ECONOMYNEXT – Sri Lanka will repeal its Foreign Loans Act No. 29 of 1957 and all the amendments to it, and also amend its Companies Act No. 07 of 2007, Minister Nalinda Jayatissa said.
“Since the procedures that should be followed in obtaining and managing foreign debt are covered by the Public Debt Management Act No. 33 of 2024, the Foreign Loans Act No. 29 of 1957 and all the amendments to it should be cancelled,” Jayatissa told reporters announcing the week’s cabinet decisions.
The clearance of the Attorney General has been received for the Foreign Loans (Abolishment) Draft prepared by the legal draftsman, he said.
The draft will be published in the Government Gazette and then presented to parliament for approval.
The cabinet has also approved amending the Companies Act No. 07 of 2007, Jayatissa said.
“The cabinet approved amending the Companies Act No. 07 of 2007 to remedy shortcomings according to international standards for prevention of money laundering, financing terrorism and other illegal activities.”
The draft bill prepared by the legal draftsman has been revised as per instructions provided by the Attorney General subject to the special decision of the Supreme Court No. SC/SD/92/2024, the minister said.
Clearance of the attorney general has been granted for the final draft bill prepared by the legal draftsman.
The draft bill will be published in the government gazette and subsequently submitted to parliament.(Colombo/Mar26/2025)
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