[REVISION HISTORY]

Sri Lanka legislative amendments on finance and corruption

Updated 2 times since CLSTR started tracking revisions of this situation.

What changed

2026-08-28 10:24 UTC → 2026-08-31 23:53 UTC · added ~~removed~~

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, submitted by the President in his capacity as Minister of Finance, Planning, and Economic Development,~~ amendment will provide investigative and law enforcement agencies with the statutory power to initiate formal criminal investigations and ~~prosecutions against offenders.~~ 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.

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