Press briefing of Cabinet Decision taken on 2016-05-10

Corporate Legal Reforms in Corporate Bankruptcy Laws

- It has been observed that the provisions available in the Insolvency Ordinance, No.24 of 1884 are not at all sufficient to deal with the issues pertaining to the modern day ailing business ventures. Also the necessity of introducing a new set of laws relating to bankruptcy has arisen in order to restructure the State Owned Enterprises. If suitable and effective laws to handle bankruptcy situations could be enacted, Sri Lanka will be able to gain a higher place in the 'Ease of doing business' index. Therefore, the proposal made by Hon. Ranil Wickremasinghe, the Prime Minister, to instruct the Legal Draftsman to draft legislation to amend the Companies Act, No.07 of 2007, with a view to introducing a Bankruptcy Law which suits the present day requirements, was approved by the Cabinet.