The interim budget presented to parliament yesterday proposed to introduce bankruptcy laws to Sri Lanka similar to those in the United States.

“Chapter 11 of the Bankruptcy Code of the United States contains provisions on how to reorganise businesses in distress due to indebtedness. Bankruptcy alone is not a reason to close the business and there are ways to reorganise the business by restructuring the assets and liabilities and by getting rid of the indebtedness while staying alive in the business,” said President Ranil Wickremesinghe delivering the budget speech. He said new laws under similar lines should be enacted in Sri Lanka.