Most software developers in Sri Lanka export their programs and are more vulnerable to foreign legislation. Revive the sick, don't kill' By Chanakya Dissanayake A leading chamber is urging the government to adopt US Chapter 11 style reforms to our Bankruptcy Law. A majority of them being in the small and medium scale sector. Parate executions have adverse effects not only on the economy but on the social environment as well. When a business is experiencing financial difficulties, we should first attempt to revive the business by restructuring it's operations.
Parate execution is similar to killing the sick patient.
Chapter 11 of the US Bankruptcy Law provides a mechanism to restructure firms in financial difficulties. The management of the particular firm is assisted by an array of advisory services that include, management consultation, marketing strategy restructuring and additional funding. There are also provisions to form a committee comprising of the firm's creditors and equity stake holders to assist the firm's reorganisation plans. It can also prevent the hammer falling down on many traditional businesses that are involved in light engineering and handicraft industry. During the past few years the failure rate among traditional businesses has been high.