The future of key legislative reforms and proposed amendments in Sri Lanka remains uncertain, as the new Government has yet to decide whether to proceed with the previously drafted bills or to revise them entirely.
With several critical bills having already passed through various stages in Parliament, there is increasing concern that the ongoing political transition could delay or alter their course.
Among the most anticipated pieces of legislation is the Penal Code (Amendment) Bill, which has already passed three readings in Parliament – on 5 March, 23 July, and 21 August. Other bills such as the Companies (Amendment) Bill, introduced on 3 September, and the Anti-Terrorism Bill, which saw its first reading on 10 January, are now stuck in limbo. The Medical (Amendment) Bill also had its first reading on 2 July and the Protection of Occupants Bill was read on 21 August.
Additionally, the Mediation Boards (Amendment) and Safeguard Measures (Amendment) Bills, presented on 23 July, and the Online Safety (Amendment) Bill, which was read on 8 August, are similarly stalled. The Gender Equality Bill, introduced on 9 May, and the Immigration Bill, read on 20 June, also remain in a holding pattern. The Animal Welfare Bill, which has been in the works since 24 March 2022, had its second reading on 11 July 2024, but its future now hangs in the balance.
Ministry awaiting direction
Meanwhile, as learnt by The Sunday Morning, the Ministry of Justice and National Integration, which oversees the development of such legislation, has yet to receive concrete instructions from the new Government on whether to proceed with these bills in their current form or if further revisions are necessary.
Ministry of Justice and National Integration Legal Division Additional Secretary Piyumanthi Peiris confirmed that no guidance had been issued regarding the bills’ progression.
She explained that the ministry was currently in a holding pattern, awaiting the new Government’s decision on whether to proceed with the proposed laws or make amendments.
“At this stage, we have not received any communication about the new Government’s stance on these bills. The ministry is awaiting clear instructions on whether to proceed with these bills as they are or if changes are needed,” Peiris said.
MCRA Bill
Perhaps the most controversial among the pending bills is the proposed Microfinance and Credit Regulatory Authority (MCRA) Bill, which seeks to address longstanding concerns in Sri Lanka’s microfinance sector.
The existing Microfinance Act of 2016 has been criticised for its ineffectiveness, as it covers only a fraction of the more than 15,000 microfinance lenders operating across the country. Only four of these institutions are registered with the Central Bank of Sri Lanka (CBSL), leaving the vast majority unregulated.
Civil society groups, however, have voiced opposition, particularly Transparency International Sri Lanka (TISL), which filed a petition with the Supreme Court. The petition raised concerns about the bill’s provisions, which it believes would grant excessive discretionary powers to the finance minister.
Former Deputy Governor of the CBSL Dr. W.A. Wijewardena said: “There is a risk that without more stringent oversight, the microfinance sector could continue to operate without adequate regulation. The Government should take a long-term view and address the gaps in the current system rather than pass a bill that will not solve the underlying issues.”
VSSO Bill
Another piece of legislation that remains uncertain is the Voluntary Social Service Organisations (VSSO) (Registration and Supervision) (Amendment) Bill. This bill, which aims to establish clearer oversight mechanisms for Non-Governmental Organisations (NGOs) operating in Sri Lanka, is also stalled.
National Secretariat for NGOs (NSNGO) Director General Sanjeewa Wimalagunarathna confirmed that while the bill had been drafted, it could not progress until it received Cabinet approval.
“The bill is ready, but without Cabinet approval, there is no way to move forward. These organisations play an important role and we need to ensure they are properly regulated,” he said.
Wimalagunarathna further noted that the delay left significant gaps in the oversight of NGOs, which often dealt with large sums of money and worked on critical issues such as health, education, and human rights.
Concerns over delays in legal reform
As per the Legal Draftsman’s Department, the formulation of bills follows a comprehensive process. Bills begin with a written request from the relevant ministry to the Legal Draftsman, who prepares the initial draft. The draft is then reviewed and revised by the ministry, and once the Attorney General’s office approves the final version, it is submitted to the Cabinet.
Only after Cabinet approval is it published in the gazette, debated in Parliament, and passed through multiple readings and amendments.
However, this lengthy process has been further complicated by the political transition, which has resulted in some bills getting stuck at various stages.
Sri Lankan Lawyers’ Alliance President Sampath Perera stressed that the delays in legal reform were not just an inconvenience but a serious issue that impacted the functioning of the justice system.
“These delays in legal reforms not only hold up progress but also place undue pressure on the Judiciary and law enforcement. We are in a situation where the system is overwhelmed by cases that could have been resolved with faster legislative action,” he said.
Perera also warned that the constant interruption of legislative progress due to political changes could ultimately undermine the stability of the legal framework.
“If reform is constantly interrupted by political changes, we lose the opportunity to create a legal framework that serves the people and not just the interests of political elites,” he added.
He also stressed the importance of striking a balance between revising existing laws and ensuring that urgent reforms were passed without further delay.
However, attempts made by The Sunday Morning to contact new Minister of Justice and National Integration Harshana Nanayakkara were futile.