What Really Broke Sri Lanka? CIABOC Chief Points to Corruption and Integrity Failures

COLOMBO (News 1st); Sri Lanka's 2022 economic crisis was driven not only by debt, economic mismanagement and financial challenges, but also by corruption and a failure of integrity, Director General of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) Ranga Dissanayake said during a discussion hosted by the International Monetary Fund (IMF).

Speaking during a panel discussion on Monday (21) with IMF Asia and Pacific Department Director Krishna Srinivasan, Dissanayake explained why Sri Lanka became the first country in Asia to request an IMF Governance Diagnostic Assessment focused on governance and corruption.

He was speaking at the IMF Legal Department's 80-year anniversary in Washington, D.C.

According to Dissanayake, Sri Lanka serves as a classic example of how governance failures can contribute to economic collapse.

He noted that Sri Lanka had once been regarded as a prosperous nation and was often compared to Singapore in the 1960s. However, by 2022, the country had experienced economic collapse and bankruptcy, leading to IMF assistance and the subsequent governance diagnostic assessment conducted in 2023.

Addressing the causes of the crisis, Dissanayake said the country's collapse could not be attributed solely to debt, economic mismanagement or financial factors.

"Not only the debts, not only the mismanagement, not only the economic reasons, but also lack of integrity and corruption," he said.

Dissanayake further noted that Sri Lanka's Supreme Court had identified corruption as one of the causes of the country's economic crisis.

He said the IMF assessment provided important guidance on strengthening integrity, reducing corruption and improving the effectiveness of anti-corruption institutions.

Discussing lessons learned in building effective anti-corruption institutions, Dissanayake highlighted the enactment of Sri Lanka's Anti-Corruption Act No. 9 of 2023, describing it as a modern and progressive law aligned with international standards.

Although Sri Lanka ratified the United Nations Convention Against Corruption in 2004, he noted that it took nearly two decades for the country to introduce comprehensive anti-corruption legislation that met international expectations.

According to Dissanayake, the new law was designed to establish a fully independent anti-corruption commission, free from government control, supported by financial independence and dedicated staff.

Reflecting on his appointment as Director General in January 2025 after two decades of service as a lawyer, magistrate and High Court judge, he described CIABOC as a unique institution with responsibilities extending beyond investigations and prosecutions to include prevention, value-based education and wider governance reforms.

He acknowledged that one of the main challenges following the enactment of the law was implementation rather than legislation itself.

Dissanayake said discussions with the IMF legal team helped resolve legal and operational issues, including challenges arising from the Public Financial Management Act, which had implications for the commission's independence.

As a result, he said, CIABOC was able to strengthen its institutional independence, appoint dedicated staff and submit its budget estimates directly to Parliament rather than through the Ministry of Finance.

The CIABOC Director General also underscored the importance of maintaining institutional independence while working closely with law enforcement agencies and regulators.

He explained that the Anti-Corruption Act provides mechanisms for cooperation with domestic and international institutions, including the Sri Lanka Police and the Financial Intelligence Unit of the Central Bank.

A significant change introduced under the 2023 law, he said, was the transfer of money laundering jurisdiction to CIABOC alongside the Police, giving the Commission authority to investigate money laundering offences and file indictments before the High Court.

Dissanayake also revealed that CIABOC had established 12 divisions covering investigations, prosecutions and other key functions under the new legal framework.

Highlighting technological reforms, he said the Commission launched an electronic assets and liabilities declaration system in 2026, enabling politicians and public officials to submit declarations digitally.

According to Dissanayake, approximately over 80,000 declarations have already been received and are currently undergoing verification.

He added that the system also allows public access and now includes beneficial ownership information, describing it as a major step forward for transparency and accountability.

He credited the reform process with strengthening anti-corruption efforts while helping establish greater internal economic discipline.

The discussion also focused on public expectations following the 2022 economic crisis.

Dissanayake said the nationwide protests that year resulted in a strong public mandate for anti-corruption reforms and asset recovery.

He noted that civil society played a major role in demanding accountability and in seeking the recovery of assets believed to have been lost through corruption over many years.

According to Dissanayake, international partners including the World Bank's Stolen Asset Recovery Initiative (StAR), the United Nations Office on Drugs and Crime (UNODC), Transparency International and the International Anti-Corruption Coordination Centre (IACCC) continue to provide technical support in tracing and recovering assets.

He emphasized that international cooperation remains critical, particularly in investigations involving corruption and cross-border asset recovery.

Looking ahead, Dissanayake identified prevention as the single most important priority for Sri Lanka's anti-corruption efforts.

He said the National Anti-Corruption Action Plan for 2025-2029 is heavily focused on prevention and integrity-building.

According to him, corruption cannot be significantly reduced without changing attitudes and strengthening integrity from an early age.

As part of that effort, CIABOC has entered into agreements with the education sector and the University Grants Commission to promote integrity and anti-corruption values from school level onwards.

"Prevention is the most appropriate step to minimise corruption. That is my priority," Dissanayake said.

His remarks come as Sri Lanka continues to pursue institutional reforms under its economic recovery programme, with anti-corruption measures increasingly viewed as a key pillar in rebuilding public confidence, strengthening governance and preventing a repeat of the country's worst economic crisis in recent history.