Regulatory & Policy News
View all(82)Sri Lanka Unveils First National Food Safety Policy 🥗
Sri Lanka has launched its first-ever National Food Safety Policy to transform the national food control system, safeguard public health, and drive economic growth through a risk-based framework. • Policy Overview: Led by the Ministry of Health and Mass Media (FCAU), the initiative provides strategic direction across the entire value chain—from production to consumption—resolving a long-standing gap in institutional coordination. • International Support: Developed with technical assistance from the FAO and funding from the European Union via the BESPA programme. • Legislative Integration: Supported by an upcoming update to the Food Act to enforce governance and regulatory compliance. Strategic Priority Areas: • Food safety governance & institutional coordination • End-to-end food chain controls & risk management • Legislative frameworks & enhanced standards • Surveillance, laboratory capacity & risk analysis • Stakeholder communication, education & capacity building • Monitoring & evaluation mechanisms Economic Impact: The framework aims to bolster consumer confidence, boost competitiveness in agriculture and agrifood exports, lower food losses, and expand growth opportunities in international trade and tourism.
🚨 Border Delays Act as Domestic Non-Tariff Barriers for Sri Lanka's Exports
• Overview: Domestic border delays, excess documentation, and inefficient clearance procedures are creating hidden costs for exporters, threatening the global competitiveness of Sri Lanka's apparel & textiles, tea, and other key sectors. • Competitor Gap: Sri Lanka's UN Digital and Sustainable Trade Facilitation Survey index rose from 43.01% (2015) to 63.44% (2025). However, key regional competitors outpace Sri Lanka significantly in 2025: • India: 93.55% • Malaysia: 90.32% • Thailand: 88.17% • Vietnam: 77.42% • Key Issues Identified: • Redundant paper submissions across multiple state bodies despite digital steps like Customs' pilot paperless CusDec program. • Incomplete operationalization of pre-arrival processing, risk management, and Authorised Economic Operator (AEO) systems. • Infrastructure bottlenecks, physical examination delays, and lack of advance notice for new regulatory changes. • Proposed Solutions & Roadmap: • Next 6–12 Months: Deploy a public clearance time dashboard, scale pre-arrival processing, simplify AEO enrollment, and enforce single-submission documentation. • By 2027: Fully realize OneTRADE/TNSW benefits by redesigning workflows across 18 connected institutions. • By 2030: Leverage the single window to establish cross-border electronic document exchanges and mutual AEO recognition with global trading partners.
📈 Sri Lanka Plans Major 2027 Expansion for E-Procurement Platform Promise.lk as Deals Near Rs. 42 Bn
Sri Lanka’s Ministry of Finance, Planning and Economic Development has outlined major expansion plans for 2027 to widen the scope of its electronic Government Procurement (e-GP) system, Promise.lk. The platform currently manages public spending primarily for shopping-method goods procurements but will expand to cover national and international competitive bidding for goods, works, consulting, and non-consulting services. Advanced features like reverse auctions and e-catalogues are also planned. • Overall Growth & Figures: - Cumulative Value: 80,390 e-procurements conducted since 2020 totaling Rs. 41.94 Bn. - Rapid Adoption: Volume rose from 2,812 (2023) to 18,149 (2024), reaching 31,099 in 2025. - 2026 Performance (Jan–Jul): 25,294 procurements conducted valued at Rs. 13.26 Bn (approx. 87% of total 2025 procurement value). • Active Entities: - 324 active procuring entities currently on board, including 19 of 25 Cabinet Ministries and 143 departments. - 90% of General Treasury departments conduct routine procurement via the platform, where shopping-method goods procurement is mandatory. • Supplier Support & Thresholds: - Fee Waiver: Vendor registration fees will be waived from September 2026 to expand the registered supplier base and enhance competition. - Procurement Ceilings: Ministry limits stand at Rs. 25 Mn (government-funded) and Rs. 35 Mn (foreign-funded). Department/Project limits are Rs. 20 Mn and Rs. 30 Mn respectively.
