Press briefing of Cabinet Decision taken on 2023-06-26

Insolvency Law Reform

- Provisions relating to Consumer insolvency and Unincorporated small business bankruptcy are contained in the Insolvency Ordinance 1853, and provisions relating to company bankruptcy are contained in the Companies Act No. 7 of 2007. As the existing provisions under the said laws are not sufficient to fulfill the present needs, it is apparent that there is a need to introduce a new law on joint bankruptcy. Accordingly, the joint proposal made by the Hon. President and the Minister of Justice, Prison Affairs and Constitutional Reform to authorize the Law Commission to prepare and submit an initial draft within a period of three (03) months in consultation with the relevant parties, was approved by the Cabinet.