JICA supports promotion of transparent and competitive business climate in Sri Lanka through introduction of strong Competition Laws

On 1^st February 2024, 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. 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 by JICA is being conducted on the request of the Presidential Secretariat. The assessment principally evaluates the existing legal provisions and measures the same against internationally accepted competition law principles. The assessment findings are expected to provide a foundation for policy dialogue on this aspect vital for fostering innovation and productivity which would benefit both the customers and the suppliers.

Mr. Harsha Fernando, President’s Counsel, presenting the findings of the assessment explained that while Sri Lanka does not have a comprehensive competition law regime, 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.

The delegation from JFTC comprising of Deputy Secretary General Ms. Tanaka Kumiko, Deputy Director Ms. Sakuma Yukiko and Chief Investigator Ms. Matsuo Akiko, shared insightful lessons and practices from Japan. Japan’s post-World War II context catalysed measures leading to break-up of the 'zaibatsu', giant corporate groups, and thereby opening opportunities for new entrants to the market and promoting competition. The Anti-Monopoly Act of Japan introduced a comprehensive legal framework to prevent anti-competitive actions and promote competition. The JFTC is the law enforcement authority on the provisions of the Anti-Monopoly Act, and also conducts advocacy activities to enhance public awareness and support towards measures fostering competition.

It was observed that Japan also faced many challenges in the initial stages of introducing competition policy and regime, and Japan was able to overcome these by introducing robust legislation, establishing strong institutions and equal application of the rule of law in enforcement.

JICA expects that the findings of the assessment, coupled with the lessons from Japan would provide a strong foundation for the Sri Lankan stakeholders in determining the policy direction for Sri Lanka.