Rescue, Rehabilitation and Insolvency (Corporate and Personal) Act 2026 · As enacted · Part XI · Micro Small Medium Enterprise (MSME) Company Debt Restructuring Arrangements
281. MSME Company Debt Restructuring Arrangements: Appointment of personal insolvency proposer
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
Where a MSME debtor wishes to make a proposal for a MSME Company Debt Restructuring Arrangement, it must appoint a person, firm or body, to act as a personal insolvency proposer, in terms of section 293.
If the MSME debtor and the personal insolvency proposer so agree, the person, firm or body appointed to act as a personal insolvency proposer may also act as a personal insolvency administrator in respect of the proposed MSME
Company Debt Restructuring Arrangement.
On being appointed under subsection (1), the personal insolvency proposer shall -
confirm in writing to the MSME debtor that the personal insolvency proposer has consented to act in the role of personal insolvency proposer in respect of the MSME debtor’s MSME Company
Debt Restructuring Arrangement proposal;
if the proposer consents to act as personal insolvency administrator on the coming into effect of the MSME Company Debt Restructuring
Arrangement, confirm this consent in writing to the MSME debtor; and
notify the Official Receiver of its appointment to act as a personal insolvency proposer, and, where relevant, a personal insolvency administrator.
A personal insolvency proposer who agrees to assist a MSME debtor in preparing a MSME Company Debt
Restructuring Arrangement shall -
make such reasonable enquiries into the MSME debtor’s property and financial affairs so as to
Rescue, Rehabilitation and Insolvency be able to assess with reasonable accuracy the
MSME debtor’s financial situation; and
prepare a MSME Company Debt Restructuring
Arrangement in the manner specified by this Part, and in the form which may be prescribed.
For the purpose of enabling the personal insolvency proposer to assist in the preparation of a proposal for a MSME
Company Debt Restructuring Arrangement, the MSME debtor shall submit to the personal insolvency proposer a statement disclosing fully, to the best of the knowledge of the MSME’s directors, all of the MSME debtor’s financial affairs, in accordance with section 33.
The rules, standards, practice directions, codes of conduct or guidelines may be made by the Authority regarding the functions of personal insolvency proposers in assisting a MSME debtor in the preparation and submission of a proposal for a MSME Company Debt Rehabilitation
Order.
Part XII
Part XIII
Part XIV