The traders have raised concerns that the proposed company would fundamentally change the existing management structure of the economic centres, which currently operate under Trust Boards chaired by the respective District Secretaries and comprising ex-officio representatives of Government institutions and traders’ associations. They have also alleged that the proposal appears to have been made with “ulterior motives”.According to a Fundamental Rights (FR) petition filed before the Supreme Court, the Cabinet approved the proposal on 3 June 2025, following a memorandum submitted by the Trade, Commerce, Food Security and Cooperative Development Minister on 7 May 2025.The petitioners allege that the decision was taken without consulting traders’ associations, farmers, wholesale traders, shop owners and other stakeholders whose livelihoods depend on the economic centres.

They further claim that the Cabinet approved the proposal without adequately examining the problems affecting the existing centres or appointing an expert committee to investigate the issues and recommend solutions.Concerns have also been raised over proposals to issue shares in the proposed company to certain public officials, including the Treasury Secretary and the Secretaries of the Ministries responsible for Trade or Internal Trade or Market Places, Home Affairs and Agriculture.The petitioners contend that the restructuring was undertaken without giving them an opportunity to be heard, allegedly violating their constitutional rights to equality before the law and equal protection of the law under Article 12(1), and the freedom to engage in a lawful occupation under Article 14(1)(g).

They also argue that the decision undermines traders’ legitimate expectations of being consulted and participating in the governance and management of the Trust Boards.The petitioners warn that implementing the decision could cause serious and irreparable harm to traders and their associations, while adversely affecting farmers, consumers and the national agricultural supply chain.The FR application names senior Government officials, Cabinet members, the Secretary to the President, the Secretary to the Cabinet, the Registrar General of Companies and the Attorney General as respondents. The petitioners are seeking judicial intervention over the Cabinet decision and its potential implications.

The proposed company is expected to bring 15 DECs under its purview: Dambulla, Nuwara Eliya, Welisara, Veyangoda, Meegoda, Embilipitiya, Thambuttegama, Narahenpita, Keppetipola, Ratmalana, Bokundara, Kandahandiya, Piliyandala, Ampara and Kurunduwatta.