Sri Lanka to restrict revocation of deeds of gift

Nov 12, 2015 (LBO) – Sri Lanka plans to draft legislations to make provision for revocation of irrevocable deeds of gift to provide greater security for lending institutions who lends money using property as collateral, cabinet spokesman Rajitha Senaratne told reporters on Thursday.

Health Minister Rajitha Senaratne said issues have been raised on the rights of donees as the Court of Appeal upheld a judgment of a District Judge wherein the court had held 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 effects on 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,” Senaratne said.

Accordingly the Cabinet of Ministers had approved a proposal by Wijayadasa Rajapaksa, Minister of Justice, to draft legislations to make provision for revocation of irrevocable deeds of gifts can be done only on the order of a competent court as recommended by the Law Commission.