Regulatory & Policy News
View all(97)📈 Sri Lanka Jumps 14 Places in Global Corruption Index
Sri Lanka has recorded a significant improvement in the 2025 Corruption Perceptions Index (CPI), signaling a positive shift in public sector integrity and governance. • Overall Performance 2025 Score: 35/100 (Up from 32 in 2024). Global Rank: 107th out of 180 countries (Improved by 14 places from 121st). Status: Remains below the global average score of 43, despite the 3-point increase. • Sectoral Insights The rise reflects improved perceptions among experts and business leaders regarding the integrity of the public sector. Key assessment areas include the effectiveness of prosecution, strength of legal frameworks, and whistleblower protections. Economic stability and governance reforms, particularly in tax exemptions and asset declaration systems, remain critical to maintaining this trajectory. • Global Context Top Performers: Denmark (89), Finland (88), and Singapore (84). Bottom Performers: South Sudan (9) and Somalia (9). Historical Note: Sri Lanka’s 2025 score of 35 is an improvement from its "worst-ever" rank in 2024 but remains below its 10-year high of 40 (recorded in 2012).
Sri Lanka to Mandate SIM Re-Registration for Older Connections 📈
The Cabinet of Ministers has approved new regulations to re-register subscriber information for mobile SIM cards issued before August 2, 2019. This move, proposed by the President as Minister of Digital Economy, aims to bridge data gaps in the ICT/BPM and telecommunications sectors. • Core Mandate: All SIM cards obtained prior to the 2019-08-02 cutoff must undergo re-registration to ensure service providers have complete and accurate subscriber data. • Security & Legal Rationale: The update addresses significant challenges in judicial proceedings and criminal investigations caused by missing or outdated user information. • New Provisions: • Formal registration protocols for subscribers aged 16–17 years. • Streamlined regulations for issuing SIM cards to foreign nationals visiting Sri Lanka. • Regulatory Context: These amendments update the Subscriber SIM Card Registration Regulations No. 01 of 2019, issued under the Telecommunications Act No. 25 of 1991, which previously only applied to newer connections. _Note: Operational timelines for the re-registration process are expected to be announced by the TRCSL and telecommunication providers following the gazetting of these regulations._
⚖️ Supreme Court Sentences Lawyer to 3 Years for Contempt
The Supreme Court of Sri Lanka has sentenced attorney-at-law Priyantha Jayathunga to a 3-year prison term following a conviction for contempt of court. • Sentence & Custody: The three-year custodial sentence is effective from 1 July 2024, accounting for the period the respondent has already spent in remand. • The Incident: The proceedings were initiated after the attorney, while appearing before the Court, accused three sitting Justices of suppressing the truth and acting with malice. He further alleged they had committed offenses under Section 289 of the Penal Code. • Judicial Ruling: A three-judge bench, including Justices Shiran Gooneratne, Achala Wengappuli, and Priyantha Fernando, ruled that the elements of contempt were fully established. • Legal Context: The case underscores the judiciary’s strict stance on maintaining the integrity of the legal profession and protecting the court from scandalous allegations that undermine public confidence in the administration of justice.
Sri Lanka’s Digital Shift: Growth vs. Governance Risks 📈
The 2026 budget has allocated Rs. 30 Bn to accelerate Sri Lanka's digital transformation, focusing on Digital Public Infrastructure (DPI). However, analysts warn of a "rights vacuum" and "efficient authoritarianism" if technical rollout precedes legal safeguards. • Overall Figures & Timeline • Total Budget: Rs. 30 Bn (approx. US$ 98 Mn) for 2026 initiatives. • Digital ID (SL-UDI): Rs. 2.2 Bn allocated; launch expected by Q3 2026. • Start-up Fund: Rs. 1.5 Bn (US$ 5 Mn) to catalyze the ICT/BPM ecosystem. • The Digital Divide Based on UNDP data, a significant gap threatens to "hard-wire inequality": • 39% of households remain offline. • 34% gender gap in internet use. • Disability Gap: Only 7% of persons with disabilities have internet access, vs. 24% of the general population. • Key Risks & Sector Impacts • Governance: The Online Safety Act (OSA) and biometric collection proceed without vernacular (Sinhala/Tamil) documentation, risking the exclusion of linguistic minorities. • Disaster Management: Evidence suggests 2025 cyclone fatalities were exacerbated by a 12-hour delay in Tamil-language warnings. • Apparel & Textiles/Finance: Move toward a cashless society (waiving fees on gov payments < Rs. 5,000) lacks "analogue alternatives" for those with low digital literacy. • Policy Recommendations Experts urge donors to condition disbursements on: • Trilingual Transparency: Simultaneous release of all DPI documents. • Legal Safeguards: Fully operational Data Protection Authorities before data collection. • Inclusive Consultations: Documented engagement in Northern and Eastern provinces. _Note: Summary based on provisional 2026 budget data and recent socio-economic analysis._
Port of Colombo Marks 20 Years of MEGAPORT Security Partnership 🛡️
The Sri Lanka Ports Authority (SLPA) celebrated two decades of collaboration with the MEGAPORT Initiative, a critical global security program focused on preventing the illicit trafficking of nuclear and radiological materials. • Strategic Milestone: Established in 2006, the Port of Colombo was the first in South and Southeast Asia to adopt this initiative, aligning with UN Security Council Resolution 1540. • Technology & Operations: The program utilizes advanced radiation detection systems to interdict illicit materials while maintaining the maritime hub's trade competitiveness. • Collaborative Framework: Operations are managed by the SLPA and Sri Lanka Customs, with ongoing technical assistance, equipment, and training provided by the US National Nuclear Security Administration (NNSA). • Security Network: Security personnel across all major terminals—including JCT, SAGT, CICT, CECT, and CWIT—serve as Local Alarm Station operators to ensure seamless surveillance. This partnership remains a cornerstone of Sri Lanka’s maritime security and its role in safeguarding international trade routes.
