The Hon. (Dr.) S. Sri Bavanandarajah

¶ 01 Hon. Presiding Member, I am proud to speak on this landmark, reformist Bill on Rescue, Rehabilitation and Insolvency, which will be a cornerstone in rebuilding Sri Lanka’s economy. When we assumed office, the country was effectively bankrupt. We must move the nation forward. Our economy has long been debt-driven, and for about 170 years we followed the 1853 law. We now modernize it to suit contemporary needs. Even Opposition Members before me welcomed this Bill, for which I thank them.

¶ 02 A key feature is the Insolvency Regulatory Authority. It will not be nominal, but a people-focused body led by experts in finance, law and business. Another shift is from punishment to rehabilitation: instead of jailing debtors or shutting down companies and throwing employees into poverty, we prioritize restructuring and rescue—particularly for MSMEs and those with liabilities under Rs. 50 million—through flexible restructuring plans.

¶ 03 The Bill serves ordinary people too. It is not only for banks. For small borrowers under Rs. 2 million, it can be a boon. A family’s principal residence, essential household goods, tools of trade, and retirement funds are protected. When a debtor is in distress, creditors are temporarily stayed—60 to 360 days—to allow preparation and restart.

¶ 04 Rescue of companies replaces immediate liquidation where viable, protecting livelihoods of thousands. At the same time, there is a strong stance against fraud: hiding assets or giving false information attracts heavy penalties, including imprisonment.

¶ 05 This Bill removes rusted laws and makes Sri Lanka more investment-friendly, instilling discipline in credit culture while providing humane relief. It will especially help address financial and industrial distress in the North and East. After 30 years of war, those regions still struggle. People have been prey to predatory microfinance with usurious rates, leading tragically to suicides. Non-bank finance institutions face liquidity issues, imperiling retirees’ and farmers’ savings. Before the war, the North was an industrial hub with significant contribution to GDP—Kankesanthurai Cement, Paranthan Chemicals, Aanaiyiravu Salt, Achchuveli Industrial Zone, apparel and seafood processing—but much was lost, partly for want of such legal frameworks.

¶ 06 Laws like this are essential to protect victims and to keep our youth contributing to this country rather than emigrating. I urge all, including the Opposition, to support this Bill for the nation’s progress. Thank you.