Rescue, Rehabilitation and Insolvency (Corporate and Personal) Act 2026 · As enacted · Part I
27. Prohibition order
Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.
Official translationFrom Department of Government Printing, unchanged
On the application of the Authority, the court shall make in relation to a person, a prohibition order for a period not exceeding five years, where the court is satisfied that a person meets the condition in subsection (2).
The condition referred to in subsection (1) is that the person is unfit to be appointed or act as a key office holder by reason of –
persistent failures to comply; or
the seriousness of one or more failures to comply, with one or more of the duties referred to in section 264, section 363 and section 405.
A person to whom a prohibition order applies shall not be appointed or act as a key office holder.
In making a prohibition order, the court may, as may be necessary –
impose any term or condition; and
make any other ancillary order.
A copy of every prohibition order shall, within five working days after the making of the order, be sent by the court to the Authority.
Rescue, Rehabilitation and Insolvency
Where, on two or more occasions within the five years immediately preceding –
a court has made an order in respect of a person, under paragraph (a) of subsection (2) of section 264, paragraph (a) of subsection (2) of section 363 or paragraph (a) of subsection (2) of section 405 to comply with a duty; or
an application for an order to comply with a duty has been made in respect of a person under any of those sections referred to in paragraph (a), and in each case the person has complied with the applicable duty after the making of the application and before the hearing, in the absence of special reasons to the contrary, is deemed to be evidence of persistent failures to comply by such person for the purposes of subsection (2)(a).
Any person who fails to comply with a prohibition order commits an offence.
Part II
Personal Insolvency: Principles
Part III
Debt Protection Moratorium Order
Part IV
Debt Restructuring Arrangements
Part V
Debt Rehabilitation Orders
Part VI
Part VII
Personal Insolvency Register
Part VIII
Part IX
Part X
Compromises
Part XI
Micro Small Medium Enterprise (MSME) Company Debt Restructuring Arrangements
Part XII
Part XIII
Part XIV