New PPP Agency Revives Old Blueprint amid Credit Dispute

Sri Lanka’s long-dormant Public–Private Partnership (PPP) programme is once again under the spotlight, with the newly reactivated National Agency for Public–Private Partnerships (NAPP) claiming that 67 projects are currently in the pipeline across power, ports, urban development, and transport. However, an investigative review reveals that the new administration’s claims of revival rest largely on work initiated by the previous government in 2024.

At a recent forum co-hosted by the Indian High Commission and the Ceylon Chamber of Commerce, NAPP Chief Executive Sulakshana Jayawardena announced that a long-awaited PPP law designed to provide Sri Lanka’s partnership framework with a proper legal foundation—is now with the Legal Draftsman’s Department. After incorporating feedback from the Chamber and other stakeholders, it is awaiting Attorney General’s approval before being presented to Parliament.

Jayawardena said the agency has conducted multiple awareness programmes for key state entities such as the Urban Development Authority, Water Board, and Ceylon Electricity Board, to build institutional readiness for future PPPs.

While the new government portrays these developments as fresh initiatives, Cabinet records and prior media reports indicate that the PPP Bill and the proposal to establish NAPP were both approved by the previous government in July 2024. The drafting of the law began months before the change of administration, and the Legal Draftsman’s office had already started work on the bill at that time.

Since assuming office a year ago, the current administration has essentially continued and refined this groundwork rather than starting anew. It can therefore claim credit for sustaining the process and moving the draft toward legislative completion but not for originating or drafting the law itself.

Sri Lanka’s PPP framework has a chequered past. The first wave of PPPs in the 1990s attracted more than US $2 billion in private investment, mainly in power and telecoms, but momentum faded after the original PPP unit under the Board of Investment was disbanded in the mid-2000s. The absence of a dedicated law and institutional continuity led to project delays and governance gaps, leaving most recent PPPs limited to the energy sector.

The new NAPP thus inherits a mixed legacy. With 67 projects under review, officials promise better oversight and cross-sectoral diversification. Yet, analysts warn that without a clear legal framework, transparent tendering, and policy stability, Sri Lanka risks repeating earlier failures.For now, the rebranded agency signals intent, not transformation. The PPP law’s true test will come when it moves beyond drafting tables and proves that this revival is more than a recycled promise under a new name.