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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.
News
Elders’ home devastated by fire was a ‘house of horror’: Witnesses
Death toll rises to 12: Director remanded
Some residents were allegedly chained
Police have come under public pressure to investigate allegations of inhumane treatmenf the residents at an elders’ home in Batagoda, which was also reportedly used as a care centre for persons with special needs, following a devastating fire that has so far claimed 12 lives.
Eyewitnesses who were among the first responders told the media that several residents had been chained inside rooms at the Senehase Kedella Elders’ Home when the fire broke out on Wednesday. They claimed that rescue efforts were hindered as iron chains could not be removed, and that some residents died while being restrained.
Authorities have not yet verified these claims, and Police said investigations are continuing.
Police spokesman ASP F.U. Wootler, contacted for comment, said there were rumours to that effect, but the Police were not in a position to verify the claims until a report from the Government Analyst was received. He said eight survivors with burn injuries were being treated in hospital.
Meanwhile, the Director of the facility had been arrested and was due to be produced before the Horana Magistrate’s Court, Police said adding that he was remanded till June 11.
The death toll from the fire has risen to 12 as of Thursday morning following the recovery of additional charred remains during ongoing forensic examinations at the site. Six others sustained serious injuries and are being treated at the Horana Base Hospital.
Police said 72 residents were inside the facility at the time of the blaze. Of them, 10 died inside the building, seven were injured and hospitalised, while 51 were rescued and relocated.
Survivors were initially housed at Batagoda Junior School before being transferred with Army assistance to another branch of the same care network in Galpatha.
A magisterial inquiry was conducted on Thursday morning. Horana Magistrate Lakmini Vidanagamage visited the scene. The burnt remains were examined and removed under judicial supervision.
Separately, allegations have emerged that residents were required to pay an admission fee of Rs. 75,000, along with a monthly charge of Rs. 35,000 to the centre. Police have not commented on these claims.
The director was taken to the scene as part of ongoing investigations, while forensic experts continue examinations to determine the cause of the fire, which remains undetermined.Anguruwatota Police are conducting investigations.
By Norman Palihawadane and Nishan S Priyantha
News
CERT : AI-generated videos depicting Prez, PM lure public into financial scams
Sri Lanka CERT has issued a public warning over the circulation of artificial intelligence (AI)-generated videos falsely depicting President Anura Kumara Dissanayake, Prime Minister Harini Amarasuriya and several other prominent personalities to promote fraudulent investment schemes online.
According to complaints received by the national cyber security agency, the videos have been created using deepfake technology and are being used as part of attempts to defraud members of the public through financial scams.
The images of famous sports personalities and other public figures have also been misused in the deceptive content.
The agency has warned that similar AI-generated material has been used to spread false information relating to investment opportunities, employment offers, as well as matters concerning the country’s economy and tax policies.
According to Sri Lanka CERT, the videos are being widely shared across online platforms and frequently contain links urging viewers to make investments in return for purported profits.The agency has cautioned that these links may redirect users to fraudulent websites designed to steal personal information, financial data and money from unsuspecting victims.
Sri Lanka CERT has urged the public to exercise extreme caution when encountering such content online and advised against clicking on suspicious links or sharing personal information through unverified websites.
“The public should remain vigilant and avoid becoming victims of false information and online fraud schemes,” the agency said.
Sri Lanka CERT has also encouraged internet users to verify information through official sources before acting on any investment, employment or financial offers circulated via social media or other online platforms.
News
New tax law comes into force
Speaker Dr Jagath Wickramaratne on Wednesday endorsed the certificate on the Inland Revenue (Amendment) Bill, bringing the legislation into force as the Inland Revenue (Amendment) Act, No. 11 of 2026, Parliament sources said.
The Bill, which amends the Inland Revenue Act, No. 24 of 2017, was passed by Parliament on May 19.
The new law introduces a series of reforms aimed at modernising tax administration procedures, improving compliance and enforcement mechanisms, enhancing the accuracy of tax calculations and deductions, and strengthening transparency within the tax system.
The amendments also support broader economic policy objectives and include measures designed to reinforce anti-money laundering safeguards.Among the key provisions of the Act is the mandatory use of Taxpayer Identification Number (TIN) certificates for specified high-value financial transactions.
The legislation also introduces revisions to the calculation of taxable income, clarifies tax exemptions applicable to certain projects and business entities, and expands the scope for information disclosure to relevant authorities.
The amendments are expected to improve the efficiency of tax administration while facilitating greater accountability and regulatory oversight.With the Speaker’s endorsement of the certificate, the Inland Revenue (Amendment) Bill has now become law as the Inland Revenue (Amendment) Act, No. 11 of 2026.
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