The Debt Conciliation Board: help with loans secured on property
What the Board does, who it is for and how to apply, read from the Ministry of Justice’s page for the Department.
Read from the official page on 14 October 2026
In short
- It helps borrowers whose immovable property (land, paddy fields, estates, houses) is tied to a loan by mortgage or by a conditional transfer deed.
- No fee is charged for applications, proceedings are free of stamp duty and you do not need a lawyer. Small Gazette and notice fees apply.
- A settlement is agreed voluntarily. If it is not, the Board can issue the debtor a certificate, and a court can then allow up to 10 years to pay and cut the interest.
- Office: No. 46, 48, Dr N.M. Perera Mawatha, Borella, Colombo 08. Phone +94 112 697 910 / 911.
What the Board is for
The Department of Debt Conciliation Board was set up under the Debt Conciliation Ordinance No. 39 of 1941. Its aim is to give borrowers relief when loans taken against immovable property become unaffordable, so that they can keep or recover property such as agricultural land or a house, by paying in instalments at a low rate of interest.
Which loans it covers
- Loans secured by a mortgage bond over immovable property.
- Loans secured by a deed of conditional transfer.
- Since the 1999 amendment, a transfer deed executed solely for a loan transaction.
- Unsecured loans on documents such as promissory notes and cheques, alongside such secured loans.
It is not a general debt-relief service for credit cards, online loan apps or other loans with no link to property. Check with the Department whether your loan qualifies.
How it works
The Board has five members, one of them the Chairman. It brings the lender and borrower together to reach a settlement on repayment. The settlement is not imposed: the parties agree to it voluntarily before the Board. But the Board can reduce unreasonable rates of interest, and if a party will not accept its suggestions it can issue a certificate to the debtor. If the creditor does not appear after notice by registered post and the Grama Niladhari, the Board holds an ex parte hearing and can still issue the certificate.
What the certificate does
If a debtor produces the certificate in a court where the same matter is being tried, the court may allow a period of up to 10 years to settle the loan, reduce the interest to the minimum rate and not recover costs from the debtor.
How to apply
Download the Application for Relief Under the Debt Conciliation Ordinance and the instructions to complete it from the Ministry of Justice page, or collect them from the Department at No. 46, 48, Dr N.M. Perera Mawatha, Borella, Colombo 08 (+94 112 697 910 / 911). The Ordinance sets who can apply and the time limits, so ask the Department before you file.
A note
This page is general information, not legal advice. For your own case, speak to a lawyer or the office named above.
Frequently asked questions
Does the Debt Conciliation Board charge a fee?
No fee is charged for applications and proceedings are free of stamp duty. Only a very small amount is charged for Gazette and notice fees. You do not have to be represented by a lawyer.
Can the Board stop me losing my land or house?
It aims to help borrowers get back or keep immovable property by repaying in instalments at a low interest rate. A certificate it issues can be produced in court, which may then allow up to 10 years to settle and reduce the interest.
Can I use the Board for a loan app or credit card debt?
The Board’s remit is loans involving immovable property. It is not a general debt service for unsecured loans with no link to property.
Do lenders have to attend?
They are summoned by registered post and through the Grama Niladhari. If a creditor deliberately does not attend, the Board can hold an ex parte hearing and issue a certificate to the debtor.