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The government says it is working on US styled Chapter 11 bankruptcy laws to resuscitate ailing firms.
The fresh laws will cover sole traders and partnerships, in addition to limited liability companies.
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rnUnveiling its new economic policy, the government says such laws will come under a dedicated agency to speed up the restructuring process.rn

rn"Sri Lanka currently lacks effective institutional mechanisms to facilitate and revive financially troubled enterprises," Finance Minister Dr. Sarath Amunugama told journalists on Thursday.

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rnHe said a dedicated agency and a legislative framework will help fill this lacuna.rn

rnThe private sector has been lobbying for bankruptcy protection laws for some time to give troubled businesses breathing space while they restructure.rn

rnThe government is considering a separate Act to cover business failures, since this would make it possible to cover sole traders and partnerships. rn

rnThe bankruptcy Act will give troubled businesses a moratorium on de

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