The Sri Lankan Consumer Affairs Authority continues to face accusations that it is not proactive enough in enforcing substantive competition prohibitions, but instead focusing on the utilization of its consumer protection powers by undertaking a number of pricing investigations and other consumer protection actions. It is also notable that, apart from a handful of sector specific regulatory controls on anticompetitive mergers and acquisitions, there is still no sector neutral prohibition against anticompetitive mergers in Sri Lanka.

At this stage businesses looking to enter or expand in one of Sri Lanka's many industries dominated by strong incumbents are not able to gain a great deal of comfort from the Authority's presence in terms of ensuring a level playing field. Equally, while strong enforcement is not a significant risk at this stage, relevant prohibitions are on the statute book and the Authority is functioning and has demonstrated an ability to prosecute cases in the consumer protection sphere. In this environment, active competition compliance programs are important for those looking to escape the risk of being one of the Authority's first substantial scalps when it does find its feet in the competition arena.

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