Regulatory & Policy News
View all(100)📈 IMF & World Bank Launch ‘Bangkok Blueprint’ to Curb Digital Financial Fraud
The International Monetary Fund (IMF) and the World Bank Group (WBG), in partnership with the Bank of Thailand, have released the _Bangkok Blueprint_ to address cyber-enabled fraud in digital financial services. • Framework Overview: Launched during the 2026 IMF–WBG Annual Meetings, the blueprint provides 12 key considerations to help nations identify systemic vulnerabilities and implement coordinated responses. • Key Objectives: Protect financial integrity, protect consumers, build trust in modern payment ecosystems, and safeguard the expansion of digital financial services (such as e-commerce, ICT/BPM, and digital payments). • Strategic Pillars: Organized around five core focus areas: 1. Strategic & legal foundations 2. Fraud-mitigation life cycle 3. Risk-mitigation & enforcement tools 4. Public-private & cross-border cooperation 5. Consumer protection & resilience • Cross-Sector Impact: Emphasizes shared accountability across financial institutions, telecommunications networks, digital platforms, and public law enforcement to mitigate transnational organized financial crime. • Relevance to Sri Lanka: As Sri Lanka expands digital banking and online payment channels to foster financial inclusion, adopting such anti-fraud frameworks is vital to🌐 IMF and World Bank Launch 'Bangkok Blueprint' to Combat Cyber Fraud in Digital Finance The IMF and World Bank Group released the _Bangkok Blueprint_ during the 2026 Annual Meetings to help nations counter cyber-enabled fraud in digital financial services, addressing threats linked to transnational organized crime. • Global Threat & Objectives: - Aims to safeguard trust, growth, and inclusion in digital finance. - Targets high-speed, large-scale cyber fraud ranked by INTERPOL alongside drug trafficking. • Framework Pillars: - Built on 5 core pillars: strategic/legal foundations, fraud-mitigation life cycles, risk enforcement, public-private cross-border cooperation, and consumer protection. - Features 12 key considerations for nations to tailor to local institutional conditions. • Impact on Emerging Markets: - Protects critical digital infrastructure essential for ICT/BPM, e-commerce, telecommunications, and financial inclusion. - Promotes cross-sector accountability across digital platforms and telecom networks. • National Context: - Provides a global framework for Sri Lanka to strengthen domestic digital financial security, bolster investor confidence, and accelerate safe digital economy adoption.
🇱🇰 Sri Lanka Awards Rs 1.07 Bn Contract for Kandy-Jaffna Road Widening 🛣️
• Project Details: Cabinet has approved awarding a contract valued at Rs 1.070 Bn (excluding VAT, including contingency provisions) to Tudawe Brothers (Pvt) Ltd for the widening and improvement of the Kandy–Jaffna Road (A009). • Scope & Selection: The tender covers a 4.76 km stretch from Km 58+240 to Km 63+000. Tudawe Brothers was selected as the lowest substantially responsive bidder out of 8 bids received. • Economic Context: Infrastructure development along the key A009 arterial highway supports national connectivity, domestic trade, and local transport logistics.
Sri Lanka Aims to Ease Forex Rules to Boost Electronics Exports 📈
Sri Lanka's Central Bank and Export Development Board (EDB) have engaged with electrical and electronics manufacturers to resolve regulatory bottlenecks and align monetary policy with export growth targets. • Target & Strategy: Aiming to scale sector revenue to US$ 1.00 Bn by 2028 through export-friendly foreign exchange, monetary, and fiscal frameworks. • Current Sector Standing: The electronics & electrical industry ranks as Sri Lanka's 5th largest merchandise export earner, generating US$ 440 Mn in 2025 revenue. • Economic Footprint: Crucial for industrial diversification and employment, supporting over 100 manufacturing companies and a 37,000-strong workforce. • Key Focus Areas: Discussions centered on resolving operational hurdles in inward/outward transaction rules, working capital, and forex repatriation regulations.
