Monday Apr 06, 2026
Monday Apr 06, 2026
Monday, 6 April 2026 05:23 - - {{hitsCtrl.values.hits}}
Sri Lanka has completed several key governance reforms under its 2025 action plan, including asset recovery legislation and beneficial ownership disclosures, but major structural reforms such as the Public Procurement Law and the State-Owned Enterprise (SOE) framework have been delayed into 2026, according to a progress report.
This is according to the progress report of Governance Action Plan – 2025 recently published by the Presidential Secretariat.
The asset recovery law, aligned with the UN Convention Against Corruption, was enacted in April 2025, while amendments to the Companies Act enabling beneficial ownership disclosures were completed in August 2025. Supporting regulations and the public registry are expected to be operational by March 2026.
The proposed Public Procurement Bill, initially targeted for enactment by June 2025, has been delayed following consultations with stakeholders, including multilateral agencies. The final version is expected to be submitted to the Cabinet by mid-May 2026.
The Government has also introduced measures to improve transparency in procurement and fiscal reporting, including the publication of procurement contracts above Rs. 1 billion and details of tax exemptions on a biannual basis.
Progress on SOE reforms remains ongoing. Policy reviews, draft legislation, and stakeholder consultations were completed in 2025, with the proposed SOE Bill expected to be submitted to the Cabinet by end-April 2026. The establishment of a holding company structure for SOEs is contingent on the enactment of this legislation.
Reforms relating to the governance of the Employees’ Provident Fund (EPF) are also under review. A comprehensive study on strengthening the governance structure is expected to be submitted by March 2026.
On the administrative front, digitalisation initiatives are progressing. A digital land information system covering 2.5 million land parcels has been established, with plans to expand coverage to 10 million parcels underway. The electronic Government procurement platform is also in operation for selected procurement methods, with further expansion expected through 2026 and 2027.
Judicial sector reforms are also being implemented, including the establishment of additional courts and the rollout of case management and digitalisation systems across the court system.
In addition, amendments to the National Audit Act enabling the levying of fines on officials who fail to fulfil their responsibilities have been enacted. Measures relating to entitlements of politicians, including repealing pension laws and issuing guidelines to limit allowances and facilities, have also been completed.
