News
Corruption stifles economic recovery – civil society groups

The ‘Civil Society Initiative on Anti-Corruption Reform for Economic Recovery,’ led by Transparency International Sri Lanka (TISL) and comprising Verité Research, Centre for Policy Alternatives (CPA), Sarvodaya Shramadana Movement, People’s Action for Free and Fair Elections (PAFFREL), and National Peace Council (NPC) yesterday said that there was an urgent need for political will and genuine action towards anti-corruption governance reforms that are essential for sustainable economic recovery.
In a statement titled ‘Anti-Corruption Governance Reforms Are Critical for Economic Recovery’ the TISL said: On this International Anti-Corruption Day, we reiterate the urgent need for political will and genuine action towards anti-corruption governance reforms that are essential for sustainable economic recovery.
We note the critical juncture the country is facing, where decisive action is expected by the citizens to spearhead the ‘system change’ that was the unified call of the unprecedented people’s movement last year. We also note the clear call by the international development partners, notably the International Monetary Fund (IMF) to initiate governance reforms that are essential to reach the economic recovery targets in the agreement. The recently published Governance Diagnostic Report of the IMF, as well as the Civil Society Governance Diagnostic Report on the Corruption Landscape of Sri Lanka underscore the imperative for comprehensive anti-corruption governance reforms, in order to combat the economic crisis rooted in weak governance and entrenched corruption.
Therefore, the ‘Civil Society Initiative on Anti-Corruption Reform for Economic Recovery,’ led by TISL and comprising Verité Research, CPA), Sarvodaya Shramadana Movement, PAFFREL, and NPC, makes an earnest call from the policymakers, as well as the citizenry to not let this unique “reform moment” slip away.
As we observe the International Anti-Corruption Day under the theme “UNCAC at 20: Uniting the World Against Corruption,” marking the 20th anniversary of the adoption of the United Nations Convention against Corruption (UNCAC), we emphasize that the governance reforms identified by the civil society and the IMF must be prioritized and implemented, if we are to recover and restore the economy.
Nadishani Perera, Executive Director of TISL, stated, “The recent landmark decision of the Supreme Court has confirmed our assertion that the economic crisis was caused by a governance failure. The court has emphasized that the crisis could have been averted if high-level decision-makers had acted in the best interest of the country, upholding the public trust that is bestowed upon policy makers who are duty bound to act as the trustees of public resources. Corruption and poor governance in Sri Lanka steal away relief and development funds and prevent the funds from reaching those that are most in need. This must be stopped at this critical time in order to uplift the lives of citizens, who are the actual casualties of this man-made crisis.”
The unfolding of the economic crisis and the people’s uprising seeking accountability and systems change demonstrated the serious breakdown of public trust towards those in governance. It is paramount for the Government to earn back the public trust if it is to successfully implement any of the economic reforms. Towards this, it is essential for the Government to demonstrate its commitment to change through concrete actions of reform and by taking actions to end the startling levels of impunity for large scale corruption and abuse of power at the top levels prevailing in the country.
Any institutions that are set up to combat corruption must consist of persons with integrity, appointed through an independent process which is respected and not undermined and those appointed should be enabled to act with independence and without fear of repercussions.
A conducive environment for civic engagement where people are able to access information and freely express their opinion including their dissent is vital for meaningful economic recovery. However, the government’s conduct of violently suppressing public expression, intimidating and harassing those who dissent, disrespecting the separation of powers between the executive, legislature and the judiciary and attempting to introduce oppressive laws that curtail these freedoms, have been extremely harmful towards any sort of civic engagement.
Therefore, we urge the President and Government to demonstrate their commitment towards transparent and accountable governance and equitable and sustainable economic recovery by going beyond mere words and promises to actual implementation of the governance reforms specified in the governance diagnostics, while protecting the Constitutionally guaranteed democratic rights and civic space.
We also call on all public representatives in Parliament to go beyond lip service and demonstrate their commitment to real system change through their actions. We request the international lenders and donors to maintain pressure towards governance reforms in order to ensure that their funds will fulfill the purposes for which they are granted. We call upon the public to demand for governance and anti-corruption reforms as a non-negotiable deliverable towards economic recovery.
Business
IMF staff team concludes visit to Sri Lanka

