Competition Law at Sri Lanka
Here’s an overview of Competition Law in Sri Lanka:
Competition Law in Sri Lanka: Overview
Sri Lanka has a dedicated competition law framework aimed at promoting fair competition, preventing anti-competitive conduct, and protecting consumer welfare.
Key Features of Competition Law in Sri Lanka
Legal Framework:
The primary legislation is the Competition Act, No. 3 of 2003.
The Act prohibits anti-competitive agreements, abuse of dominant position, and regulates mergers and acquisitions.
Regulatory Authority:
The Office of the Fair Trading Commission (FTC) is the national competition authority responsible for enforcement and advocacy.
Scope of the Law:
Anti-competitive agreements: Cartels, price-fixing, market sharing, and collusion are prohibited.
Abuse of dominant position: Firms with substantial market power cannot engage in practices that restrict competition.
Merger control: Mergers exceeding specified turnover thresholds require notification and approval by the FTC.
Unfair trade practices: Also addressed under the Act to protect consumers.
Enforcement Powers:
The FTC can investigate, conduct hearings, issue orders, impose fines, and block or condition mergers.
Violators can face substantial financial penalties and other corrective measures.
Recent Developments:
Sri Lanka continues to strengthen enforcement capacity and promote competition culture.
The FTC actively engages in market studies and advocacy to improve competition policy.
Summary Table
| Aspect | Details |
|---|---|
| Main Law | Competition Act, No. 3 of 2003 |
| Regulatory Body | Office of the Fair Trading Commission (FTC) |
| Key Prohibitions | Cartels, abuse of dominance, merger control |
| Enforcement Tools | Investigations, fines, merger approvals, corrective orders |
Additional Notes
The Competition Act aligns with international best practices and encourages a competitive market environment.
The FTC collaborates with other regulators and stakeholders to enhance market transparency.
Public awareness and business compliance remain ongoing priorities.
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