Three key bills set to unlock investments before budget

Three pivotal bills aimed at unlocking large-scale investments and restructuring the economy; the Port City Amendment Act, a new Public-Private Partnership (PPP) Act, and the State-Owned Enterprise (SOE) Restructuring Act; are expected to be enacted by September, according to Senior Economic Adviser to the President Duminda Hulangamuwa.

“All these laws we have planned to pass before the budget in November. And we feel that we will create the bedrock required for the private sector,” he said. Delivering the keynote address at the 171st Annual General Meeting of the Planters’ Association (PA) in Colombo last week, Hulangamuwa outlined the government’s legislative agenda designed to create a stable and attractive environment for private sector growth. The SOE Restructuring Act will establish a holding company similar to Singapore’s Temasek to manage government commercial enterprises, bringing entities such as the Indian Corporation, Litro Gas, and some state banks under its purview. 

The PPP Act aims to create a legal framework to attract substantial capital for major projects while allowing the state to maintain control of assets, providing a clear mandate for new economic ventures. 

The Port City Amendment Act is intended to revitalize the Colombo Port City special economic zone by introducing new regulations to attract investments, with the expectation that the zone will see significant activity within the next six months.

Hulangamuwa assured the packed audience at the AGM that these reforms are being built on a strengthening macroeconomic foundation, stating that Sri Lanka is performing “above our plans” on key economic indicators. He highlighted that foreign reserves currently stand at US$ 6.2 billion and are on track to reach the year-end target of US$ 7 billion, despite the recent opening of Letters of Credit (LCs) for vehicle imports worth US$ 1.4 billion. 

Government revenue collection is also outperforming targets, which should reduce pressure on interest rates.

“The interest rates today at 7-8 percent are going to be welcomed by the industry,” he noted. 

(NF)