Sunday, 19th September 2021

Expropriation Act to be repealed passed during previous government

British Asia News Network- AD

Colombo, April 14: Government is considering to repeal the Expropriation Act passed during earlier government as per this act government can takeover private companies not performing up to government’s expectations.

The Revival of Underperforming Enterprises or Underutilized Assets Act, No.43 of 2011 has been enacted in 2011 to vest the Underperforming Enterprises or Underutilized Assets with the Government and making provisions for their proper management, administration or revival and for the payment of relevant compensation.

This act was critised by credit agencies and notable businesses, as this act allows the government to appoint a competent authority which will control, administer and manage the organization or asset to guarantee its revival by reorganizing the entity.

An proposal has been made to repeal the said Act , since the Act has done much damage creating a sense of nervousness with investors of private capital entities.

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