Apr 14, Colombo: Sri Lanka is considering to repeal the Expropriation Act passed during previous regime which allows the government to takeover private enterprises not performing up to government's expectations.
The Revival of Underperforming Enterprises or Underutilized Assets Act, No.43 of 2011 has been enacted in 2011 to vest the Underperforming Enterprises or Underutilized Assets with the Government and making provisions for their proper management, administration or revival and for the payment of relevant compensation.
The Act, which had come under criticism from credit agencies and leading business chambers, allows the government to appoint a competent authority which will control, administer and manage the enterprise or asset to ensure its revival by restructuring or entering into a management contract.
However, since the Act has done much damage creating a sense of uncertainty in the minds of the investors of private capital and affects adversely on the country's ease of doing business, a proposal has been made to repeal the said Act by the Budget speech 2018.
The cabinet at its last week meeting granted approval to the proposal made by Lakshman Kiriella, the Minister of Public Enterprise, Kandyan Heritage and Kandy Development, to present the draft Bill prepared to repeal the Expropriation Act, in Parliament for approval.