⚖️ Proposed NGO Bill Threatens Civic Space & CSR Activities

• Key Concern: The newly released draft of the Non-Governmental Organisations (Registration and Supervision) Act (L.D.-O. 6/2026) faces sharp criticism for potentially eroding democratic space by bringing all "non-profit oriented" and altruistic activities under strict state supervision. • Broad Scope & CSR Impact: The draft extends regulation to social services, foundations, trusts, and even Corporate Social Responsibility (CSR) activities of for-profit firms. Political parties are currently not exempted, though religious organisations and conventional businesses remain largely excluded. • Compliance & Penalties: NGOs will be legally required to "align with Government policies." Failure to submit annual reports or audits on time could result in fines up to LKR 100,000 without court recourse. The Competent Authority (CA) is granted expansive powers to enter premises, attend internal meetings, and suspend or deregister entities. • Implementation Hurdles: Critics note the Bill is structurally ungainly and difficult to implement. The NGO Secretariat’s recurrent budget for 2026 is just LKR 3 million, leaving the CA severely underfunded and understaffed to effectively monitor money laundering or evaluate complex civil society projects. Based on provisional draft text.