An International Monetary Fund (IMF) team led by Evan Papageorgiou visited Colombo from April 3 to 11, 2025. After constructive discussions in Colombo, Mr. Papageorgiou issued the following statement:
“Sri Lanka’s ambitious reform agenda supported by the IMF Extended Fund Facility (EFF) continues to deliver commendable outcomes. The post-crisis growth rebound of 5 percent in 2024 is impressive. Inflation declined considerably in recent quarters and has fallen to ‑2.6 percent at end-March 2025. Gross official reserves increased to US$6.5 billion at end-March 2025 with sizeable foreign exchange purchases by the central bank. Substantial fiscal reforms have strengthened public finances.
“The recent external shock and evolving developments are creating uncertainty for the Sri Lankan economy, which is still recovering from its own economic crisis. More time is needed to assess the impact of the global shock and how its implications for Sri Lanka can be addressed within the contours of its IMF-supported program.
“The government’s sustained commitment to program objectives is ensuring policy continuity and program implementation remains strong. Going forward, sustaining the reform momentum is critical to safeguard the hard-won gains of the program and put the economy on a path toward lasting macroeconomic stability and higher inclusive growth.
“Against increased global uncertainty, sustained revenue mobilization efforts and prudent budget execution in line with Budget 2025 are critical to preserve the limited fiscal space. Boosting tax compliance, including by reinstating an efficient and timely VAT refund mechanism, will help contribute to revenue gains without resorting to additional tax policy measures. Avoiding new tax exemptions will help reduce fiscal revenue leakages, corruption risks and build much needed fiscal buffers, including for social spending to support Sri Lanka’s most vulnerable. Restoring cost recovery in electricity pricing will help minimize fiscal risks arising from the electricity state-owned enterprise.
“The government has an important responsibility to protect the poor and vulnerable at this uncertain time. It is important to redouble efforts to improve targeting, adequacy, and coverage of social safety nets. Fiscal support needs to be well-targeted, time-bound, and within the existing budget envelope.
“While inflation remains low, continued monitoring is warranted to ensure sustained price stability and support macroeconomic stability. Against ongoing global uncertainty, it remains important to continue rebuilding external buffers through reserves accumulation.
“Discussions are ongoing, and the authorities are encouraged to continue to make progress on restoring cost-recovery electricity pricing, strengthening the tax exemptions framework, and other important structural reforms.
“The IMF team held meetings with His Excellency President and Finance Minister Anura Kumara Dissanayake, Honorable Prime Minister Dr. Harini Amarasuriya ; Honorable Labor Minister and Deputy Minister of Economic Development Prof. Anil Jayantha Fernando, Honorable Deputy Minister of Finance and Planning Dr. Harshana Suriyapperuma, Central Bank of Sri Lanka Governor Dr. P. Nandalal Weerasinghe, Secretary to the Treasury Mr. K M Mahinda Siriwardana, Senior Economic Advisor to the President Duminda Hulangamuwa, and other senior government and CBSL officials. The team also met with parliamentarians, representatives from the private sector, civil society organizations, and development partners.
“We would like to thank the authorities for the excellent collaboration during the mission. Discussions are continuing with the goal of reaching staff-level agreement in the near term to pave the way for the timely completion of the fourth review. We reaffirm our commitment to support Sri Lanka at this uncertain time.”
News
New Year dawns at the auspicious time of 03.21 a.m. tomorrow (14).

The Sinhala and Tamil New Year will dawn at the auspicious time of 03.21 a.m. tomorrow (14th Monday).
The auspicious time to light the hearth and prepare the first meal is at 0404 am on Monday (14) facing South.
The auspicious hour to commence work, perform the first transactions and partaking of the first meal is at 0644 am facing South dressed in white coloured clothes.
Latest News
PNB detect large haul of methamphetamine and heroin in local fishing trawler intercepted by Navy

Acting on credible information, the Sri Lanka Navy launched a special operation on the high seas on 11 Apr 25, resulting in the apprehension of 06 suspects along with a local multi-day fishing trawler, believed to be involved in smuggling of narcotics.
Subsequently, the intercepted trawler was brought to the Dikkowita Harbour, where a thorough inspection was carried out with the assistance of the Police Narcotic Bureau (PNB) experts, leading to the detection of approximately 77kg and 484g of heroin and 42kg and 334g of methamphetamine (Ice).
The consignment, which had been meticulously hidden in the trawler, was handed over to the PNB for onward legal action on 12 Apr.
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