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Defamation Law in Sri Lanka

Defamation occurs when false or damaging statements are made about an individual or organization, harming their reputation. In Sri Lanka, defamation can lead to both *civil and criminal liability*. Civil defamation allows the victim to claim monetary compensation for damages caused, while criminal defamation involves penalties such as fines or imprisonment. With the rise of social media and online platforms, defamation cases are becoming increasingly common, making it essential to understand the boundaries of lawful speech.

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Sri Lankan Labour Law

Labour law in Sri Lanka sets the rules for employment relationships, protecting both employees and employers. It covers contracts, working hours, wages, leave, termination, and workplace safety. Employers must understand these laws to run their business legally and efficiently. Ignorance of labour law can lead to fines, legal disputes, or reputational damage. For example, some small businesses face penalties for failing to provide proper contracts or for exceeding permitted working hours. Being informed helps employers create fair workplaces while minimizing risk.

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Private Limited vs Public Limited Companies

When setting up a business in Sri Lanka, one of the most important decisions you will make is choosing the right type of company. The two most common forms for incorporated businesses are *Private Limited Companies* and *Public Limited Companies*. Each has its own advantages, legal requirements, and best use cases. Understanding the differences can save you time, money, and legal headaches in the future.

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Foreign Investment Laws in Sri Lanka

Sri Lanka has long been seen as a gateway to South Asia, with its strategic location, growing infrastructure, and a government eager to attract foreign investment. But before investing, it is essential to understand the legal framework that governs how foreign individuals and companies can operate here. At Wijesinghe Chambers, we help investors navigate these rules with clarity and confidence.

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EPF and ETF Explained

The *Employees Provident Fund (EPF)* and *Employees Trust Fund (ETF)* are two key components of the social security and benefits system in Sri Lanka. They provide financial security for employees during retirement, disability, or other life events. EPF is a compulsory retirement savings scheme where both employers and employees contribute a fixed percentage of the employee’s salary, while ETF is an employer-funded fund that supports employee welfare and social security. Understanding these systems is essential for employers to remain compliant and for employees to know their entitlements.

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Legal Guide to Starting a Business in Sri Lanka

Starting a business in Sri Lanka is exciting, but it can also feel complicated if you are new to the process. The legal steps are clear, but they must be followed carefully to avoid problems later on. Below, we walk you through the main stages, with simple explanations to help you understand how the system works.

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Buying Property in Sri Lanka

Verifying ownership is the first and most crucial step in buying property in Sri Lanka. Buyers must check the title deed at the local Land Registry to ensure the seller has the legal right to sell. It is equally important to confirm that the property is free from mortgages, liens, or disputes, including potential inheritance claims. Failure to verify ownership can lead to lengthy legal battles and financial losses. For example, there have been cases where buyers purchased property without checking for co-owners, only to face court disputes months later. Working with a legal professional ensures that the title is clean and the transaction is secure.

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How to Legally Terminate Employment in Sri Lanka

Terminating an employee in Sri Lanka is a legal process governed by the *Shop and Office Employees Act, **Industrial Disputes Act*, and other labour regulations. Employers cannot dismiss employees arbitrarily and must follow legal procedures to avoid claims of wrongful termination. Understanding the law is essential to protect the business and ensure fairness to the employee. Termination can occur due to redundancy, misconduct, poor performance, or mutual agreement, but each reason has specific legal requirements.

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Partition Law in Sri Lanka: How Property is Divided Among Heirs

Partition law in Sri Lanka governs how property is divided among heirs when multiple individuals have a legal claim. This law ensures fairness and protects the rights of each co-owner or family member. Partition may apply to land, houses, or other inherited assets. Understanding the legal framework is essential to avoid disputes, especially in cases involving multiple generations or complex family structures.

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Mediation vs Litigation: Which Is Right for Your Case?

Disputes are part of life, whether they involve businesses, families, or individuals. In Sri Lanka, the law provides multiple ways to resolve conflicts, the most common being *mediation and litigation*. Mediation is a process where a neutral third party helps disputing parties reach a voluntary agreement, while litigation involves taking the matter to court for a binding judgment. Choosing the right path depends on the nature of the dispute, the parties involved, and the desired outcome.

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The Importance of a Lease Agreement

A lease agreement is the foundation of a rental relationship between landlords and tenants. In Sri Lanka, having a properly drafted lease is crucial to avoid disputes over rent, property use, and responsibilities. Whether you are renting a residential apartment, commercial office, or retail space, the lease outlines the rights and obligations of both parties and ensures that each side understands their legal position. Without a written lease, misunderstandings and conflicts can escalate into legal disputes that are difficult and costly to resolve.

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Maternity Leave, Sick Leave and Annual Leave

Leave entitlements are an essential part of employment law in Sri Lanka, ensuring employees can balance work and personal needs while maintaining health and family responsibilities. The law provides for *maternity leave, sick leave, and annual leave*, with specific rules on duration, eligibility, and compensation. Employers must understand these provisions to avoid legal violations and foster a fair workplace environment.

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Adoption Laws in Sri Lanka

Adoption in Sri Lanka is governed by the *Orphan’s and Foundlings Ordinance* and related child protection laws. Adoption allows individuals or couples to legally assume parental responsibilities for a child whose biological parents are unable or unwilling to care for them. The law prioritizes the *best interests of the child*, ensuring that they receive a stable, nurturing environment. Families considering adoption must understand the legal framework, eligibility requirements, and procedural steps to ensure a smooth and lawful process.

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Marriage, Divorce and Maintenance

Marriage in Sri Lanka is governed by a combination of *civil laws and personal laws, depending on the religion, ethnicity, and legal background of the individuals involved. The **Civil Marriage Ordinance* provides the legal framework for civil marriages open to all citizens, while specific communities follow personal laws such as *Kandyan, Muslim, and Roman Catholic laws*, which have unique requirements and procedures. Understanding which law applies is critical to ensure that a marriage is legally recognized. For instance, a Muslim couple must follow the Muslim Marriage and Divorce Act to have their marriage legally valid, whereas a Kandyan marriage has different procedural requirements. Failure to comply with the relevant law can result in legal complications affecting property rights, inheritance, or divorce proceedings in the future.

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Business Law FAQs in Sri Lanka

Starting or running a business in Sri Lanka can raise many questions. At Wijesinghe Chambers, we often hear the same concerns from entrepreneurs and investors. To make things simpler, we have put together the most common questions and clear answers to help you navigate the legal side of business with confidence.

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