The Hon. Priyantha Wijerathna, Attorney-at-Law

¶ 01 Madam Presiding Member, law must be continuously updated. Today we modernize insolvency by replacing the 1853 Insolvency Ordinance and aligning with the Companies Act, 2007. The previous governments failed to update a 170-year-old law; even today, some in the Opposition conflate insolvency with unrelated issues like the Central Bank’s USD 25 million matter. Insolvency means liabilities exceeding assets. Old laws focused on winding up and distribution after failure.

¶ 02 Society now needs: (1) rescue and reorganization of viable enterprises in difficulty, (2) orderly closure of non-viable businesses, (3) better early-warning and pre-insolvency measures, (4) reduction of unnecessary losses, (5) regulation, supervision and discipline of insolvency practitioners, (6) more efficient creditor recoveries, (7) relief for honest overburdened debtors to rebuild, (8) reduced social costs, and (9) entrepreneurship promotion by giving second chances rather than crushing individuals and firms.

¶ 03 This Bill provides: - Stability for investors and a framework to rehabilitate businesses rather than end them. - A pathway distinguishing viable rescues from non-viable liquidations, effectively a second chance. - Use of remaining assets pre-insolvency to restructure debts. - A moratorium: upon filing a reorganization plan, an initial 60-day stay (extendable by agreement) to halt enforcement and allow breathing space.

¶ 04 After 170 years, investors gain confidence that shocks—like cyclones or tsunamis—won’t permanently end viable enterprises. The National People’s Power Government was elected to perform the Executive’s duties and legislate for current needs; we are doing so. The Opposition dwells on minor incidents, but today’s modernization strengthens business and investment in Sri Lanka. I support the Bill.