Power to Borrow

The Grama Sasan may with the previous sanction of the State Government and subject to the provisions of this Act and rules made thereunder borrow money from the State Government, any local authority, or any individual or body of individuals corporate or not to carry out its purposes : Provided that nothing contained in the Local Authorities Loans Act, 1914 (9 of 1914) and the rules made thereunder shall apply in respect of money borrowed from the State Government after the commencement of this Act.