The Hon. (Dr.) Anil Jayantha – Minister of Labour and Deputy Minister of Finance and Planning

¶ 01 Hon. Presiding Member, this is a comprehensive and vital Bill on Rescues, Rehabilitation and Insolvency (Institutional and Individual). Before turning to the text, I must address misinformation regarding the alleged USD 2.5 million payments in Treasury debt service. We clearly stated that upon learning of issues, inquiries commenced with relevant units. Nevertheless, false claims spread—about transfers, reprisals, concealment, and money being diverted into various accounts. After a tragic death of an officer, some claimed he was the complainant and implied murder; we categorically stated he was not the complainant. Those advancing such claims should present facts. There were also false statements that the officer’s spouse demanded a postmortem—untrue. Even respected Members cited selective figures online, misrepresenting what I said: I explained that the USD 2.5 million total comprised multiple voucher payments, some small and some large; the quoted “900,000s” referred to vouchers within that overall sum. Social media posts even placed my photo with invented statements. If the Opposition genuinely seeks truth, provide information to investigators rather than sowing doubt with serial falsehoods. As with prior “container” and “coal” allegations, when facts were presented, those narratives faded.

¶ 02 Turning to the Bill: its core is to support individuals and corporates engaged in business who face distress—cash-flow shocks, losses, internal failures or frauds, and exogenous shocks (like oil price spikes from global wars). When obligations exceed assets, distress escalates.

¶ 03 Under current personal bankruptcy, one merely declares inability to pay; there was little early intervention. Our new approach emphasizes pre‑insolvency signaling and structured intervention to avert collapse, and only if necessary, to manage insolvency efficiently.

¶ 04 We inherited a bankrupt economy stabilized by import clamps; we are instead expanding the economy by reconnecting actors to economic activity. This Bill aligns with that vision: rather than letting businesses collapse and only then seeking answers, it creates the legal environment for return to activity.

¶ 05 Key elements: - Integrates individual and corporate regimes; not only liquidation, but rescue and rehabilitation. - Aligns with international best practices (UK, USA) to enhance investor confidence. - Addresses “bankruptcy cost”—distressed assets sell below market due to stigma. The Bill provides mechanisms to realize closer to fair market value through professional management and orderly processes. - Prioritizes pre‑insolvency rescue: structured, collective processes involving all stakeholders under clear rules, with a central regulator. - If liquidation is unavoidable, the debtor is not exiled from society; after fair realization, they can re-enter economic life. - Establishes an Insolvency Regulatory Authority as the central regulator: licensing and supervising practitioners; issuing guidelines; appointing receivers; overseeing valuation, sales, and custody to prevent dissipation. - Introduces a structured moratorium: creditors cannot immediately seize collateral once a process is invoked; temporary protection allows debt restructuring. - Multi‑layered administration: assessing cash-flow restoration, guiding restructuring, rescheduling, and monitoring—building confidence and improving the ease of doing business. - Tackles willful default and fraud with deterrent measures, while aiding bona fide enterprises.

¶ 06 Improving the business climate correlates with 10–20% increases in FDI. BOI reforms, investment zones, and macro-stability together with this Bill will strengthen our pathway to sustainable growth.

¶ 07 I support the Bill.