Pursuant to Section 11 of the Competition Rules, in instances where the telecommunications market is determined to lack effective competition, the Telecommunications Regulatory Commission of Sri Lanka (TRCSL) is mandated to identify entities possessing significant market power. Upon such identification, the Commission shall impose appropriate regulatory obligations on these entities to remedy the identified deficiencies in market competitiveness. In addition, the Commission will assess, on a case-by-case basis, the necessity of implementing accounting and functional separation measures, taking into account the specific circumstances and characteristics of each case.

The licensing of the telecommunications sector is regulated under Part II of the Sri Lanka Telecommunications Act, No. 25 of 1991, as last amended in July 2024. The Telecommunications Regulatory Commission of Sri Lanka (TRCSL) considers applications on a case-by-case basis, taking into account the market dynamics, competition and other sectoral factors. No new telecom licenses have been issued in the last 10 years. It is reported that TRCSL has a documented history of failing to be transparent in its recommendations on the issuance of licences to telecommunications providers.

Sri Lanka has appended the World Trade Organization (WTO) Telecom Reference Paper to its schedule of commitments.

Sri Lanka possesses a national telecommunications regulatory body, namely the Telecommunications Regulatory Commission of Sri Lanka (TRCSL). Nevertheless, concerns have been raised regarding the extent of its institutional independence from governmental influence. Reports indicate a persistent pattern of governmental interference in the Commission’s decision-making processes. In addition, since the Ministry of Technology's organisational restructuring in October 2022, the TRCSL has operated under the purview of this Ministry.

Sri Lanka has entered into an agreement that entails binding commitments to permit the cross-border transfer of data. Art. 9.9 of the "Free Trade Agreement between the Democratic Socialist Republic of Sri Lanka and the Republic of Singapore" stipulates that each party shall allow the transfer of information by electronic means, including personal data, across borders when such transfers are necessary for the conduct of business by a covered person.

Sri Lanka is a party to the Patent Cooperation Treaty (PCT).

Sri Lanka maintains a well-defined framework of copyright exceptions, grounded in the principle of fair use, which permits the lawful utilisation of copyrighted material without prior authorisation. These provisions are codified in Sections 11 and 12 of the Intellectual Property Act.

Reports indicate that music and software piracy is prevalent in Sri Lanka. International firms operating within the recording, software, and film industries assert that insufficient protection and enforcement of intellectual property rights significantly undermine their commercial interests in the country.

Sri Lanka has not adopted the World Intellectual Property Organization (WIPO) Copyright Treaty.

Sri Lanka has not adopted the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty.

Sri Lanka is not a signatory of the 1996 World Trade Organization (WTO) Information Technology Agreement (ITA) nor the 2015 expansion (ITA II).

Section 3.1.1 of the 2024 Procurement Guidelines on Goods, Works, and Non-Consulting Services, provides for a preference towards domestic procurement. In fact, International Competitive Bidding (ICB) is required only when the capacity of domestic contractors, suppliers, or service providers is limited (regardless of contract value), or when the applicable agreement with a Foreign Funding Agency explicitly mandates the use of ICB procedures. The 2024 Public Procurement Manual confirms that ICB is the required procurement method only when local capacity or competition is limited, or when complex procurements are undertaken for which the necessary technology or expertise is not available domestically. Notably, while the previous regime (as outlined in the 2006 Procurement Guidelines and Manual) established a monetary threshold of LKR 300 million (approx. USD 1 million) for the use of ICB, this threshold is no longer retained under the regulations.

Under Section 7.7.1 of the 2024 Procurement Guidelines, domestic preference may be applied in procurement processes conducted under either International Competitive Bidding (ICB) or National Competitive Bidding (NCB). This preference aims to promote national construction and manufacturing industries and may be granted when domestic contractors and/or locally manufactured or locally value-added goods and information systems compete with foreign contractors and imported goods. The Guidelines establish the overarching entitlement and conditions under which preference can be considered, but refer to the Procurement Manual for the operational criteria and procedures.
Section 7.7.1 of the Procurement Manual 2024 provides a margin of preference for domestically manufactured goods, including information systems products, where this preference is expressly stated in the bidding documents. To qualify, the goods must contain at least 30% local content in the ex-works price, consisting of local labour, raw materials, or components, as defined in Section 5.15 of the Manual. The bidder must be registered under the Companies Act No. 7 of 2007 and must submit an affidavit together with certified audited financial statements demonstrating the required level of local value addition. For contracts funded by the Government of Sri Lanka, the applicable margin of preference is 20%. For contracts financed by foreign funding agencies, the applicable margin is determined by the relevant loan or credit agreement. The preference is applied solely for bid evaluation purposes by adding the relevant percentage to the evaluated price of non-qualifying bids, and it does not affect the final contract price. The Manual does not establish an equivalent margin of preference for services generally.

There is no public procurement law in Sri Lanka, and all government procurement is conducted in accordance with established guidelines and manuals. It is reported that the absence of a dedicated procurement law creates ambiguity within the legal framework and has contributed to elevated levels of political involvement in the selection of procurement awardees, inadequate contract management, limited transparency, and insufficient oversight of procurement processes and outcomes.
Foreign stakeholders have also noted that opaque procurement practices and the uneven enforcement of anti-corruption measures may distort competition in public tenders, creating disadvantages for firms committed to high compliance standards.