Press briefing of Cabinet Decision taken on 2015-12-09

Secured Transactions Registry Bill

- Secured Transaction Act, No.49 of 2009 was introduced to enable the Small and Medium scale Enterprises to obtain loans from Banks and Financial Institutions by keeping movable properties such as machinery owned by such enterprises, where the said enterprises do not have access to any immovable property such as lands, to produce as a collateral. However, it has become difficult to achieve the objectives expected to be accomplished through this Act, due to the issues arise in enforcing certain provisions of the same. Accordingly, the proposal made by the Prime Minister, Hon. Ranil Wickremasinghe, in his capacity as the Minister of National Policies and Economic Affairs, to repeal the Secured Transaction Act, No.49 of 2009 and to draft new Legislation to suit with the present needs, was approved by the Cabinet.