SL to enact comprehensive competition law facilitating foreign trade

The government is evaluating the existing legal framework relating to market competition in Sri Lanka with the aim of introducing a comprehensive competition law.

The main aim is for the promotion of transparent and competitive business climate, Finance Ministry sources confirmed.

Although there were legislations relating to the concept of completion including the Fair Trading Act no1 of 1987, it has no relevance for international trade.

Therefore Sri Lankan exporters, importers and traders are frequently facing anti-competitive practices of manipulating market driven prices, a high official of the ministry said.

It is essential to create a conducive environment for these traders creating level playing field for competition in pricing and tariffs, he added.

The policy inconsistency has become an obstacle for modern international trading logistics and, industrialisation in the country.

Thus the Presidential Secretariat has stepped in to expedite the process of devising a new comprehensive competition law regime seeking assistance of the Japanese International Cooperation Agency (JICA).

A seminar was held to share the current findings of the JICA’s assessment of the legal framework relating to market competition in Sri Lanka recently.

A high level delegation from the Japan Fair Trade Commission (JFTC) joined the seminar to share their insight on the background and key aspects of the competition laws and the role of JFTC in securing a transparent and competitive business climate in Japan, from which useful lessons could be drawn for Sri Lanka.

The assessment of the existing legal provisions and measures the same against internationally accepted competition law principles was being conducted by JICA on the request of the Presidential Secretariat, JICA disclosed.

Harsha Fernando, President’s Counsel, presenting the findings of the assessment at the seminar explained that, there are both legal and regulatory provisions for promotion of competition and prevention of anti-competitive practices in as many as 37 enactments, with the purview and enforcement responsibilities distributed among both regulatory agencies as well as service providers.