🚨 Japan Grants Rs. 4.56 Bn for Kelani River Basin Upgrade
• Project Overview: The Government of Japan has agreed to provide a grant of Yen 2.18 billion (approx. Rs. 4.56 Bn) to modernize the Kelani River basin pumping station. • Agreements: Cabinet approved signing an Exchange of Notes with Japan and a grant agreement with the Japan International Cooperation Agency (JICA), following a proposal by the President. • Target Areas: Designed to significantly cut flood risk in the lower sub-basin, specifically benefiting urban infrastructure and communities in Wattala and Peliyagoda. • Economic Impact: Supports sustainable urban development by unlocking land potential for real estate and broader national economic activities.
📈 Govt Launches Rs. 500 Mn Co-Financing Scheme for High-Growth R&D
The Government has introduced a co-financing scheme under Project Window 03 of the National Research and Development Commercialisation Gateway to commercialise high-potential R&D ventures, Cabinet Spokesperson Dr. Nalinda Jayatissa announced. • Funding Structure per Project: • Grant: Rs. 10 million direct grant. • Concessionary Loan: Up to Rs. 40 million at a 3% interest rate. • Commercial Bank Credit: Up to Rs. 450 million with a 5% interest subsidy for additional scale-up needs. • Total Support: Up to Rs. 500 million per venture. • Existing R&D Gateway Windows: • Window 01: Full grants up to Rs. 10 million for small-scale growth projects. • Window 02: Grants up to Rs. 10 million plus loans up to Rs. 40 million (at 3% interest) for medium-scale ventures. The initiative aims to accelerate the commercial scale-up of Sri Lanka's high-potential research ventures through public-private credit integration.
🏛️ Cabinet Approves Amendments to 54-Year-Old Co-operative Employees Commission Act
The Government has approved a proposal to amend the Co-operative Employees Commission Act No. 12 of 1972 to align with evolving socio-economic conditions and updated public policy on co-operative operations. • Legal Process: The Legal Draftsman has been instructed to draft an amending Bill based on a preliminary proposal submitted by the Co-operative Employees Commission. • Stakeholder Input: The draft incorporates feedback from co-operative societies, board members, employees, and relevant industry stakeholders. • Governance: The cabinet proposal was presented by the Minister of Trade, Commerce, Food Security and Co-operative Development, as announced by Cabinet Spokesperson Dr. Nalinda Jayatissa.
Sri Lanka Shelves 2024 Public Enterprise Management Bill for Fresh Draft 📈
• Overview: The Cabinet has decided to halt progress on the Public Enterprise Management Bill published in August 2024 and direct the Legal Draftsman to prepare a fresh draft. • Key Details: • Proposal presented by the President and approved at Monday's (12) Cabinet meeting. • The initial Bill was approved on 22 July 2024 and gazetted on 2 August 2024, but lapsed following the dissolution of Parliament later that year. • A committee of officials and subject experts reviewed the 2024 legislation to identify essential amendments. • The new Bill will be formulated based on the committee's preliminary recommendations to strengthen public enterprise governance and oversight.
Sri Lanka Secures US$ 100 Mn ADB Loan for Water Sector Reforms 📈
• Funding Structure & Breakdown - Total approved loan: US$ 100 Mn from the Asian Development Bank (ADB). - US$ 50 Mn: Policy-based loan. - US$ 50 Mn: Concessional ordinary capital resources. - Part of a broader US$ 620 Mn total ADB loan package financing national economic reforms. • Program Focus & National Impact - Target initiative: Water Supply and Sanitation Reform Program – Sub-program 2. - Addressing operational and financial inefficiencies, climate risk exposure, and water resource management weaknesses. - Improves stakeholder coordination and social inclusion across key public services.
📈 Sri Lanka President Outlines Reforms to Accelerate Capital Investment Spending
Sri Lanka is overhauling its public procurement and budget timelines to address deep-rooted structural delays in executing state-funded capital investment projects. • Capital Expenditure Deficit • Execution shortfall: Only ~30% (Rs. 385 Bn) of the Rs. 1,380 Bn capital budget spent in the first 9 months of 2026. • 2027 Expansion: Budget plans to raise public capital expenditure to ~Rs. 2,000 Bn (US$ ~6.6 Bn). • Key Procurement & Administrative Reforms • Procurement Modernization: Redesigning rigid rules to create domain-specific e-procurement protocols for complex software, defense repairs, and commercial operations (e.g., SriLankan Airlines). • Timeline Realignment: Treasury will provide advance funding assurances to agencies (e.g., Road Development Authority for Kurunegala–Galewela expressway) to tender and evaluate bids before formal budget passage, allowing instant deployment in January. • Talent Acquisition: Offering specialized, competitive compensation packages outside standard civil service salary scales to recruit high-caliber engineers and ICT/BPM specialists, expanding on the GovTech model. • Economic Implications • Unlocking delayed public investment in infrastructure, power grids, and digital networks is vital to boosting productivity, preventing GDP drag, and maintaining investor confidence in a post-default macroeconomic environment.
