Speaker Signs Off on Insolvency, Rehabilitation and Debt Relief Bill
Colombo, June 17 – Speaker of Parliament Jagath Wickramaratne today (17) certified the Rehabilitation, Insolvency and Debt Relief (Incorporated and Individual Persons) Bill by affixing his signature.
The Bill was first presented to Parliament for its second reading on March 17, 2026, and was subsequently debated and passed on May 6, 2026.
With this certification, the new law brings significant amendments to several existing legislations, including:
- Companies Act No. 07 of 2007
- Inland Revenue Act No. 24 of 2017
- Mediation Boards Act No. 72 of 1988
It also repeals the Insolvency Ordinance (Chapter 97), replacing the previous legal framework governing insolvency procedures.
According to the provisions of the new law, the framework aims to protect a debtor’s reasonable income and essential assets while introducing structured mechanisms for debt restructuring and relief. It also includes provisions for temporary relief measures and formal rehabilitation procedures for individuals facing financial distress.
Officials state that the legislation is expected to strengthen Sri Lanka’s financial and legal framework by providing a more systematic approach to managing insolvency cases, while offering relief to individuals and businesses affected by debt burdens.
