Sri Lanka’s Cabinet approved the Protecting of the State from Terrorism (PSTA) Bill early last year as a replacement for the Prevention of Terrorism (Temporary Provisions) Act, No. 48 of 1979. However, the new legislation has yet to be formally published in the government gazette.

In December 2025, the Ministry of Justice released a draft of the proposed anti-terrorism law, which has drawn criticism from international human rights organizations. Critics argue that the bill largely retains the provisions of the existing Prevention of Terrorism Act (PTA) and, in some cases, expands state powers in ways that undermine civil liberties. They contend that certain aspects of the draft fail to align with internationally recognized standards for anti-terrorism legislation.

The government faces a series of legal and diplomatic challenges in the coming weeks and months. Domestically, the Supreme Court is expected to rule soon on Article 22A, which relates to the detention of terrorism suspects, while the High Court is scheduled to deliver a verdict on cases connected to the 2019 Easter Sunday terrorist attacks.

Internationally, Sri Lanka must address concerns raised by the United Nations Human Rights Council (UNHRC) during an upcoming session in Geneva. The government is also preparing to apply for an extension of the Generalized System of Preferences Plus (GSP Plus) trade facility, which is set to expire at the end of 2026. Observers note that how Sri Lanka manages issues related to Article 22A, prisoner welfare, and compliance with human rights standards will be critical to maintaining access to trade benefits such as GSP Plus.

Officials acknowledge the complex array of domestic legal matters and international obligations that the government needs to navigate in order to sustain economic partnerships and address ongoing security concerns.