Constructive Trusts in Sri Lanka: A Model for an Expansive Approach

Abstract

The formal source of trusts law in Sri Lanka is found in the 1917 Trusts Ordinance. This Ordinance was based on English law, being introduced during the British rule of (what was formerly) Ceylon. In the century since its introduction, the law has certainly not stood still, and the cases and understanding of trusts laws both in England and in Sri Lanka have developed throughout that time. This paper makes two main points. The first is that the modern Sri Lankan legal landscape takes a circumscribed approach towards constructive trusts, as compared to English law. The second is that there is nothing in the Trusts Ordinance which prevents Sri Lankan judges from taking an expansive approach — that an argument may be found for Sri Lankan courts to take into account and apply developments in English law, should they wish to do so. The focus of this paper is on the latter point: it describes what a model for an expansive approach might look like, and notes a number of implications of such an approach.

Keywords: Constructive trusts, Sri Lanka, English law, Comparative Law

JEL Classification: K10, K19