A proposal by Prime Minister Ranil Wickremesinghe to instruct the Legal Draftsman to draft amendments to Companies Act No. 7 of 2007 to introduce a Liquidation Act in keeping with the current needs gained Cabinet approval.
The proposal further suggests that clauses in the existing Liquidation Provisions Ordinance No. 04 of 1884 regarding business organizations faced with issues are woefully inadequate to resolve issues within modern business organizations.
Similarly, it has been pointed out that a new series of liquidation related laws towards are needed towards reforms in state owned institutions as well.
The government’s view is that Sri Lanka could climb up in the Ease of Doing Business Index if the proposed effective laws are introduced.
