Regulatory Alerts2019-05-31 | Regulations No. 01 of 2019Finance Business (Priority of Claims in a Winding Up of Finance Company) Regulations No. 01 of 2019
The Minister of Finance of Sri Lanka issued these regulations under the Finance Business Act to establish a specific hierarchy for preferential claims during the winding up of a finance company. The rules mandate that liquidators pay expenses, deposit insurance premiums, employee dues, and taxes in a strict order, explicitly excluding the general preferential claims of the Companies Act. The schedule further disqualifies claims from directors or officers found guilty of fraud and excludes related party deposits from the priority list.
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