[CLSTR]
< Back to situations

Monitor this situation.

[SITUATION] · [QUIET] · [BUSINESS]

4 clusters · 7 sources · 27 days · First seen · Last updated

Sri Lanka legislative amendments on finance and corruption

Overview

Sri Lanka is considering several legislative amendments aimed at financial and anti-corruption oversight. In early August 2026, Transparency International Sri Lanka (TISL) warned that proposed changes to the Anti-Corruption Act could “erode key accountability mechanisms” by restricting public access to asset and liability declarations of officials and granting the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) broader discretion to redact data.

Following this, the Cabinet of Ministers granted in-principle approval to amend the Foreign Exchange Act, No. 12 of 2017, to criminalize unauthorized outward transfers of funds. This measure is intended to address gaps in the current legal framework that prevent criminal prosecutions for illegal capital flight, such as when entities remit funds for imports but fail to deliver the goods. Under existing regulations, the Central Bank of Sri Lanka is limited to imposing monetary penalties in local currency, which the government deems insufficient to deter such activities. The proposed amendment will provide investigative and law enforcement agencies with the statutory power to initiate formal criminal investigations and prosecutions.

On August 31, 2026, TISL filed a petition in the Supreme Court challenging the proposed Anti-Corruption (Amendment) Bill, arguing that the amendments introduce “policy regressions” and create loopholes. The legal challenge specifically contests provisions that would allow the Director General of CIABOC to grant immunity to accomplices without magistrate approval, potentially removing judicial oversight. TISL also objects to new exemptions for asset declarations regarding officials of certain state-linked companies and the removal of requirements to declare assets of household partners, seeking a determination that these provisions are inconsistent with the Constitution.

Entities

Transparency International Sri Lanka · Central Bank of Sri Lanka · Supreme Court of Sri Lanka · Anti-Corruption Act (Sri Lanka) · Commission to Investigate Allegations of Bribery or Corruption (CIABOC)

Timeline

  1. 11 days ago

    [POLITICS] 3 sources
    Transparency International Sri Lanka challenges anti-corruption bill

    Transparency International Sri Lanka has petitioned the Supreme Court to challenge the Anti-Corruption (Amendment) Bill, citing concerns over reduced judicial oversight and weakened asset declaration rules.

  2. 16 days ago

    [BUSINESS] 2 sources
    Sri Lanka to criminalize unauthorized foreign fund transfers

    Sri Lanka plans to criminalize unauthorized foreign fund transfers to combat financial crime and is reviewing vehicle import surcharges based on the country's foreign exchange stability.

  3. 25 days ago

    [BUSINESS] 3 sources
    Sri Lanka to criminalize unauthorized overseas fund transfers

    Sri Lanka is amending its Foreign Exchange Act to classify unauthorized overseas fund transfers as criminal offenses, allowing for prosecution rather than just monetary penalties.

  4. about 1 month ago

    [POLITICS] 3 sources
    Sri Lanka anti-corruption law amendment threatens asset declaration transparency, says Transparency International

    Transparency International Sri Lanka warns that proposed amendments to the Anti‑Corruption Act would limit public access to officials' asset declarations, weakening oversight and transparency.

Sources

asianmirror.lk · atolltimes.mv · lankabusinessonline.com · newswire.lk · ox-hugo.scripter.co · srilankabrief.org · srilankachronicle.com

This summary has been updated 2 times: see revision history