The Cabinet of Ministers has approved the establishment of a National Regulatory Reform Council chaired by President Anura Kumara Dissanayake, in a move aimed at overhauling the country’s business regulatory framework and improving the investment climate.
The decision follows a comprehensive assessment of the regulatory environment by the Industry and Entrepreneurship Development Ministry with assistance from the Asian Development Bank. The review found existing regulatory constraints continue to weigh on private sector growth, particularly affecting small and medium-sized enterprises, while also undermining Sri Lanka’s attractiveness as an investment destination.
Although the country retains strong economic fundamentals, inefficiencies in regulation, licensing and administrative procedures have created barriers to competitiveness and business expansion, the government said.
“Following consultations with relevant stakeholders, the Ministry formulated a National Regulatory Reform Action Plan together with an operational implementation framework. The plan includes a series of practical recommendations prioritised across short-, medium- and long-term timelines,” Cabinet spokesman Minister Vijitha Herath said at the weekly post-Cabinet briefing.
He said the new Council will serve as the central institutional mechanism overseeing, directing and supervising the reform agenda. The Industry and Entrepreneurship Development Ministry will function as its Secretariat.
The proposal was submitted by Industry and Entrepreneurship Development Minister Sunil Handunneththi, whose ministry has been the lead on the SME-facing leg of the recovery programme.
The initiative comes as Sri Lanka seeks to accelerate economic recovery under the IMF-supported reform programme that Mission Chief Evan Papageorgiou this week described as “considerably stronger than in past”, and as authorities push to attract greater private investment. Regulatory reform has been identified by investors and multilateral agencies as a key requirement for improving ease of doing business and reducing compliance costs. It also pairs with the National Data Exchange Centre cabinet paper as part of the government’s institutional-mechanism push this week.
