Neelakandan & Neelakandan

14/09/2026

Signing as a guarantor can expose your own assets if the borrower defaults.

In DFCC Bank PLC v. Vithanage Happawana, the Supreme Court confirmed that where a guarantee allows the lender to proceed directly against the guarantor, the lender need not first pursue the borrower.

Our latest article looks at what the decision means for guarantors, borrowers and lenders, and why guarantee clauses should be read carefully before signing.

Read the full article: https://neelakandan.lk/insights/signing-as-a-guarantor-is-not-just-a-formality-think-twice-and-check-thrice

22/08/2026

Sri Lanka's position on the main east-west shipping lanes makes it one of the few jurisdictions where a foreign claimant can arrest a vessel that has no other connection to the country, often before her owner even knows a claim has been filed.

This matters most for shipowners, charterers, P&I clubs, cargo interests and financiers with exposure to Sri Lankan port calls, where the rules on arrest, security and release differ from what many foreign parties expect.

Our latest guide, written by Pranavan Neelakandan examines:

* The grounds on which a ship can be arrested under the Admiralty Jurisdiction Act
* How sister-ship arrest works, and why the choice of target can only be made once
* Why a P&I Club letter of undertaking is not accepted as security in Sri Lanka
* The unsettled areas of the law, including security-only arrests and reform pressure since the X-Press Pearl casualty

Understanding these rules before a vessel calls, not after, is what makes arrest a workable remedy rather than a missed opportunity.

Read the full guide here: https://neelakandan.lk/insights/arresting-a-ship-in-sri-lanka-a-practical-guide-for-foreign-claimants

13/07/2026

Sri Lanka's latest import and export regulations introduce significant new compliance obligations for businesses engaged in international trade.

While these changes apply across the board, they may present particular challenges for micro, small and medium-sized enterprises (MSMEs), many of which will now be subject to new administrative and reporting requirements.

Our latest article examines:

* The new rules on the repatriation of export proceeds
* New requirements for import remittances and Customs registration
* How these changes affect exporters, indirect exporters and importers
* Practical steps businesses should take to remain compliant

Understanding these changes early can help businesses reduce compliance risks and strengthen their readiness for an increasingly regulated trade environment.

Read the full article here: https://neelakandan.lk/insights/navigating-the-new-regulatory-crossroads-what-sri-lankas-new-regulations-mean-for-every-importer-exporter-and-msme-in-the-sector

23/06/2026

Before buying land in Sri Lanka, every company should verify the title, boundaries, access rights, approvals and ownership structure.

A suitable location and an agreed price do not, by themselves, make a property transaction secure. Undisclosed mortgages, unclear boundaries, missing approvals, occupation by third parties or foreign ownership restrictions may delay the transfer or prevent the property from being used as intended.

Our latest article explains the main legal checks companies should complete before purchasing land, buildings or condominium property.

Read the full article here: https://neelakandan.lk/insights/what-every-company-must-verify-before-buying-land-in-sri-lanka

20/06/2026

Sri Lanka’s proposed AML/CFT reforms could significantly expand financial reporting, investigative powers, account-freezing measures, and compliance obligations across a much wider range of sectors.

The three Bills may affect not only banks and financial institutions, but also businesses, professionals, exporters, non-profit organisations, and ordinary customers. They also raise important questions around data access, privacy, proportionality, and whether broader enforcement powers will improve Sri Lanka’s FATF compliance in practice.

Our latest article examines the key changes, the sectors likely to be affected, and the wider legal and operational implications.

Read the full article here: hhttps://neelakandan.lk/insights/sri-lankas-new-amlcft-bills-what-banks-businesses-and-civil-societynon-profit-sector-need-to-know

15/06/2026

A valid will gives a person greater control over how property is managed and distributed after death. In its absence, the estate is divided according to the applicable rules of intestate succession, which may not reflect the person’s wishes.

In Sri Lanka, this can be especially complex because inheritance may be governed by the general law, Kandyan law, Thesawalamai law, or Muslim law. The legal requirements for executing a will are also strict, and errors in form or witnessing can affect its validity.

Our latest article explains:
• who can make a valid will
• the formal requirements that must be followed
• the role and duties of an executor
• how intestate succession operates under different legal systems
• issues that may arise where assets are held in Sri Lanka and abroad

Read the full article here: https://neelakandan.lk/insights/the-importance-of-making-a-will-in-sri-lanka-legal-requirements-succession-rules-and-the-consequences-of-intestacy

09/06/2026

Tax non-compliance is no longer only a matter of penalties, interest, or delayed filings.

With the introduction of section 185A under the Inland Revenue (Amendment) Act No. 11 of 2026, certain tax compliance failures may now expose businesses to criminal proceedings before the Magistrate’s Court if they are not remedied within the statutory notice period.

For companies, directors, senior management, and tax teams, this creates a wider governance issue. Tax registrations, return filings, Inland Revenue notices, and summonses should no longer be treated as routine administrative matters that can be addressed later.

In our latest article, we look at what this amendment changes, why the 30-day notice period matters, and what businesses should review internally to reduce legal and operational risk.

Read the full article here: https://neelakandan.lk/insights/tax-non-compliance-is-no-longer-just-a-financial-risk-for-businesses-it-may-now-carry-criminal-consequences
by Pavithra Navarathne and Gayathri Wijesinghe

With six decades of continuous practice and trust from global brands, banks and family offices, N&N is built to help you make confident legal decisions in and about Sri Lanka.

05/06/2026

World Environment Day is a reminder that environmental responsibility also requires private sector efforts to help global commitments move from intention to implementation.

At N&N, we have been supporting businesses that are working in this space, including those seeking to grow or transition their production and services in green and circular economy and clean renewable energy initiatives.

These initiatives have gained significant momentum when they are backed by strong policy commitments and access to structured mid-to-long term financing.

Today we celebrate those partnerships across the government sector, the private sector and the legal fraternity, as these partnerships help us achieve durable green ROIs and drive value to double bottom lines, which is key to strengthening the business case for sustainability.

30/05/2026

Wishing all a blessed and peaceful Vesak.

Vesak reminds us that compassion, humility, and right action are not just values to reflect on, they are values to live by. May this day bring peace to you and your loved ones.

30/05/2026

As we gather together to celebrate Vesak this year, we are reminded of how compassion is most visible in the quiet acts of service in our communities.

In many communities, the first responders are often not institutions. They are volunteers, neighbors, youth leaders and ordinary citizens who are themselves affected by the crisis. They make sure a helping hand is where it is needed most, whilst facing their own struggles. This takes extraordinary courage. That is why supporting volunteers matters.

In the aftermath of Cyclone Ditwah, we are grateful to be able to support 30 youth in the Uwa Province of Sri Lanka. These youth leaders helped schoolchildren find expression through art, built water pipelines for schools that had none, and continued civic work in communities that were also their own. Many of them are part of the Active Citizen network nurtured by Viluthu, a civil society organisation that has long understood what it means to invest in people before a crisis makes it necessary.

Our late Precedent Partner, Mr. Kandiah Neelakandan, believed that service to community is a responsibility one undertakes with grace and courage. That conviction shaped this firm, and it shapes how we choose to act.

Through this initiative, Neelakandan & Neelakandan has extended support to the families of these youth leaders. We do so not only in recognition of their exemplary action, but to hold the spotlight on something that should never go unseen: the important people who hold a community together, who help it be resilient; who champion collective action and dignity.

We are grateful to Viluthu for the work they continue to do, and to these thirty young people for reminding us what it means to serve.