Prime Minister to propose scrapping ‘expropriation’ laws
View(s):Prime Minister Ranil Wickremesinghe is to propose scrapping controversial expropriation laws and some changes to land ownership laws during a special statement in Parliament on Thursday on the Government’s mid-term strategy.
“These are both elements that deter FDI,” a government source told the Business Times.
Under the 2011 Revival of Underperforming Enterprises and Underutilised Assets Act, 37 formerly state-owned institutions were acquired drawing criticism across the board.
The source added that when the government moves to acquire private property, bad signals go out. “The reasons may be justified, but the very intention of using state power to deprive legitimate owners of their property encourages and activates the worst elements. And this will not attract FDI.” Similarly, he said the Land (Restrictions on Alienation) Act restricting land ownership by foreigners, foreign companies and companies registered in Sri Lanka also deter FDI.