⚠️ Lessons for Sri Lanka: Tragic Death During Indian Tax Raid
The recent death of Confident Group Chairman C. J. Roy during an Indian Income Tax search operation serves as a critical warning for Sri Lanka's evolving fiscal landscape. As the Inland Revenue Department (IRD) intensifies enforcement under IMF-linked targets, the incident highlights the high personal stakes of non-compliance. • Risks for Taxpayers: Non-compliance is no longer just a financial risk; it carries severe psychological and reputational consequences. Sri Lankan taxpayers are urged to view compliance as a "shield" for personal stability and dignity. • Tightening Net: With the introduction of digital TINs, bank transaction reporting, and integrated property databases, the "compliance net" in Sri Lanka is tightening. Authorities warn that silence today does not guarantee safety tomorrow. • Operational Ethics: The tragedy underscores that tax enforcement must be firm yet proportionate. Experts call for: • Clear, written search protocols and senior-level oversight. • Documented communication over informal verbal pressure. • Guaranteed access to professional representation. • Policy Balance: For sustainable revenue growth, the system must balance enforcement with fairness. Fear-based compliance is fragile; building trust through voluntary disclosures and humane practices is essential for long-term fiscal health. Summary based on reports as of Feb 9, 2026. ---
### 📈 Excise Department Reaches Consensus on Digitalisation and Modernisation
All trade unions within the Excise Department have officially agreed to a comprehensive digitalisation and modernisation programme aimed at boosting national revenue collection. The consensus follows high-level discussions at the Presidential Secretariat to streamline operations and enhance transparency. • Revenue & Efficiency: The primary objective is to increase excise revenue collection by improving departmental efficiency through technology. This includes implementing new reforms and a robust digitalisation process. • Modernisation Initiatives: The programme focuses on the Revenue Administration Reform and Modernization Bureau’s proposals to transition from manual to digital systems, addressing longstanding gaps in tax collection. • Officer Welfare: Beyond technology, the plan incorporates human resource development and the welfare of officers to ensure smooth implementation and long-term sustainability. • Stakeholder Alignment: The agreement involves the Director General of Excise, Mr. M. B. N. A. Premarathne, and representatives from all trade unions, signaling a unified approach to fiscal reform. _Status: Based on official reports from the Presidential Secretariat._ ---
🚨 Probe Launched Into Ambuluwawa Cable Car Project
The Ministry of Environment has initiated a formal investigation into alleged irregularities surrounding the proposed cable car project at the Ambuluwawa Biodiversity Complex, following a joint inspection led by Minister Dr. Dammika Patabendi. Construction remains suspended pending a final decision. • Key Irregularities: Preliminary findings suggest violations of the National Environmental Act, including the failure to publish mandatory Gazettes or newspaper notifications during the approval process. Allegations surfaced that a full Environmental Impact Assessment (EIA) was bypassed in favor of a basic study, despite the area's ecological sensitivity. • Land & Legal Disputes: The Department of Wildlife Conservation reported unauthorized construction on its lands. A complaint has been filed with the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) against the Central Environmental Authority (CEA) for alleged procedural bypasses. • Environmental Impact: The site hosts 428 species, including 69 endemic and 58 nationally threatened species. Concerns were heightened following environmental damage reported after Cyclone Ditwah. • Next Steps: An expert committee will be appointed to review technical concerns and legal compliance before determining the project's future. 📈
Customs Union Meeting Disrupts Port Operations 📈
Private sector stakeholders have raised concerns over a sudden halt in cargo clearance yesterday, as officers at Sri Lanka Customs suspended work to attend a union meeting. • Overall Impact: Import and export operations effectively came to a standstill starting around 1:00 p.m. While Colombo-based officers attended the meeting, outstation staff reportedly awaited instructions, causing a localized paralysis of trade logistics. • Operational Update: A Customs spokesperson confirmed a two-hour afternoon meeting but stated that duties resumed shortly after. The specific agenda of the union meeting remains undisclosed by the administration. • Industry Concerns: The private sector warned that even brief stoppages trigger a "domino effect," resulting in: • Increased demurrage and terminal charges. • Disruption of tightly scheduled supply chains. • Delays for time-sensitive shipments, affecting the apparel & textiles and perishable sectors. The incident underscores the continued vulnerability of Sri Lanka’s external trade to internal administrative disruptions, despite ongoing efforts to enhance border agency predictability.
