Sri Lanka plans to introduce its long-awaited Public-Private Partnership (PPP) Act in the third quarter of this year, providing a dedicated legal framework for implementing infrastructure projects through public-private partnerships.

Speaking at the Research Intelligence Unit (RIU) Infracon conference, Board of Investment (BOI) Director General Sulakshana Jayawardena said the government is in the final stages of introducing the necessary legal provisions for PPP projects.

He noted that Sri Lanka currently lacks a comprehensive legal framework to regulate public-private partnerships, making the new legislation a key reform to facilitate future infrastructure investments.

The PPP Act had initially been expected to be introduced in the first quarter of the year. In November 2025, while serving as Chief Executive Officer of the National Agency for Public-Private Partnership (NAPPP), Jayawardena had announced that the draft legislation was scheduled for implementation during the first quarter.

Under the proposed law, Sri Lanka will establish a uniform legal framework for regulating PPP contracts, replace existing project identification and implementation procedures, require compliance with the Public Finance Management Act No. 44 of 2024 and national procurement guidelines, and mandate comprehensive value-for-money and feasibility assessments before projects are approved under the PPP model.

Meanwhile, BOI Executive Director Priyanka Samaraweera said the investment promotion agency has already identified several projects suitable for PPP investment.

She said the BOI has earmarked opportunities within CHEC Port City Colombo, as well as plans to develop four techno parks in Kurunegala, Galle, Digana and Nuwara Eliya through the PPP model.

According to Samaraweera, the Asian Development Bank (ADB) has assisted in preparing concession agreements for these projects.

She also noted that the new PPP framework will align with the incentive structure available under the Strategic Development Projects (SDP) Act, including enhanced capital allowance incentives aimed at attracting investors.