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As enacted
Contents

Part IX · General

39. Interpretation

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

In this Act, unless the context otherwise requires –

"Annual Budget Document” means the document prepared pursuant to relevant legislations for public financial management which consists of –

(a)

the estimates of revenue and expenditure in the forms as may be prescribed; and

(b)

the Appropriation Bill that includes, inter alia estimates of expenditure and borrowing ceilings;

“any other entity” means any entity established under the Companies Act, No. 07 of 2007 or any other written law and which is approved by Parliament to receive Government loan guarantees or on-lending funds;

“borrowing” means the procedures for raising funds by concluding loan agreements, obtaining advances from commercial banks and by issuing debt securities and “borrow” shall be construed accordingly;

“Central Bank” means Central Bank of Sri Lanka established by the Central Bank of Sri Lanka

Act, No. 16 of 2023;

“debt” includes all financial liabilities created by –

(i)

borrowing;

(ii)

entering into supplier’s credit agreements and financial lease agreements;

(iii)

issuances of debt securities for any other purpose than borrowing; and

(iv)

assumptions of payment obligations under guaranteed loans that have been called;

“debt of the Government” means liabilities created by debt and debt raised by the entities specified under paragraphs (a) and (b) of section 2;

“debt securities” means securities issued in electronic

(dematerialized) form or in paper form, to named persons or as bearer instruments and may be negotiable or non-negotiable which includes

Treasury bills and bonds, promissory notes, certificates, notes, commercial papers or any other similar instruments by which money is raised from the public;

“derivatives” means instruments used for hedge against the financial risk embedded in the Government debt portfolio and may include interest and currency swaps or such similar instruments;

“finance lease agreements” means a long-term financial arrangement, whereby the user of the asset (the lessee) pays a series of rentals or instalments to the purchaser or the owner of that asset (the lessor) covering the full cost (including the financing costs and a profit margin of the lessor)

of the leased asset and at the end of the lease has the option to acquire the asset at a fixed price;

“financial year” means the calendar year;

“Government” means the Government of the Democratic

Socialist Republic of Sri Lanka;

“guarantee” means an explicit undertaking by the

Government as the guarantor to guarantee the fulfillment of contracted obligations of another legal person or entity under certain specified conditions;

“loan guarantee” means a guarantee where the

Government as the guarantor undertakes to honour the payment obligations of the borrower under the terms of a specific loan;

“local authorities” means all municipal councils, urban councils and pradeshiya sabhas;

“Minister” means the Minister assigned the subject of

Finance under Article 44 or 45 of the

Constitution;

“prescribed” means prescribed by regulations;

“public debt” means liabilities created by debt and debt of entities referred to in paragraphs (a), (b), (c)

and (d) of section 2;

“Sovereign lenders” means Governments of foreign countries with whom Sri Lanka has diplomatic and trade relations or bilateral agreements and which are members of the United Nations

Organization;

“special spending unit” means an entity, other than a

Ministry, Department, District Secretariat or a

Provincial Council that has been given an

Expenditure Head in the relevant Appropriation

Act;

“State owned enterprises” means with the exception of the Central Bank of Sri Lanka and financial institutions including insurance and leasing companies which part or all of whose business is to lend or borrow, an entity that is –

(i)

a Public Corporation within the meaning of the Constitution;

(ii)

entities established and operated under the

Companies Act, No. 07 of 2007 in which the State has direct controlling interest by virtue of its shareholding; or

(iii)

State-owned corporations, converted in terms of the Conversion of Public

Corporations or Government Owned

Business Undertakings into Public

Companies under the Conversion of

Public Corporations or Government

Owned Business undertakings into Public

Companies Act, No. 23 of 1987 or such other Acts in terms of which any business entity has been vested with the

Government.

“statutory funds” means any fund, other than the

Consolidated Fund, created or established by or under any written law for a specific purpose to which public finances are allocated excluding approved termination funds which includes thrift, savings or building society or welfare fund to which contributions are made by employees or, any gratuity fund maintained for the purpose of payment of gratuities to employees on the termination of their services under the relevant written law.

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