Rethinking the Compatibility of Sri Lanka’s Trust Law with Modern Needs: Three Essential Recommendations to the Trusts Ordinance

Abstract

The Trust law evolves over time, adapting to contemporary needs. In the pursuit of equitable development, many countries make use of trust concepts. In contrast, Sri Lanka’s Trusts Ordinance No.9 of 1917 remains entrenched in the past, reflecting outdated English legislation. This stagnation persists despite scholarly critiques identifying its shortcomings. This article seeks to address this issue by providing essential recommendations to modernize the Trusts Ordinance. Specifically, it advocates for a paradigm shift in charitable trusts to encompass environmental and animal welfare concerns, calls for a more inclusive approach in constructive trusts that recognizes non-pecuniary contributions, and proposes the integration of trust principles into the commercial landscape to foster economic progress. These recommendations draw inspiration from comparative jurisdictions, specifically the legal frameworks of the UK, Australia, and Canada. By undertaking these proposed reforms, Sri Lanka can better align its trust law with contemporary global standards, promoting equitable development.