📈 Cabinet Clears Drafting of Key Investment Protection Bill

The Cabinet of Ministers has approved instructing the Legal Draftsman to draft a new Investment Protection Bill (also referred to as the Investment Security Bill). This move follows a proposal introduced in the 2025 Budget. • Core Objective: The proposed law seeks to explicitly prevent the arbitrary nationalisation of private enterprises and assets, aiming to ensure long-term policy stability for both domestic and foreign investors. • New Mechanism: It mandates the establishment of an Investment Protection Board to provide a structured and transparent mechanism for resolving investment-related disputes. • National Context: The Government views the legislation as a critical step to enhance policy predictability, strengthen investor confidence, improve the country's ease of doing business ranking, and attract sustainable Foreign Direct Investment (FDI). • The proposal for the new Act was submitted by President Anura Kumara Dissanayake in his capacity as the Finance, Planning and Economic Development Minister.