In a controversial move that signals both reform and potential redundancy, the Sri Lankan government has announced plans to establish a new Public-Private Partnership (PPP) unit—despite the continued existence of the National Agency for Public-Private Partnership (NAPPP) under the Ministry of Finance.
This decision has stirred public debate, particularly due to the NAPPP’s history and its founding leadership under Thilan Wijesinghe.
The agency was established with significant backing from international donors, including a US$25 million commitment from the World Bank and technical assistance from the Public-Private Infrastructure Advisory Facility (PPIAF).
These institutions supported the development of Sri Lanka’s PPP policy framework and helped lay the foundation for a structured, transparent approach to private sector engagement in infrastructure development.
Government sources claim the proposed new unit will either function independently or be embedded within sector-specific ministries such as transport or energy.
The rationale, officials say, is to enhance sectoral expertise, fast-track project execution, and decentralize decision-making by empowering line ministries.
“This is not necessarily a rejection of the existing PPP framework, but rather an evolution,” said a senior official close to the plan. “We need a more agile, sector-focused approach if we are to attract serious investment and deliver timely results.”
However, critics argue that this move risks institutional overlap and inefficiency unless the government clearly defines the respective roles of the new unit and the existing NAPPP.
“Creating parallel systems could result in bureaucratic confusion rather than improved governance,” warned one infrastructure expert.
Policy analysts acknowledge that while the NAPPP helped launch a pipeline of PPP projects across sectors such as energy, transport, and social services, its effectiveness was hampered by institutional bottlenecks, limited sector-specific expertise, and delays in project implementation.
The agency was disbanded under the previous administration but received renewed backing in the 2022 interim budget, which allocated Rs. 250 million (about US$691,000) for its re-establishment.
Beyond domestic objectives, the establishment of a new PPP unit appears influenced by international financial institutions, which have repeatedly called for improved governance, fiduciary controls, and transparency in PPP initiatives.
Donors like the World Bank and Asian Development Bank have emphasized the need for independent oversight, better project vetting, and enhanced stakeholder engagement.
Civil society organizations, too, have long voiced concerns over the opaque nature of previous PPP deals.
The government claims the new unit will place greater emphasis on transparency, risk management, and public consultation—measures seen as essential for regaining public trust in infrastructure programs.
Yet the question remains: can Sri Lanka afford to duplicate institutions in its fragile economic state, or will this reform bring the much-needed structural efficiency?
he coming months will be critical in determining whether this shift will catalyze improved private investment and infrastructure delivery—or merely add another layer to an already complicated system
