” includes coins, currency notes, bank notes, postal orders, money orders, cheques, drafts, travellers’ cheques, letters of credit, bills of exchange and promissory notes:

“foreign assets “means any movable or immovable property outside Ceylon of any class or description whatsoever and without prejudice to the generality of the preceding provisions of this definition, includes foreign currency, foreign currency, gold and securities;

” foreign currency ” means any currency other than Ceylon currency and includes any drafts, travellers cheques, letters of credit and bills of exchange and any other document expressed or draw in terms of Ceylon currency but payable in any other currency; and any reference to foreign currency includes a reference to any right to receive foreign currency in respect of any credit or balance at a bank;

” foreign currency ” means any currency other than Ceylon currency and includes any drafts,travellers’cheques,letters of credits,bills of exchange and any other documents expressed or drawn in terms pf Ceylon currency but payable in any other currency; and any reference to foreign currency; and any reference to foreign currency includes a reference to any right to receive foreign currency in respect of any credit or balance at a bank;

” gold ” means gold coin or gold bullion;

” Minister ” means the Minister of Finance;

” Monetary Board ” means the Monetary Board of the Central Bank;

” policy of assurance ” means any policy securing the payment of a capital sum or annuity on the occurrence of a specified event which is certain to happen and includes-

” prescribed” means prescribed by the Minister by Order published in the Gazette;

” rupees ” means Ceylon rupees;

” secondary securities ” has the meaning assigned to it by section 19 ;

” securities ” means shares, stock, bonds, capital in any partnership, notes (other than promissory notes), debentures, debenture stock, units under a unit trust scheme and shares in an oil royalty;

” specified foreign currency ” has the meaning assigned to it by section 6;

” unit trust scheme” means any arrangements made for the purpose, or having the effect, of providing for persons having funds available for investment, facilities for the participation by them, as beneficiaries under a trust, in profits or income arising from the acquisition, holding, management or disposal of any property whatsoever;

” unit” means, in relation to a unit trust scheme, a right or interest (whether described as a unit, as a sub-unit, or otherwise) which may be acquired under that scheme.

(2) Any provision of this Act (however worded) the effect of which is to prohibit the doing of any act where a person to or by whom the act is to be done or who stands in a specified relation to any property possesses any specified attribute as to residence or otherwise shall, where the act is done to or by two or more persons or, as the case may be, where two or more persons stand jointly in that relation to the property, operate to prohibit the doing of that act if any of those persons possess that attribute; and any provision of this Act imposing an obligation on any person to do an act if he possesses any specified attribute as to residence or otherwise shall, in relation to any act which can only be done by two or more persons jointly-

(3) Any power conferred by this Act to require declarations which are to be furnished on any occasion shall include a power to require that the declarations shall be made by specified persons and shall be verified in a special manner.