The recently enacted Inland Trust Receipts (Amendment) Act, No. 22 of 2024, brings forth pivotal changes to the legal landscape governing trust receipts in Sri Lanka. Here’s a breakdown of the key amendments:
- Title and Commencement: The Act, bearing the title Inland Trust Receipts (Amendment) Act, No. 22 of 2024, will come into operation on a date specified by the Minister, known as the “appointed date,” with the exception of Section 1, which takes effect upon the Bill’s enactment.
- Amendment of Section 3: Section 3 of the Inland Trust Receipts Act, No. 14 of 1990, undergoes modification, replacing the requirement of registration under the outdated Registration of Documents Ordinance with registration under the contemporary Secured Transactions Act, No. 17 of 2024, as a bill of sale.
- Provisions Relating to Inland Trust Receipts: Trust receipts registered under the Registration of Documents Ordinance before the appointed date will remain enforceable for a transitional period of two years. During this time frame, these trust receipts must be duly registered under the Secured Transactions Act to maintain their enforceability status. Failure to comply within the stipulated period will render such trust receipts legally unenforceable.
The enactment of the Inland Trust Receipts (Amendment) Act, No. 22 of 2024, underscores Sri Lanka’s commitment to enhancing security and transparency within commercial transactions. By modernizing registration requirements and providing a transitional period for compliance, the Act aims to bolster confidence in business dealings, paving the way for smoother and more secure transactions in the country.
New Amendment
English Version – http://documents.gov.lk/files/act/2024/4/22-2024_E.pdf
Sinhala Version – http://documents.gov.lk/files/act/2024/4/22-2024_S.pdf