🚦 Cabinet Approves Completion of Access Roads to Homagama Tech City
The Cabinet of Ministers has approved domestic funding to complete two unfinished road links designed to enhance direct access to the Homagama-Pitipana Mahenawatta Tech City and ease regional traffic congestion. • Overall Project Details: • The project will complete a remaining 50-metre stretch of the Western bypass (Homagama Walawwatte to Kotuwana) to link directly with the High Level Road. • Works include finishing approximately 650 metres of an access road connecting the Tech City (Pitipana–Dampe Road) to the Kottawa–Talagala Road, running between the University of Sri Lanka and the Sri Lanka Institute of Biotechnology. • Economic & Sector Impact: • Aims to remove critical connectivity bottlenecks to strengthen national technology-driven development, innovation, and knowledge-based industries. • Improves overall road infrastructure and traffic flow across the Homagama, Pitipana, and Kottawa areas to support regional commerce. • Implementation: • Proposed by Transport, Highways, and Urban Development Minister Bimal Rathnayake. • Funded entirely through domestic allocations to finalize works stalled since construction originally began in 2020.
🇱🇰 Cabinet Clears Agreement to Host BIMSTEC Technology Transfer Facility
The Cabinet of Ministers has approved a key agreement with the BIMSTEC Secretariat to establish the regional BIMSTEC Technology Transfer Facility in Sri Lanka. • Key Objective: Deepen regional cooperation, improve productivity, and enhance competitiveness by facilitating technology transfer and managing intellectual property rights. • Target Sector: Designed to strengthen technical capacity for micro, small, and medium-sized enterprises (MSMEs) across all seven BIMSTEC member states. • National Context: Positioned to drive innovation and support regional economic integration by providing a platform to share expertise and advanced technologies. • Background & Progress: First agreed upon at the 2008 Summit in New Delhi, the primary establishment agreement was signed at the 5th Summit in Colombo in March 2022. The latest Cabinet approval authorizes the final operational and management agreement to set up the host facility in Sri Lanka.
Cabinet Approves Parliamentary Submission for 68 Port City Entities 🏛️
• Overview: Sri Lanka’s Cabinet of Ministers approved submitting gazetted regulations to Parliament designating 68 entities in the Colombo Port City as Secondary Businesses of Strategic Importance. • Legal & Regulatory Framework: The proposal falls under the Colombo Port City Economic Commission Act No. 11 of 2021. Initial Cabinet approval was granted on March 30, 2026, followed by Extraordinary Gazette publication on April 10, 2026. • Sector Breakdown: The 68 designated entities cover ICT/BPM (information technology & business process outsourcing), consulting services, logistics, infrastructure, hybrid/combined business models, and public enterprises. • Strategic Focus: Minister Nalinda Jayatissa stated the objective is to build a transparent, functional, and investment-friendly framework while removing existing bottlenecks to attract foreign capital.
⚖️ TISL Challenges Proposed Anti-Corruption Amendments in Supreme Court
Transparency International Sri Lanka (TISL) has filed a Supreme Court petition challenging the government's proposed amendments to the Anti-Corruption Act, citing constitutional violations and policy regressions. • Core Legislation: Prime Minister Harini Amarasuriya presented the bill on August 19, 2026, aiming to address operational bottlenecks, meet IMF requirements, and align with UN anti-corruption standards. • Proposed Strict Penalties: The bill introduces mandatory secondary fines up to 3x the value of corruptly acquired property/state losses and revokes unlawful non-monetary perks upon conviction. • Key Legal & Policy Concerns Raised by TISL: • Prosecutorial Oversight: Empowers the CIABOC Director-General to grant immunity to accomplices without requiring Magistrate authorization, eliminating judicial checks. • Asset Declarations Threshold: Raises the state-linked company shareholding threshold from 25% to 50% for mandatory asset disclosures, conflicting with the RTI Act. • Asset Hiding Loopholes: Repeals mandatory asset declarations for non-dependent household cohabitants, creating avenues to conceal illicit wealth. • Redaction & Civic Restrictions: Grants broad power to redact asset disclosures and criminalizes the public use of redacted disclosures (penalties up to LKR 100,000 fine and/or 1-year imprisonment), threatening investigative journalism and civic space. • Constitutional Demand: TISL states the contested clauses require a two-thirds parliamentary majority and a public referendum to become law.
🤝 Cabinet Approves Sri Lanka-South Korea Legal Assistance Pact ⚖️
• Key Decision: Sri Lanka’s Cabinet of Ministers approved a proposal to sign a Mutual Legal Assistance agreement in criminal matters with South Korea. • Scope & Objectives: - Enables mutual cooperation to gather evidence, serve judicial documents, and exchange information cross-border. - Aims to enhance cross-border investigations and prosecution of criminal offenses. • Background: The framework for this agreement was initially proposed in 2023 but had remained unsigned until this approval.
