61
priority reform actions defined to streamline the business environment
15+
ministries and agencies aligned under a whole-of-government reform framework
The Task
Designing a regulatory reform roadmap that moves from intent to execution.
Businesses in Sri Lanka faced complex entry procedures, fragmented licensing across national and subnational agencies, weak digital service delivery, and inconsistent enforcement. These were not isolated friction points. They were systemic constraints contributing to low SME formalisation, subdued FDI inflows, and weak integration into global value chains.
The mandate: design the National Regulatory Reform Action Plan as a core policy action under a broader Trade, Investment, and Industry Development programme, streamlining the business environment for SMEs while aligning reforms across economic zones, trade facilitation, and industrial development priorities.
The Approach
6 phases. An evidence-led approach built for delivery, not just diagnosis.
Phase 01
Policy-anchored diagnostics
Comprehensive regulatory mapping across laws, procedures, inspections, and approvals affecting businesses through the full lifecycle: business entry, land and construction permits, labour and environmental compliance, taxation, IP, and sector-specific licensing, explicitly aligned with national policy priorities.
Phase 02
Business lifecycle lens
Regulatory bottlenecks analysed across critical stages from incorporation and trade licensing through operations, compliance, and exit, revealing cross-cutting challenges including lack of service delivery standards, limited interoperability between systems, and weak transparency and grievance mechanisms.
Phase 03
Stakeholder consultations
Inputs gathered through interviews, workshops, and a private sector survey, ensuring reform priorities reflected both implementation realities within government and day-to-day pain points faced by businesses and investors.
Phase 04
International benchmarking
Global good practices across digital business registers, single-window licensing systems, risk-based inspections, regulatory impact assessments, and reform oversight councils used to shape pragmatic, context-appropriate solutions rather than aspirational blueprints.
Phase 05
Phased, actionable reforms
61 targeted reform actions consolidated and sequenced across short, medium, and long-term horizons. Over three-quarters prioritise business entry, licensing, and compliance simplification, supported by digitalisation, process reengineering, legal amendments, and institutional capacity building.
Phase 06
Validation and ownership building
A national validation workshop held with senior policymakers, implementing agencies, and private sector representatives to test findings, build consensus, and establish shared ownership of the reform agenda.
The Analysis
Sri Lanka's regulatory burden was not caused by any single law or agency. It was the cumulative product of a system that had never been coordinated end to end.
The business lifecycle mapping revealed a consistent pattern: regulatory complexity was highest at the intersection of agencies, where processes were duplicated, accountability was unclear, and digital systems did not talk to each other. No single reform could fix this. Only a coordinated, sequenced approach across 15+ ministries and agencies could create the conditions for a meaningful change.
Three cross-cutting themes emerged as the highest-leverage areas: standardising service delivery, enabling digital government-to-business interactions, and establishing a reform governance body with real oversight authority. These are enabling environment reforms in the truest sense: they do not target specific sectors or procedures but transform the conditions under which all business regulation operates.
The Outcome
A national reform action plan that gives Sri Lanka's regulatory system clarity, coordination, and accountability for the first time.
61 priority reform actions
Sequenced across short, medium, and long-term horizons, with over three-quarters targeting business entry, licensing, and compliance simplification, supported by digitalisation and institutional capacity building.
Whole-of-government coordination
A prioritised, time-bound action plan coordinated across 15+ ministries and agencies, establishing clear ownership of what needs to change, who is responsible, and when.
Digital-first service delivery
A strong pipeline of reforms to digitise government-to-business services, enable real-time tracking, and reduce physical interactions and discretionary delays.
National Regulatory Reform Council
A proposed governance body providing high-level strategic oversight, inter-agency coordination, monitoring, and public reporting, anchoring reform continuity beyond political cycles.
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