📈 Civil Liberties At Risk: Sri Lanka's Expanding Executive Powers

• Overall Assessment: Recent legislative trends in Sri Lanka show a continuous expansion of authoritarian executive power and citizen surveillance while eroding judicial oversight. Despite election promises to abolish oppressive laws like the Prevention of Terrorism Act (PTA), the current NPP government is pushing through restrictive legal frameworks originally drafted by previous administrations without adequate policy evaluation or public consultation. • Financial Laws and Executive Control: New legislative amendments passed or moved in March 2026 are increasingly weaponizing the financial sector to tighten state control over citizens' ordinary transactions: Microfinance & Credit Regulatory Authority: Introduces a burdensome regulatory framework and criminalizes non-compliance, severely impacting informal community credit practices that support grassroots livelihood and employment. Inland Revenue Amendment: Extends harsh administrative penalties, including potential imprisonment for taxpayers even while their administrative appeals are pending. Terrorist Financing & Money Laundering Amendments: Expanding police surveillance powers by allowing "any investigation technique" without prior judicial permission, while legalizing the use of police statements as trial evidence. Financial Transactions Reporting: Grants the Financial Intelligence Unit (FIU) sole power to freeze accounts and levy administrative fines up to Rs. 100 million without a judicial process. • Socio-Economic Impact: Critical pro-people reforms—such as workplace safety, family law reforms, consumer protection against predatory credit, and wage protection—remain stalled. The focus on heavily regulated "stability" prioritizes elite protection over addressing severe public hardships, including household debt, inflation-hit wages, and rising poverty.