On 22nd April 2026, the Centre for Policy Alternatives (CPA) filed a Petition in the Supreme Court of Sri Lanka challenging the Bill titled “Financial Transactions Reporting (Amendment) Act”, which was published in the Gazette on 17th March 2026 and placed on the Order Paper of Parliament on 09th April 2026.
CPA argued that several provisions of the Bill, including Clauses 22, 24, 18, 21, 26, 34, 35, 14(3), 39, and Clauses 9, 11, 12, 13, 15 and 16, are inconsistent with Articles 3, 4, 12, 13, 14(1)(g), 76 and 105 of the Constitution of Sri Lanka. CPA further submitted that the said provisions are arbitrary, vague and overbroad and that they confer excessive powers on authorities including the Financial Intelligence Unit [FIU].
CPA also highlighted that whilst the FIU has been given such broad and vague powers, the bill place no checks and balances on the FIU to ensure that it acts in a manner that furthers the objectives of the bill and which is consistent with the provisions of the constitution. Accordingly, CPA sought orders from the Supreme Court determining that the Bill, in whole or in part, cannot be enacted into law unless it was approved by a two-thirds majority in Parliament and, where required, by the People at a Referendum.
The matter was taken up by the Supreme Court on 29th April 2026
The Petition filed by CPA in respect of the Financial Transactions Reporting (Amendment) Bill can be viewed here.
The written submissions filed by CPA in respect of the Financial Transactions Reporting (Amendment) Bill can be viewed here.