The Hon. Arun Hemachandra - Deputy Minister of Foreign Affairs and Foreign Employment

¶ 01 Hon. Deputy Chairperson of Committees, before turning to the main debate, I wish to clarify some points raised by Hon. Mano Ganesan. In his remarks on the Neelagama incident, he spoke in a way that suggested the Government supported the attack. The public understands what truly happened and how the National People’s Power Government approaches such matters. The Opposition should stop spreading misinformation. Let me also remind them who lit the fires in 1983.

¶ 02 As to the Bill before us, we are discussing vital economic reforms through a new law: the Rescue, Rehabilitation and Insolvency (Corporate and Personal) Bill. Around the world, laws evolve with economic needs; in recent decades, Sri Lanka lagged. With our people’s mandate, we are introducing globally aligned, growth-supporting reforms.

¶ 03 This Bill especially aids MSMEs. It draws on and updates provisions of the 1853 Insolvency Ordinance and the 2007 Companies Act. Businesses can fail due to internal crises or international shocks. Our policy choice is not to punish well-run enterprises struck by external disruptions, but to give structured space for recovery.

¶ 04 Consider supply chain disruptions that impede production. This Bill’s core intent is to avert unnecessary bankruptcies and allow viable firms to regain footing. Many countries have such frameworks—e.g., the U.S. Bankruptcy Code Chapter 11; India’s 2016 Insolvency and Bankruptcy Code; similar regimes in Singapore and the UK. These systems have enabled turnarounds—from Delta and United Airlines to General Motors and Marvel Entertainment, which reemerged after court-guided reorganization.

¶ 05 Sri Lanka has faced war, the pandemic, a domestic debt crisis, and regional instability. We cannot penalize enterprises that were responsibly managed but hit by shocks. We must enable restructuring and continuity to protect jobs and economic capacity. Non-performing loans surged in recent years; we should prevent fire sales and preserve asset value while giving firms a path back, rather than forcing closures like we saw post-Easter 2019, during Covid, and amid the recent crisis when many small apparel and other units shut. Since we assumed office, we have worked to prevent repeats and will continue with forward-looking reforms. I urge all Members to support this Bill.