The Cabinet of Ministers has approved a proposal to introduce new laws preventing the arbitrary nationalisation of private enterprises and properties, as part of broader efforts to strengthen investor confidence and ensure long-term policy stability in Sri Lanka.
Announcing the decision at the weekly Cabinet media briefing, Cabinet Spokesman and Health and Mass Media Minister Dr. Nalinda Jayatissa said the initiative, first proposed in the 2025 Budget, includes the creation of an Investment Security Board to serve as a dedicated dispute resolution mechanism for investors.
Dr. Jayatissa explained that the upcoming Investment Protection Act will establish a comprehensive legal frameworkdesigned to prevent politically motivated or arbitrary takeovers of private businesses, assets, or properties.
“Over the years, certain government actions have led investors to lose trust in Sri Lanka,” he said. “It has therefore become necessary to introduce legal safeguards to protect investments and rebuild confidence.”
He added, “If investors fear that their assets might be taken over when governments or ministers change, they will hesitate to invest. This affects both local and foreign investors. It is essential to demonstrate that Sri Lanka is firmly committed to upholding investment security.”
The Minister also stressed that policy inconsistency has long been a deterrent to investment and that the new legislation seeks to guarantee a stable and predictable policy environment.
To advance this initiative, the Cabinet has approved the proposal submitted by President Anura Kumara Dissanayake, in his capacity as Minister of Finance, Plan Implementation, and Economic Development, to instruct the Legal Draftsman to prepare the draft Bill.
A committee of officials has already been appointed to develop the initial concept paper for the proposed Act, which will guide the drafting process.
