Sri Lanka restricts revocation of deeds of gift
ECONOMYNEXT – Sri Lanka is to amend the law and restrict revocation of deeds of gift to provide greater security to financial institutions lending money using property as collateral, a government spokesman said.
Health Minister Rajitha Senaratne said problems had arisen over the rights of recipients of a gift after a court ruling that a donor can revoke an irrevocable deed of gift by executing a deed of revocation without filing action and obtaining a decision of court.
“It also affects lending institutions who are now placed in a disadvantaged position as they can lose the security on which the loan was granted, on a unilateral revocation by the donor,” he told a news conference.
The Cabinet of Ministers had approved a proposal by Wijayadasa Rajapaksa, Minister of Justice, to amend the law so that revocation of irrevocable deeds of gifts can be done only on the order of a competent court as recommended by the Law Commission. (Colombo/November 12 2015)