Sri Lanka Approves Immigration Pact with China to Boost Travel & Security 📈
• Key Highlights: Sri Lanka’s cabinet has approved a bilateral immigration control agreement between the Department of Immigration and Emigration and China's National Immigration Administration to improve border management, institutional coordination, and intelligence sharing. • Sector Impact: The pact aims to streamline visa processes and facilitate legitimate movement for individuals engaged in tourism, investment, and foreign trade, while strengthening measures against organized crime and human trafficking. • Institutional Support: The agreement supports institutional head visits and specialized training workshops to upskill local immigration officers. The draft was cleared by the Attorney General and the Ministry of Foreign Affairs, Foreign Employment and Tourism. • Official Clarification: Government spokesperson Minister Nalinda Jayatissa clarified that the deal is a long-planned broader security initiative, dismissing links to recent arrests of foreign nationals or tourist-visa holders involved in cybercrimes.
⚖️ Supreme Court Begins Hearing on Proposed 22nd Amendment
• Overview: The Supreme Court of Sri Lanka starts hearing petitions today challenging the constitutionality of the government’s proposed 22nd Amendment (22A) to the Constitution. • Judicial Bench Composition: The case is under scrutiny by a five-member Supreme Court bench: - Chief Justice Preethi Padman Surasena (Bench Head) - Justice Achala Wengappuli - Justice Arjuna Obeysekera - Justice Sampath Abeykoon - Justice Gihan Kulatunga • Key Contests & Objections: - The proposed amendment focuses on extending the retirement age of higher-court judges. - Certain petitioners have requested the Chief Justice to recuse himself from the bench, while others have called for a full-bench hearing.
⚖️ Sri Lanka's Proposed 22nd Amendment: Reform vs. Judicial Independence Debate
The Government of Sri Lanka has introduced reforms under the proposed 22nd Amendment to the Constitution aimed at modernizing the judiciary, clearing massive case backlogs, and boosting system efficiency. • Key System Challenges & Context • Sri Lanka currently faces over 1.1 million pending court cases. • Historical political interference and institutional issues have long impacted governance and rule of law. • Historical corruption, political misuse of public funds, and weak judicial independence metrics highlight the urgent need for institutional integrity. • Key Proposed Judicial Reforms • Retirement Age Extension: Supreme Court judges extended from 65 to 67 years; Court of Appeal judges from 63 to 65 years; High Court judges from 61 to 63 years; other judges/magistrates set at 62. • Bench & Infrastructure Expansion: Expands Court of Appeal judges from 19 to 24, expands legal infrastructure to rural regions, and increases prison capacity. • Constitutional Oversight: Restructures the Constitutional Council to supervise independent commissions (e.g., Police, Audit, Human Rights). • Modernization & Tech: Retains experienced senior judges to accelerate adoption of AI and digital systems to streamline court backlogs and enhance efficiency. • Debate & Opposition Arguments • Opposition parties and the Bar Association of Sri Lanka (BASL) oppose extending judicial tenures, claiming it could compromise judicial independence. • Proponents argue the amendment provides a holistic, multidisciplinary approach that combines tenure extensions, digital transformation, and structural checks to clear backlogs efficiently.
🌿 World Bank Backs US$ 1 Mn Groundwork for Sri Lanka's Nature-Tourism Sector
Sri Lanka’s Cabinet has approved a US$ 1 Mn grant from the World Bank's Grant Facility for Project Preparation (GFPP) to fund 18 months of groundwork for a major nature-based tourism initiative. • Strategic Focus: The grant funds project preparation for the Tourism for Heritage Resilience Inclusion and Value-driven Employment (THRIVE) – Nature project, submitted by Environment Minister Dr. Dammika Patabendi. • Core Objective: Address the country's weak tourism revenue growth relative to rising visitor arrivals by shifting focus from sheer volume to high-value, quality experiences. • Key Interventions: Combines habitat restoration and conservation with tourism infrastructure upgrades across national parks, forests, and wetlands. • Synergy: Expands and strengthens existing programs under the World Bank-funded Ecosystem Conservation and Management Project to ensure long-term environmental sustainability alongside economic growth.