### 📈 Advocata Urges Permanent End to Vehicle Permit "Privilege Culture"
The Advocata Institute has strongly cautioned the government against reviving vehicle import permits, warns that exempting high-ranking officials threatens reform credibility and public trust. • Current Status: Despite a broader import ban affecting ordinary citizens, 1,900 permits have been issued to senior officials under concessional schemes, with 563 permits issued in 2025 alone. • Budget 2026 Commitment: President Anura Kumara Dissanayake declared an end to the "permit culture" during the 2026 Budget, yet recent discussions regarding retired officials suggest potential reversals. • Fiscal Impact: Duty-free permits represent significant revenue loss. Historical data shows tax waivers per MP have ranged from Rs. 66 million to Rs. 98.5 million in today’s terms. • The "Privilege" Gap: While officials seek exemptions, the general public faces some of the world's highest effective taxes on personal transport vehicles, with duties ranging from 125% to 250%. • Recommendations: • Abandon all plans to allow imports under existing duty-free permits. • Replace discretionary perks with transparent, on-budget salary structures. • Legislate a permanent prohibition to prevent future policy reversals. Based on provisional parliamentary statements and 2026 Budget proposals.
Sri Lanka Approves 5-Year Renewable Energy Roadmap 📈
The Cabinet of Ministers has officially cleared the Renewable Energy Resources Development Plan 2025–2030. This strategic framework is designed to transition the national grid toward sustainable sources, ensuring energy security and long-term climate resilience. • Core Targets: Aiming to meet 70% of national electricity demand via renewable energy by 2030, with a long-term goal of total carbon neutrality by 2050. • Strategic Focus: Identifying and prioritizing suitable land for green projects and establishing a comprehensive Renewable Energy Map and Renewable Energy Gardens across the island. • Diversification: Key emphasis on developing floating solar projects to optimize land use and expanding the solar and wind energy footprint. • Implementation: Prepared by the Sri Lanka Sustainable Energy Authority (SLSEA), the plan sets a clear timeframe for energy park development and addresses environmental concerns, including human-elephant conflict, through stakeholder consultations. • Economic Impact: Aims to reduce heavy reliance on expensive fossil fuel imports, aligning with the national shift toward a green economy to support industrial stability and ICT/BPM sector growth. _Note: Plan based on statutory requirements of the SLSEA Act No. 35 of 2007._
📈 HRCSL Warns of Threats to Freedom of Expression
The Human Rights Commission of Sri Lanka (HRCSL) has expressed deep concern over emerging threats to freedom of expression, specifically targeting the ability of journalists to report on matters of public interest without interference. • Misuse of Police Powers: The Commission highlighted a growing trend of law enforcement investigating allegedly defamatory speech, despite defamation being decriminalized in Sri Lanka since 2002. Police have no legal authority to investigate complaints that fall strictly under civil jurisdiction. • Procedural Violations: A recent inquiry into journalist Tharindu Jayawardena—regarding reporting on corruption and public funds—violated a 2025 IGP circular. The directive requires officers to clearly disclose the basis for any summons, which was not done in this instance. • Online Safety Act (OSA) Concerns: The HRCSL raised serious questions regarding the constitutionality of the Online Safety Act. It warned that the law is being deployed to suppress dissent rather than addressing genuine online harms like phishing or malware. • Constitutional Standards: The Commission reiterated that freedom of expression protects speech even if it "shocks or disturbs" the State. It reminded public figures that international standards require them to tolerate a higher degree of criticism than private citizens. • Recommendations: The HRCSL called for a moratorium on the Online Safety Act and urged authorities to stop using criminal processes for civil defamation matters to prevent public frustration and social unrest.