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Sri Lanka to reform Bankruptcy laws

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May 11, 2016 (LBO) – Sri Lanka’s cabinet has decided to approve amending the Companies Act No. 7 of 2007 for introduction of new laws in institutional bankruptcy that suit present day needs. “It has been witnessed that provisions of the Insolvency Ordinance No 24 of 1884 are not sufficient in dealing with issues related to enterprises that have faced difficulties,” a statement on approved cabinet decisions said.
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“Moreover, the need of new laws related to bankruptcy has aired for reform of public enterprises.” If suitable and productive laws are being implemented to take action in bankruptcy situations, Sri Lanka would gain a higher rank in the Ease of Doing Business Index, it added.
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