EXPROPRIATION ACT TO BE REVIEWED
The Sri Lankan cabinet approved a proposal made by Minister of Public Enterprise, Kandyan Heritage and Kandy Development Lakshman Kiriella to present the draft bill prepared to repeal the Revival of Underperforming Enterprises or Underutilised Assets Act, No. 43 of 2011 – also known as the Expropriation Act – in parliament for approval.
The act, which has come under criticism from credit agencies and leading business chambers, was passed in 2011 to vest the government with underperforming enterprises or underutilised assets to make provisions for their proper management and the payment of relevant compensation.
However, as it was said to have adversely affected the country’s ease of doing business and increased investor uncertainty, a proposal was made during the Budget 2018 speech to repeal the act.