Sri Lanka to enact new Investment Security Act

The Cabinet of Ministers has granted approval to the proposal by the President in his capacity as the Minister of Finance, Plan Implementation and Economic Development to formulate a bill to ensure the prevention of nationalization of private properties and also guarantee policy stability related to investments.

In the 2025 Budget, a proposal was presented to introduce a new act to realize the objectives of prevention of capricious nationalization of private properties including enterprises and properties, establishment of an investment security board as a mechanism of solving disputes and ensuring the policy stability and forecasting for investors.

Accordingly, a committee of officers was formed to prepare a concept paper to prepare a draft bill.

Based on the prepared concept paper by the committee, the Cabinet of Ministers has now granted approval to the proposal by the President to direct the Legal Draftsmen to draft the relevant bill.