Get it Right

Local experts on policy and regulation are calling for a system to better understand effects of regulations before they are adopted. Local experts on policy and regulation are calling for a system to better understand effects of regulations before they are adopted. “Sri Lanka needs to invest in Regulatory Impact Assessment – RIA – to minimise adverse impacts of unsuitable regulations,” says Malathy Knight John, Head of Public Enterprise Reform, Competition and Regulatory Policy Research, Institute of Policy Studies (IPS).

Experiences with existing laws show that enforcing laws without understanding their impact, can do more damage than good.

An IPS report – Regulatory Impact Assessment – Regulatory
Impact Assessment – A Tool for Better Regulatory Governance in Sri Lanka?
– points to the Economic Service Charge (ESC) as one such example.

According to the law, persons and partnerships are liable to pay one percent ESC on “liable turnover.”

The Finance Act defines ‘turnover’ as the “total amount receivable, wheth