📜 Proposed NGO Bill Raises Regulation & Governance Concerns

• Scope & Mandate: - The Non-Governmental Organisations (Registration and Supervision) Bill (L.D.-O. 6/2026) seeks to repeal the VSSO Act No. 31 of 1980. - Expands state supervision beyond social welfare to all non-profit oriented activities, including policy advocacy and corporate CSR activities. • Core Criticisms & Regulatory Risks: - Lacks prior performance audit of the existing NGO Secretariat after four decades of operation. - Grants sweeping powers to a Competent Authority (CA) without judicial oversight, impacting constitutional rights to association and assembly. - Mandates alignment with government policy, potentially restricting independent advocacy in key economic and regulatory areas such as the online betting sector. • Financial Compliance & Alternatives: - Optimal Approach: Address money laundering risks by requiring audited financial accounts under the Companies Act or Societies Ordinance, utilizing specialized expertise from the Financial Intelligence Unit (FIU) and Central Bank of Sri Lanka (CBSL). - Second-Best Approach: Amend the bill to mandate court orders for intrusive actions and require Constitutional Council approval for CA appointments to ensure independence.