Sri Lanka Holds Tier 2 Ranking in US Trafficking Report for 5th Year 📈
• Overall Status: Sri Lanka retained its Tier 2 status in the US Department of State's 2026 Trafficking in Persons (TIP) Report for the fifth consecutive year. Tier 2 applies to countries making significant efforts despite not fully meeting minimum US elimination standards. • National Policy Action: Key progress was driven by launching the National Strategic Action Plan to Monitor and Combat Human Trafficking 2026-2030, establishing a five-year framework under the National Anti-Human Trafficking Task Force (NAHTTF) chaired by the Defence Secretary. • Local & Sectoral Frameworks: • District Anti-Trafficking Forums: Expanded across districts to link local authorities and law enforcement for early victim identification and referral. • Capacity & Partner Initiatives: Expanded training for frontline officers alongside inter-agency and international cooperation. • Emerging Threats: Targeted focus on technology-facilitated recruitment, online exploitation, and forced involvement in cyber-criminality. • Economic Context: Maintaining Tier 2 status supports compliance in key export-oriented foreign exchange sectors—such as foreign employment & migrant labor, apparel & textiles, and hospitality & tourism—safeguarding trade access and foreign remittance flows.
📈 Sri Lanka Retains $15 Bn Digital Economy Target for 2030 Despite AI Risks
Government reaffirms its ambitious goal to build a $15 Bn digital economy—including $5 Bn in digital exports—by 2030, despite AI disruption threatening traditional ICT/BPM service exports. • Export & Talent Strategy: • Aims to pivot from cheap back-office services to products, IP, and Global Capability Centres (GCCs). • BOI to introduce a capital mobility facility enabling local startups receiving FDI to expand overseas. • Virtual Special Economic Zones and global mobility policies to retain talent and IP locally. • Digital & Data Infrastructure: • Plans to expand local data centre capacity from ~5 MW to 25 MW in the short term, inviting private sector FDI. • Targets 100% broadband coverage by 2028 supported by 5G and a viability gap financing scheme. • Government & Citizen Services: • Limited rollout of Digital ID expected late 2026 / early 2027; full population coverage targeted within 18 months post-grant. • Over 350 institutions connected to GovPay, targeting 2,000 within 6–12 months. • Digital Economy Sandbox to open publicly within a month; Digital Economy Bill and Authority setup underway.
📈 BOI Plans Hambantota Zone Expansion & New Incentive Scheme
The Board of Investment (BOI) is preparing a new incentive scheme and expanding the investment zone at Hambantota Port, prioritizing clean energy, EV production, and vehicle parts, BOI Board Member Vish Govindasamy announced at SLEIS 2026. • Key Operational & Policy Initiatives: • New Incentive Scheme: Drafting updated incentives to attract future foreign direct investment (FDI) while prioritizing reinvestments from existing flagship investors. • National Land Database: BOI now holds a digitized master database identifying land availability and ownership across state agencies to streamline site allocation. • Zone Expansion: Developing 3 new zones in the Northern Province under BOT models. Currently, 278 active companies across 17 BOI zones account for ~$3 Bn in exports. • Growth Constraints & Reforms: • Policy Inconsistency: Cited overnight regulatory shifts as a primary barrier to long-term FDI; advocates guaranteed policy stability over 3–10 year horizons. • Labour & Bureaucracy: Stressed urgent labor law reform to improve regional competitiveness and highlighted efforts to streamline one-stop inter-agency approvals across 30–40 state entities. • Market Context & Market Access: • Maintains 100% foreign ownership in most sectors and 100% profit repatriation with MIGA coverage and 46 double-taxation relief agreements. • Trade agreements with India, Pakistan, and Singapore provide export access to ~2 Bn regional consumers, with BOI strongly prioritizing export-oriented projects.