FINANCIAL CHRONICLE – A proposed bankruptcy law in Sri Lanka should recognize apartment buyers as equal creditors alongside banks, as they play a significant role in the financial landscape of troubled property developments, according to an experienced financial expert who addressed the Committee on Public Finance in Parliament.
The forthcoming legislation aims to facilitate an organized restructuring of debts, enabling all creditors to work collaboratively and providing struggling businesses with the opportunity to remain operational.
Thilan Wijesinghe, the head of TW Holdings, an investment advisory firm, emphasized that the existing legal framework only acknowledges banks as creditors. He advocated for a more inclusive approach, suggesting that the law should empower various stakeholders, including the Urban Development Authority (UDA), government entities, contractors, and property owners, to participate equally in resolving financial disputes. He noted that without a collaborative effort, these matters should be directed towards liquidation within designated time limits.
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Wijesinghe also highlighted the situation surrounding the creditors of the Krish building, where the current legal provisions have proven insufficient amid ongoing liquidation efforts for the project. He expressed concern over the building’s unsightly presence in Colombo, indicating the need for urgent reform in the bankruptcy process. (Colombo/May 3/2026)
