From 1956 to 1977, the Government of Sri Lanka Nationalised key sectors of the economy, driven by socialist ideology. These include print media, transport, education, plantations, banking, and industry; shaping Sri LankaâÂÂs post-colonial economic model and state structure.
Prime Minister S. W. R. D. Bandaranaike's Mahajana Eksath Peramuna initiated nationalisation, having voted in to power in 1956 on a platform of Sinhala nationalism and economic reform. Private Motor omnibus companies were nationalised in 1958 and the Ceylon Transport Board (CTB) was established to develop rural transport and eliminate private monopolies.
Private schools were nationalised under the Assisted Schools and Training Colleges (Special Provisions) Act No. 5 of 1960, passed by Sirimavo BandaranaikeâÂÂs Sri Lanka Freedom Party government, by taking over private schools receiving state funding. With the takeover, religious instruction was curtailed and the education standardized under the Department of Education.
The largest bank in the island, the Bank of Ceylon was nationalized and the PeopleâÂÂs Bank was established to function as the two state banks to assist in national development The petroleum sector was nationalised establishing the Ceylon Petroleum Corporation in 1961 and expropriated the properties belonging to Shell, Esso and Caltex. Colombo Harbour was nationalized in 1958, followed by the Galle Harbour in 1964 and the Trincomalee Harbour in 1967.
The Sirimavo Bandaranaike second term as head of the United Front government carried out extensive nationalisation with the supported by the Lanka Sama Samaja Party and the Communist Party of Sri Lanka, implemented a socialist-oriented agenda, with the aim of achieving economic self-sufficiency and reduce dependence on foreign investment and imports. However, many state-owned enterprises became inefficient, overstaffed, and politicised.
The United Front government introduced the Land Reform Law of 1972 imposed a 50-acre ceiling on private land ownership. Over one million acres of landâÂÂincluding foreign-owned tea, rubber, and coconut plantationsâÂÂwere expropriated and redistributed through the Land Reform Commission.
In 1964, Bandaranaike's SLFP-led coalition attempted to nationalised the countryâÂÂs largest newspaper group, Associated Newspapers of Ceylon Limited (ANCL), commonly known as the "Lake House", triggering strong opposition from both the United National Party and elements within the ruling coalition. On 3 December 1964, 13 members of the SLFP, led by C. P. de Silva, crossed over and voted with the opposition against the press takeover bill. As a result, the government was defeated in Parliament by one vote, forcing Bandaranaike to dissolve Parliament and call early elections. The incident marked the fall of the first Bandaranaike administration and was one of the earliest examples of press nationalisation becoming a flashpoint for political instability in post-independence Sri Lanka.
In her second term, Bandaranaike's United Front government passed the "Associated Newspapers of Ceylon Limited (Special Provisions) Law No. 28 of 1973" taking over Lake House on the claim that to prevent media monopolies and ensure that information served the national interest. It brought NCL newspapersâÂÂincluding the Daily News, Silumina, and Dinaminaâ under state control. Critics argued that the nationalisation led to the erosion of editorial independence and turned major publications into government propaganda tools. Journalistic dissent was curtailed, and media became a platform for advancing the United FrontâÂÂs political messaging.