The companies listed in the Colombo Stock Exchange with 50% or more foreign shareholding were prohibited to purchase lands in Sri Lanka by the Land (Restrictions on Alienation) Act, No.38 of 2014 and the prohibition such imposed was removed by the amendment carried out to the said Act in 2018.

However, although provisions have been set apart for the land transactions done after 2018‑04-01, no such provisions have been provided for the acquisitions carried out prior to that date.

Accordingly, the proposal made by the finance minister, Mangala Samaraweera, to draft a Bill for removing the prohibition imposed under Act, No.38 of 2014, was approved by the Cabinet.