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.

Pursuant to Section 5 of the Right to Information Act, where a public authority requests access to information—including trade secrets protected under the Intellectual Property Act—such a request shall not be refused if the disclosure is warranted by an overriding public interest.

Sri Lanka currently lacks a comprehensive legal framework dedicated to the robust protection of trade secrets. Nonetheless, certain limited provisions address aspects of this issue. The principal legislative instrument governing matters related to unfair competition and the protection of undisclosed information, including trade secrets, is the Intellectual Property Act, No. 36 of 2003. This Act affords statutory protection to individuals and entities seeking legal redress against the unauthorised disclosure, acquisition, or utilisation of confidential information. In addition to statutory remedies, common law avenues remain accessible for the enforcement of rights in such cases. However, the existing legal regime does not provide for the formal registration of trade secrets.

Under Section 17.10 of the Telecommunications Act, as amended in 2024, the Commission shall have the authority to issue directions to any operator to whom a licence has been issued, requiring the sharing of any infrastructure owned or used by such operator with another operator specified by the Commission. The Act’s definition of infrastructure includes passive infrastructure.
Section 7 of the Telecommunications Infrastructure Sharing Regulations released in 2024 states that these Regulations establish an infrastructure sharing regime that enables the sharing of applicable telecommunications infrastructure among the requesting operators, sharing operators, and owning operators.

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 in the presence of limited local capacity or competition, as well as in cases involving complex procurements 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 are offered in competition 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 Manual clarifies that domestic preference for goods is granted based on local value addition, rather than the nationality of the bidder or manufacturer. Specifically, to qualify, the goods must contain at least 30% local content in the EXW (ex-works) price—comprising local labour, raw materials, or components—as defined in Section 5.15 of the Manual. Bidders must be registered under the Companies Act No. 7 of 2007 and are required to submit an affidavit and certified audited financial statements demonstrating the local value addition. The applicable margin of preference is 20% for contracts funded by the Government of Sri Lanka, while for contracts financed by Foreign Funded Agencies, the margin is determined in accordance with the relevant loan or credit agreement. The preference is implemented by adding the specified percentage to the evaluated bid price of non-qualifying bidders for comparison purposes only; the final contract award price remains unchanged.

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.

Sri Lanka is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA); however, it has held observer status since April 2023.

Foreign investment in Sri Lanka is governed by the Foreign Exchange Act. The Foreign Exchange Regulations No. 2 of 2021, issued under this Act, specify the types of investments that may be undertaken by foreigners. There are no limitations on foreign ownership in sectors relevant to digital trade. Section A.8 of Part I of the Schedule to the Regulations restricts foreign ownership in mass communications to 40% ownership, however the term "mass communications" is not defined.

Pursuant to Section 71 of the Intellectual Property Act, where an applicant for the grant of a patent has neither an ordinary residence nor a principal place of business within Sri Lanka, such applicant must be represented by an agent domiciled in Sri Lanka. The name and address of the agent must be included in the application, which shall also be accompanied by a power of attorney duly executed in favour of the agent by the applicant.

It is reported that a shortage of personnel at the National Intellectual Property Office (NIPO) has led to a significant backlog in the processing of patent applications. This staffing inadequacy is reported as the principal factor contributing to delays in application processing.