Sri Lanka, Feb. 24 -- Sri Lanka has long recognised the need to modernise its insolvency framework, yet meaningful reform has remained in the pipeline for years. The proposed Rescue, Rehabilitation and Insolvency (Corporate and Personal) Law now represents a significant step forward. It is not merely another statute, but a structural recalibration of how the country approaches financial distress.

At a time when businesses, financial institutions and individuals continue to navigate the aftereffects of economic turbulence, this legislation signals an effort to move from a system focused primarily on enforcement and liquidation towards one that seeks rehabilitation, continuity and long-term economic stability.

Sri Lanka's commercial legal...