In late July 2026, the Government of Sri Lanka initiated the process of introducing the Non-Governmental Organization Registration and Supervision Bill by sharing the amended draft with the National Collective of Civil Society Organizations (CSOs) and NGOs through the National Secretariat for Non-Governmental Organizations (NGO Secretariat). A stakeholder consultation, chaired by Mr. Sampath Manthreenayake, Secretary to the Ministry of Rural Development, Social Protection and Community Empowerment, was held on 20 July 2026, following which the NGO Secretariat invited the NGO Collective to submit written observations and recommendations on the draft Bill. Nevertheless, the limited engagement with CSOs prior to drafting is problematic given the Bill’s wide application to grassroots organizations, including trade unions, alumni associations, and informal community groups.
The proposed Bill is justified by the government as a measure to strengthen compliance with the Financial Action Task Force (FATF) standards and reduce the risks of money laundering, terrorist financing, and proliferation financing. While these objectives are acknowledged, the current draft has raised significant concerns regarding overregulation, excessive executive discretion, and its potential impact on civic space.
The Bill establishes a new Competent Authority despite the existing NGO Secretariat, adopts an overly broad scope that extends to informal community groups, and lacks clarity regarding the Authority’s independence, governance, and accountability. It also grants extensive inspection powers, subjects the Authority to ministerial directions, makes registration a prerequisite for operation, requires renewal every three years, and provides no clear grounds for refusal, timelines, reasons for decisions, or appeal mechanisms. Additional concerns relate to restrictions on advocacy during pre-election periods and broad powers to suspend organizations for activities deemed inconsistent with their stated objectives.
Therefore, proceeding with the Bill in its current form risks significantly deteriorating the enabling environment for civil society in Sri Lanka by imposing extensive administrative requirements and granting broad, insufficiently constrained powers to the executive. Without clear safeguards, transparent decision-making and effective avenues for appeal, these provisions risk being used to restrict legitimate civic activity. The Government should therefore substantially revise the Bill through meaningful and inclusive consultation with CSOs to ensure that efforts to strengthen regulatory oversight do not come at the expense of civic freedoms, organizational autonomy and democratic participation.