Economic Transformation Act 2024 · As enacted · Part II
39. Expropriation
Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk
Official translationFrom Department of Government Printing, unchanged
No investment shall be expropriated or nationalized or no measures shall be taken having equivalent effect of nationalization or expropriation (hereinafter referred to as “expropriation”) except in the public interest-
on a non-discriminatory basis;
on the principle of proportionality;
in accordance with due process of law; and
accompanied by expeditious payment of adequate and effective compensation.
In the case of expropriation-
compensation shall amount to fair market value of the investment expropriated on the day before the expropriation or impending expropriation takes place or became publicly known, whichever is earlier, and shall not reflect any change in value occurring because the intended expropriation had become publicly known earlier. Valuation criteria shall be on the basis of going concern value, asset value including declared tax value of tangible property, and other criteria, as appropriate, to determine fair market value;
if the market value cannot be ascertained, the compensation shall be determined in taking into account all relevant factors and circumstances, such as the capital invested, the nature and duration of the investment, replacement and book value, in accordance with fair market value as per international standard of valuation;
compensation shall be paid without delay, be effectively realizable and freely transferable.
Compensation shall be paid within six months from the date of expropriation. Until the time compensation is paid, the investment can continue to operate.
An investor affected by an expropriation shall have the right to prompt review of its case, including the valuation of its investment and the payment of compensation in accordance with the provisions of this section.
Any non-discriminatory measures designed and applied to protect legitimate public welfare objectives, such as health, safety and the environment, shall not constitute expropriation or nationalisation, except in the circumstance when the impact of a measure or series of measures is so severe in light of its purpose that it appears manifestly excessive.
In case of expropriations under the Land Acquisition
Act (Chapter 450), the payment of compensation shall be in accordance with the provisions of that Act.