Rescue, Rehabilitation and Insolvency (Corporate and Personal) Act 2026 · As enacted · Part XI · Micro Small Medium Enterprise (MSME) Company Debt Restructuring Arrangements
290. Termination of MSME Company Debt Restructuring Arrangement
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
The MSME debtor, acting with the personal insolvency administrator and creditors may at any time terminate a MSME Company Debt Restructuring
Arrangement through the acceptance by a majority of two thirds in value of creditors of a proposal by the MSME debtor to terminate the Arrangement.
Any of the following persons may apply to the court for an order terminating a MSME Company Debt Restructuring
Arrangement :-
the MSME debtor;
a creditor;
the personal insolvency administrator; or
the Official Receiver.
An application by a MSME debtor or creditor for an order terminating a MSME Company Debt Restructuring
Arrangement may include an application for a bankruptcy order against the MSME debtor.
An application under subsection (2) shall be based on one of the following grounds:-
a material false representation or omission has been found in the statement of the MSME debtor’s financial affairs, which causes a material detriment to a creditor;
the making and confirmation of the MSME
Company Debt Restructuring Arrangement has not complied with the procedural requirements of this Part;
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the company, at the time of the submission of a proposal to the Official Receiver under section 282 was not a MSME debtor;
the MSME debtor, at the time of the submission of a proposal to the Official Receiver under section 282, did not satisfy the eligibility criteria under section 278;
the MSME debtor did not comply with the obligations imposed on it under the MSME
Company Debt Restructuring Arrangement;
the MSME debtor is in arrears in respect of the payments under the MSME Company
Debt Restructuring Arrangement of an amount corresponding to a period of not less than three months;
the MSME debtor has failed to carry out any action reasonably necessary to put the MSME
Company Debt Restructuring Arrangement into effect; or
the MSME debtor has unreasonably refused to consent to a variation of the MSME Company
Debt Restructuring Arrangement.
On hearing an application under subsection (2), the court may-
dismiss the application;
terminate the
MSME
Company
Debt
Restructuring Arrangement; or
order the personal insolvency administrator to prepare a proposal for a variation of the MSME
Company Debt Restructuring Arrangement under section 289.
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Where a court has made an order under subsection (5), the court may require the MSME debtor to pay any interest, fees or charges that accrued in respect of an included debt during the period in which the MSME Company Debt
Restructuring Arrangement was in effect.
In any case where a court makes an order under subsections (5) or (6), the court shall give written notice to the MSME debtor and the personal insolvency administrator, the Official Receiver and any creditors to whom the order under subsection (5) applies.
Where a court notifies the Official Receiver under subsection (7), the Official Receiver shall, within a period of fourteen days after the date of the notification and in such manner as may be prescribed-
give public notice of the court order; and
send a copy of such notice to the Registrar and the Authority.
Part XII
Part XIII
Part XIV