Act No. 7 of 1978

(2) The Fund 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 such name.

(2) The Board of Governors of the Fund (hereinafter referred as “the Board”) shall consist of-

(a)   The President of the Republic;

(b)   the Prime Minister;

(c)    the Speaker;

(d)   the Leader of the Opposition;

(e)   the Secretary to the President; and

(f)     two other members appointed by the President, each of whom shall, subject to the provisions of subsections  (3) and (4), hold office for such period as may be specified in the letter of appointment issued to him by the President.

(3) The President may in his absolute discretion revoke the appointment of any number appointed by him under paragraph (f) of subsection (2).

(4) Any number of the Board appointed under paragraph (f) of subsection (2) may at any time resign from the Board by a letter in that behalf addressed to the President.

(5) The Board may regulate the procedure in regard to its meetings and the transaction of business at such meetings.

(6) No act or proceeding by the board shall be deemed to be invalid by reason only of the existence of a vacancy among its members or any defect in the appointment of a member thereof.

(7) The President shall be the Chairman of the Board.

(a)   acquire, hold or manage property, whether movable or immovable;

(b)   sell, mortgage, exchange or otherwise dispose of, or deal with, any property whether movable or immovable, to which the Fund may become entitled;

(c)    perform all such acts or thins as may be necessary to give effect to the provisions of this Act.

(2) With effect from the 24^th day of November, 1978, all moneys lying to the credit of the account named the “President’s Fund Suspense Account” maintained ant the Central Bank shall vest in the Fund.

(a)   all moneys which vest in the Fund by reason of the operation of subsection (2) of section 4; and

(b)   all moneys that may accrue to the Fund after the 24^th day of November, 1978.

(a)   for the relief of poverty ; or

(b)   for the advancement of education or knowledge ; or

(c)    for the advancement of religion or the maintenance of religious rites and practices; or

(d)   for other purpose, which is in the opinion of the President and the Board, of benefit or interest to the Public.

(a)   to appoint such officers and servants of the Fund as may be necessary for the administration and management of the affairs of the Fund,

(b)   to determine the remuneration payable to the officers and servants so appointed,

(c)    to pay such remuneration and the other expenses incurred in the administration of the affairs of the Fund, out of the income of the Fund.

(2) The Auditor-General shall audit the accounts of the Fund every year. For the purpose of assisting him in the audit of such accounts, the Auditor-General may employ the services of any qualified auditor who shall act under his direction and control.

(3) For the purpose of meeting the expenses incurred by him in the audit of the accounts of the Fund, the Auditor-General shall be paid out of the income of the Fund, such remuneration as the Board may determine. Any remuneration received from the Fund by the Auditor-General shall, after the deduction therefrom of any sums paid by him to any qualified auditor or auditors employed by him for the purpose of such audit, be credited to the Consolidated Fund.

(4) The Auditor-General shall, as soon as practicable after the thirty-first day of December of each year, prepare a report on the administration of the Fund during that year together with a statement of the income and expenditure of the Fund, and of the investment of the moneys belonging to the Fund, during that year.

(5) In this section, the expression “qualified auditor” means-

(a)   an individual who, being a member of the Institute of Chartered Accountants of Sri Lanka or of any other institute established by law, possesses a certificate to practise as an Accountant issued by the Council of such Institute; or

(b)   a firm of Chartered Accountants each of the resident partners of which, being a member of the Institute of Chartered Accountants of Sri Lanka or any other Institute established by law, possesses a certificate to practise as an Accountant issued by the Council of such Institute.