COVID-19 Special Provisions Bill passed in P’ment

By Yohan Perera and Ajith Siriwardana
The COVID-19 Special Provisions Bill, which provides redress to those who borrow funds from banks and investors, was unanimously approved by Parliament with few amendments, this week.

This bill provides relief to persons who had signed a contract for a loan with a bank or a finance company licensed under Finance Business Act No 42, if they are unable to honour the contract, due to the ongoing pandemic. 

It also provides relief to hire purchase agreements for plant, machinery and commercial vehicle, lease agreement for machinery or commercial vehicle, event contracts, tourism-related contracts, purchase of a house from a housing developer and to an agreement for a purchase and sale of a commercial property. 

Relief is provided if the parties that have agreed to the contract cannot honour it because of the ongoing pandemic situation. 

It also provides relief to overseas investors, who are unable arrive in Sri Lanka to honour the investment contracts they had agreed with Sri Lankan partners.