Sri Lanka is to modernise its bankruptcy law to meet present day needs and improve conditions to do business in the island, a spokesman said.
Media Minister Gayantha Karunathilake said provisions of the Insolvency Ordinance No 24 of 1884 are not sufficient in dealing with issues related to enterprises that face difficulties.
The urgent need to reform public enterprises has also given rise to calls for new laws related to bankruptcy, he told a news conference.
“If suitable and productive laws are implemented to take action in bankruptcy situations, Sri Lanka would gain a higher rank in the ease of doing business Index,” he said.
The cabinet of ministers has approved a proposal by Prime Minister Ranil Wickremesinghe to amend the Companies Act No 7 of 2007 to introduce new laws in institutional bankruptcy that suit present day needs. (Economy Next)