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Bill to ratify Lanka’s membership in AIIB
View(s):The Government will introduce a Bill in Parliament next month to give effect to its membership in the China-led Asian Infrastructure Investment Bank (AIIB), authorise the ratification of the agreement it signed with the AIIB and establish the Bank’s office in Sri Lanka.
The Bill titled the Asian Infrastructure Investment Bank Agreement (Ratification) Act of 2016 provides for the Finance Minister, on behalf of the Government, to ratify, accept or approve the Articles of Agreement establishing the AIIB, to which Sri Lanka is a signatory.
The Bill also provides for monies to be paid out of the Consolidated Fund from time to time and for such monies to be paid by raising loans and by the creation and issue to the Central Bank of Sri Lanka of non-interest bearing and non-negotiable promissory notes or obligations.
The Central Bank is authorised by the Bill to accept and hold any promissory notes or obligations created and issued in accordance with its provisions.
The Bill will also provide for the Bank to have in Sri Lanka the status, immunities, privileges and exemptions in keeping with the provisions of the Agreement or as granted in terms of the Diplomatic Privileges Act, No. 9 of 1996 or any other written law.
Sri Lanka signed the Articles of Agreement with AIIB in June last year.
Founded in October 2014, the AIIB is a development bank with 21 Asian member countries – China, India, Thailand, Malaysia, Singapore, the Philippines, Pakistan, Bangladesh, Brunei, Cambodia, Kazakhstan, Kuwait, Laos, Myanmar, Mongolia, Nepal, Oman, Qatar, Sri Lanka, Uzbekistan and Vietnam), with a registered capital of US$100bn.