Govt. to establish National Regulatory Reform Council under President

Thursday, 21 May 2026 05:25 - - {{hitsCtrl.values.hits}}

The Cabinet of Ministers on Monday 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 conducted by the Industry and Entrepreneurship Development Ministry with assistance from the Asian Development Bank.

It was noted that the review found that existing regulatory constraints continue to weigh heavily on private sector growth, particularly affecting small and medium-sized enterprises (SMEs), while also undermining Sri Lanka’s attractiveness as an investment destination.

The Government noted that although the country retains strong economic fundamentals, inefficiencies in regulation, licensing and administrative procedures have created barriers to competitiveness and business expansion.

“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,” Minister Vijitha Herath said at the weekly post-Cabinet meeting media briefing on Tuesday.

He said the newly approved National Regulatory Reform Council will serve as the central institutional mechanism responsible for overseeing, directing and supervising implementation of the reform agenda. Under the approved structure, the Industry and Entrepreneurship Development Ministry will function as the Secretariat to the Council.

The initiative comes as Sri Lanka seeks to accelerate economic recovery under an IMF-supported reform program and attract greater private investment following the country’s financial crisis. Regulatory reform has been identified by investors and multilateral agencies as a key requirement for improving ease of doing business, reducing compliance costs and encouraging entrepreneurship.

The proposal to this effect was submitted by Industry and Entrepreneurship Development Minister Sunil Handunneththi.