The government has proposed the establishment of a National Investment Protection Council, a semi-judicial body comprising retired judges, to mediate, investigate, and resolve disputes between the state and investors before any legal action is taken by aggrieved parties.
This proposal is included in the upcoming Investment Protection Act, which is expected to be presented in Parliament within the next two months. The objective of the Act is to safeguard investments and enterprises owned by both local and foreign investors from arbitrary nationalisation.
The proposed National Investment Protection Council will serve as a platform for dispute resolution and will operate on a case-by-case basis, similar to a tribunal.
The Act aims to boost investor confidence and attract higher levels of domestic and foreign investment. It also seeks to improve Sri Lanka’s position in international investment rankings and ease-of-doing-business indices, reduce investor disputes and arbitral claims, enhance policy credibility and predictability, and align the country’s investment framework with international standards and best practices.
A senior Treasury official noted that although Sri Lanka received an investment inflow of US$1 billion this year, the amount must be increased by eliminating obstacles such as policy gaps that often lead to legal disputes.
He added that the draft bill will soon be forwarded to the Legal Draftsman and subsequently to the Attorney General for approval.
