The Ceylon Chamber of Commerce has expressed serious reservations about the Government’s Draft Public-Private Partnership (PPP) Bill, warning that several critical issues must be addressed before the legislation can be effective or credible.
While acknowledging the Government’s effort to introduce a legislative framework for PPPs, the Chamber highlighted significant shortcomings that risk undermining investor confidence and public trust.
Major concerns include the lack of guaranteed independence for the proposed National Agency for PPPs, weak safeguards against unsolicited proposals, and inadequate fiscal transparency due to unclear reporting requirements.
The Chamber also pointed to the absence of robust dispute resolution mechanisms and stressed the need for stronger conflict-of-interest provisions, qualified appointments subject to Parliamentary oversight, and clearer legal standing to avoid conflicts with existing laws.
The proposed Bill also falls short of embedding necessary environmental, social, and governance (ESG) standards, raising questions about the Government’s commitment to sustainable development.
Despite some positive features such as mandated value-for-money assessments and public disclosure requirements, the Chamber warned that the legislation, as it stands, risks perpetuating opaque practices that have historically plagued Sri Lanka’s infrastructure projects.
Amid a challenging fiscal environment, the Government’s push for PPPs is seen as essential for attracting private capital and closing the country’s infrastructure gap. However, the Chamber’s critique suggests that without meaningful reform, the new legislation could fail to deliver on these promises.
The Ceylon Chamber urged the Government to take private sector feedback seriously and implement comprehensive reforms before the Bill proceeds further, cautioning that investor scepticism will persist unless the framework is truly independent, transparent, and aligned with international best practices.
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