Rescue, Rehabilitation and Insolvency (Corporate and Personal) Act 2026 · As enacted · Part V · Debt Rehabilitation Orders
71. Eff ect of Debt Rehabilitation 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
While a Debt Rehabilitation Order is in effect in respect of a debtor, a creditor of the debtor to whom an included debt is owed-
has no remedy in respect of the debt;
shall not take any actions to recover or enforce the debt; and
in particular, shall not take any actions to —
contact a debtor regarding payment of an included debt, otherwise than at the request of the debtor or the debtor’s representative;
initiate or continue any legal proceedings against the debtor in relation to an included debt;
collect, secure, recover or demand payment of an included debt;
execute or enforce a judgment or an order of a court or tribunal against the debtor;
obtain a warrant;
unless the requirements of subsection (2)
are met, obtain possession of a premises in which the debtor is residing under a tenancy agreement with the creditor;
subject to subsection (4), take possession of, or otherwise recover, any goods of the type specified in paragraphs (a), (b), (c) or (d) of subsection (4) of section 34 that are used by or in the possession of, the debtor, where the creditor is the owner or lessor of the goods;
instruct an agent to take any of the actions mentioned in paragraphs (i), (ii), (iii), (iv), (v), (vi), (vii) or (viii).
Rescue, Rehabilitation and Insolvency
While a Debt Rehabilitation Order is in effect in respect of a debtor, where the debtor has entered into a tenancy agreement, with the relevant creditor, a court may exceptionally give permission for such creditor to obtain possession of a premises in which the debtor is residing under such agreement only if —
the duration of the tenancy contract has expired during the course of the Debt Rehabilitation
Order;
the debtor owes arrears of rent to relevant creditor of an amount of more than three months of rent;
and the court considers that it is more likely than not that the debtor will be unable to maintain ongoing rent payments over the duration of the order; or
an application of a relevant creditor to obtain possession of the premises is based on grounds other than the debtor’s non-payment of rent.
While a Debt Rehabilitation Order is in effect, a court may give permission for a creditor to take a step listed in paragraph (c) of subsection (1), where the court considers that-
exceptional circumstances mean that it is reasonable to allow the creditor to take the step;
and
the step will not —
cause detriment to the debtor to whom the order relates;
unfairly prejudice any other creditor; or
significantly undermine the protections of the order.
Rescue, Rehabilitation and Insolvency
While a Debt Rehabilitation Order is in effect in respect of a debtor, a court may exceptionally give permission for a lessor or owner of goods to terminate an agreement, including a hire-purchase agreement, by means of which a debtor is using or has possession of goods of the type specified in section 34, where —
the debtor owes arrears under such agreement of an amount more than three monthly repayments, and the court considers that it is more likely than not that the debtor will be unable to maintain on going repayments while the Debt Rehabilitation
Order is in force; or
an application of a lessor or owner to terminate such agreement, and to obtain possession of, or otherwise recover, the goods subject to the agreement, is based on grounds other than the debtor’s default in making repayments under the agreement.
While a Debt Rehabilitation Order is in effect in respect of a debtor, a supplier of any essential goods or services shall not –
refuse to supply the goods or services to a debtor, by reason of the debtor’s default in paying charges due for the goods or services in relation to a period before the making of the Order;
make it a condition of the supply of the goods or services to a debtor, that payment be made of outstanding charges due for the goods or services in relation to a period before the making of the
Order; or
rely on an insolvency-related term of the agreement for the supply of the goods or services.
Rescue, Rehabilitation and Insolvency
A Debt Rehabilitation Order shall not prevent the commencement or continuation of any criminal proceedings against a debtor.
Any action taken contrary to this section shall be null and void.
Nothing in this section shall affect the right of a secured creditor to enforce the secured creditor’s security.
Nothing in this section affects a creditor’s entitlement to the benefit of any execution or other legal process or distress against a debtor or property of the debtor where the execution or other legal process or distress was completed at least one hundred and eighty days before the making of the
Debt Rehabilitation Order, where —
an execution against movable or immovable property is completed by seizure, or the entry into possession of a receiver or appointee or a person charged with execution, and a completed sale; and
a settlement of a debt is completed by satisfaction of the debt.
While the Debt Rehabilitation Order is in effect, the debtor shall undertake to adhere to responsibilities under section 32 which may reasonably apply.
Where, under subsection (5), a creditor has continued to supply a debtor with essential goods or services, the
Official Receiver shall provide for payment to be made to the relevant creditor in respect of such continued supply, from the income of the debtor.
Where a person has acquired an interest in property or any other right under a transaction with a creditor which arose from an action taken by a creditor or creditor’s agent
Rescue, Rehabilitation and Insolvency which was contrary to this section, the nullity of that action shall not prejudice the rights of that person, where that person dealt with the creditor in good faith and for value.
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