By The Pulseline News Desk
The Government has gazetted the proposed Public-Private Partnerships (PPP) Bill, seeking to establish a dedicated national agency and introduce a comprehensive legal framework to facilitate private-sector participation in public infrastructure and development projects.
The proposed legislation, titled the Public-Private Partnerships Bill, provides for the establishment of a National Agency for Public-Private Partnerships to promote, coordinate and facilitate collaboration between government institutions and private-sector investors.
The gazette notification follows Cabinet approval granted on October 19 for the publication of the Bill and its subsequent submission to Parliament.
The initiative dates back to June 2, 2025, when the Cabinet initially approved the introduction of legislation to establish a National Agency for Public-Private Partnerships.
Following that decision, the Legal Draftsman prepared the Bill, which was subsequently cleared by the Attorney General before being submitted to the Cabinet for approval to be gazetted.
The proposal was submitted by President Anura Kumara Dissanayake in his capacity as Minister of Finance, Planning and Economic Development.
The proposed framework is intended to provide an institutional mechanism for developing and implementing PPP projects while addressing longstanding challenges relating to institutional coordination, transparency, procurement procedures and regulatory requirements.
The National Agency is expected to play a central role in identifying potential partnership opportunities, facilitating project development and coordinating between public institutions and private investors.
The legislation also seeks to bring PPP projects within the broader public investment management framework established under the Public Financial Management Act, ensuring that such investments are subject to appropriate fiscal oversight and project appraisal procedures.
A key component of the proposed legislation is the introduction of transparent and competitive procedures for selecting private-sector partners.
Procurement activities under the framework are expected to be aligned with the relevant guidelines issued by the National Procurement Commission, with the objective of strengthening accountability and ensuring that private-sector participation follows established public procurement standards.
The proposed legislation comes as Sri Lanka seeks to mobilise additional investment for infrastructure and development projects while operating within fiscal constraints and managing public debt.
Public-private partnerships offer an alternative financing and implementation mechanism through which private investors can participate in projects traditionally undertaken by the Government, potentially reducing the immediate burden on public finances.
However, the effectiveness of the proposed framework will depend on the transparency of project selection, the allocation of financial and operational risks, the protection of public interests and the Government’s ability to monitor long-term contractual obligations.
The Bill will now have to be presented to Parliament for consideration and approval before the proposed institutional and legal framework can be implemented.
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