Rescue, Rehabilitation and Insolvency (Corporate and Personal) Act 2026 · As enacted · Part XI · Micro Small Medium Enterprise (MSME) Company Debt Restructuring Arrangements
280. MSME Company Debt Restructuring Arrangements: Secured Creditors and Property Rights
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
Without limiting the ability of the parties to agree on the terms of a MSME Company Debt Restructuring
Arrangement other than under the provisions of this Part, an
Arrangement may include terms providing for the payment, satisfaction or restructuring of both unsecured and secured debts and the rights of counterparties to hire-purchase agreements.
Subject to the rules on creditors’ approval of a MSME debtor’s proposal under section 284, a MSME Company Debt
Restructuring Arrangement may include terms providing for the treatment of any property that is subject to a security or of a hire-purchase agreement, which may include-
the sale or disposition of the property;
the surrender of the property to the MSME debtor; or
the retention by the secured creditor or hire-purchase agreement counterparty of the property.
Subject to the rules on creditors’ approval of a MSME debtor’s proposal under section 284, an MSME Company
Debt Restructuring Arrangement may include terms -
Rescue, Rehabilitation and Insolvency
modifying the rights of a secured creditor or hire-purchase agreement counterparty; or
providing that a secured creditor or hire-purchase agreement counterparty will not seize or realise its security or property while the arrangement is in force.
Subject to the rules on creditors’ approval of a
MSME debtor’s proposal under section 284, an MSME
Company Debt Restructuring Arrangement may include terms providing for the reduction of the principal sum due in respect of a secured debt or hire-purchase agreement, only where the Arrangement specifies that the amount of the reduced principal sum is not less than the value of the security.
Subject to the rules on creditors’ approval of a MSME debtor’s proposal under section 284, an MSME Company
Debt Restructuring Arrangement may include terms providing for -
the curing, within a reasonable time, of any default; and
maintenance of payments while the Arrangement is in effect on any secured debt on which the last payment is due after the completion of the
Arrangement.
Subject to the rules on creditors’ approval of a MSME debtor’s proposal under section 284, an MSME Company
Debt Restructuring Arrangement may include terms providing for the -
the curing, within a reasonable time, of any default; and
maintenance of rent payments while the
Arrangement is in effect arising under a rental
Rescue, Rehabilitation and Insolvency agreement into which the MSME debtor has entered with a relevant creditor.
Part XII
Part XIII
Part XIV