The Rescue, Rehabilitation and Insolvency (Corporate and Personal) Bill has officially become law, with Speaker of Parliament Jagath Wickramaratne today (17) endorsing the certificate on the legislation.
The Bill was first read in Parliament on 17 March 2026 and was subsequently passed by Parliament following a debate held on 6 May 2026.
The Act provides for the amendment of the Rescue, Rehabilitation and Insolvency (Corporate and Personal) Act, the Companies Act, No. 7 of 2007, the Inland Revenue Act, No. 24 of 2017, and the Mediation Boards Act, No. 72 of 1988, while repealing the Insolvency Ordinance (Chapter 97).
The Act introduces specific procedures relating to personal insolvency, including provisions for debt protection, moratoria, and debt restructuring, while ensuring the protection of a debtor’s reasonable income and essential assets.
In addition, the legislation addresses matters relating to corporate governance, receivership, and cross-border insolvency, with a view to enhancing predictability and confidence in the credit market.
The Act is also intended to provide a fresh start for honest individual debtors and establish a structured mechanism for the rehabilitation of distressed but fundamentally viable companies.
Accordingly, the Rescue, Rehabilitation and Insolvency (Corporate and Personal) Bill shall come into force as the Rescue, Rehabilitation and Insolvency (Corporate and Personal) Act, No. 12 of 2026. (Newswire)
