Sri Lanka's Cabinet has approved the establishment of a PPP Unit to replace the current unit within the Ministry of Finance and Mass Media.

The new agency will be independent, and have more legal, administrative and financial powers than its predecessor. It will be responsible for the selection and implementation of public-private partnership projects as well as offering guidance and advice to ministries and other government institutions in the management of these projects.

The division will also provide oversight in execution, transparency, good governance, formulation of polices and recommendations to Cabinet Committee on Economic Management.

Additionally, Thilan Wijesinghe has been appointed as the Chairman and Acting CEO of the newly established Public Private Partnership Unit.

The proposal to establish the new unit was brought by Minister of Finance and Mass Media Mangala Samaraweera with the objective of encouraging PPPs.

Prime Minister Ranil Wickremesinghe has called for more private sector led PPPs rather than PPPs which depend on Sri Lankan taxpayer money.