ECONOMYNEXT – Sri Lanka does not have a comprehensive regime to stop ant-competitive behaviour but there are provisions to promote competition scattered among 37 pieces of legislation, according to an assessment by the Japan International Cooperation Agency.
Harsha Fernando, President’s Counsel, had presented some of the findings at a recent forum had said Sri Lanka does not have a comprehensive competition law regime.
There were 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.
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 the agency’s role in securing a transparent and competitive business climate in Japan.
Deputy Secretary General Tanaka Kumiko, Deputy Director Sakuma Yukiko and Chief Investigator Matsuo Akiko, explained the practices from Japan.
Japan had broken up the ‘zaibatsu’, giant corporate groups, after World War II, and opened opportunities for new entrants to the market and promoted 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.
JICA said in 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.
Meanwhile critics have said in Sri Lanka government itself has imposed high import duties, feeding corporate greed and monopolies of ‘domestic producers’ allowing them to exploit poor consumers with higher than world prices.
Due to high import duties and so-called para-tariffs Sri Lanka is no longer an ‘open economy’ it once was economists are now saying. (Colombo/Feb16/2024)