18.
| (1) Subject to the provisions of subsection (2) where any person who mines for gems on State land or an any land over which any mining or gemming rights remain with the State and such person has acquired such land and such mining or gemming rights by way of an auction, the price paid at such auction by such person shall be deemed to include a royalty in lieu of any gems that may be found on such land. |
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| (2) Notwithstanding the provisions of subsection (1) where any Person who mines for gems on State land or on any land over which the mining of gemming rights remain with the State and such person has acquired such land or such mining or gemming rights otherwise than by way of an auction, such person shall deliver to the Authority any gems obtained by him from such land. |
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| (3) Where any gem is delivered to the Authority under subsection (2), the Authority may
| | (a) make arrangements to sell such gem to any other person or persons with the consent of the licence; or | | |
| | (b) decline to make arrangements to sell such gem. | | |
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| (4) Where any gem delivered to the Authority under subsection (2) is sold to any other person as a result of arrangements made by the Authority, the Authority shall retain as its royalty a prescribed portion of the proceeds of the sale of such gem. |
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| (5) Where the Authority declines to make arrangements to sell any gem delivered to the Authority under subsection (2), the Authority shall return such gem to the person who delivered it to the Authority together with a document stating that the Authority has declined to make arrangements for the sale of such gem, but shall charge as royalty a prescribed portion of the market value of such gem as may be determined by the Authority. |
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| (6) No person shall purchase from any other person any gem obtained by such other person by mining on any such land as is referred to in subsection (2), unless the Authority has declined to make arrangements for its sale. |
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Sri Lanka Consolidated Acts