Business
Smart measures to combat corruption urgently needed: Dr. Rohan Pethiyagoda
By Ifham Nizam
The government should adopt smarter preventative measures to combat corruption and protect public resources, urged Dr. Rohan Pethiyagoda, a well-respected authority on governance and corruption.
He stressed the importance of proactive reforms in governance and procurement systems, advocating for greater transparency and fairness in public sector dealings.
In thought-provoking comments made while delivering the prestigious S R Kottegoda Oration recently Pethiyagoda, known for his insightful critiques of governance, laid bare the complex, multifaceted nature of corruption that hampers the nation’s progress, stressing the urgent need for systemic reforms to address the issue.
He explained the deep-rooted issues of systemic corruption in Sri Lanka, particularly within the country’s infrastructure projects and regulatory frameworks.
Pethiyagoda began by examining the nature of corruption, which he argued extends far beyond bribery to include monopolistic practices, procurement irregularities and inefficiencies caused by bureaucratic mismanagement.
Pethiyagoda added: ‘A prime example is the longstanding contract between Sri Lankan Airlines and Airbus, a deal that effectively locked the national carrier into an arrangement with limited competition, notably from Boeing. Despite evidence of bribery and the subsequent four-billion-dollar fine levied by the European Union, the Sri Lankan government failed to secure any restitution from the scandal.
‘There are also the dangers posed by monopolies and regulatory malpractices. A case of corruption is the recent agreement with VFS Global—a private company handling electronic travel authorizations. There was an exorbitant fee structure in the deal. As a result, funds meant for Sri Lanka were being siphoned off overseas, further draining the nation’s resources.
Pethiyagoda also scrutinized the country’s procurement systems, particularly pointing out how tenders are often rigged through fixed specifications that favor certain companies. “In technical specifications, minor adjustments can disqualify major manufacturers, essentially ensuring that only the bribing companies win the contract, he explained.
A particularly startling example he raised was the controversial wind power deal awarded to the Adani Group of India. According to Pethiyagoda, the Sri Lankan government paid an inflated price for wind power, which would lead to an additional cost of USD 1.35 billion over 20 years, compared to a much more affordable local tender.
“The government creates regulatory barriers that fuel corruption, he added. “Take the National Medicines Regulatory Authority (NMRA), for example. Delays in approving medical equipment parts not only waste resources but cause unnecessary suffering and even deaths.”
Pethiyagoda contended that the failure to tackle corruption lies not only with individual politicians but with the country’s broken systems. He stressed that while political leadership may strive for integrity, these efforts are insufficient unless systemic reforms are introduced. “Corruption cannot be tackled with crime and punishment alone,” he said. “We need to proactively identify and stop corruption before it even occurs.”
Drawing from his own experiences, Pethiyagoda recounted a personal incident during his tenure as a youthful director of biomedical engineering at the Ministry of Health in Sri Lanka. He shared a disturbing example of how radiographers at the National Cancer Institute had misused cobalt radiation therapy machines to irradiate gemstones instead of treating patients, which led to innocent people being misled. Despite a prosecution, the case ultimately fell apart due to legal loopholes, highlighting how corruption in Sri Lanka often slips through the cracks of the legal system.
The Central Bank of Sri Lanka today (07) presented its flagship publication, the Annual Economic Review for 2024 (AER 2024), to President and Minister of Finance, Anura Kumara Disanayake, highlighting the steady progress of Sri Lanka’s economic recovery following the country’s most severe downturn in recent history.
The report was officially handed over by Dr. P. Nandalal Weerasinghe, Governor of the Central Bank, during a special ceremony held at the Presidential Secretariat.
AER 2024 comprises four main chapters: Macroeconomic Developments, Conditions of the Financial System, Review of Central Bank’s Policies and Macroeconomic Outlook.
According to the Review, the Sri Lankan economy showed significant signs of recovery in 2024, following the deep economic crisis experienced two years ago. The recovery trajectory, though challenging, has been notably faster than that of many other debt-distressed countries.
Improvements in economic activity, a partial resurgence in purchasing power and reduced uncertainty are among the key positive indicators noted in the report.
The event was attended by Dr. Nandika Sanath Kumanayake, Secretary to the President, K. M. Mahinda Siriwardena, Secretary to the Treasury, Mrs. K. M. A. N. Daulagala, Senior Deputy Governor, Dr. C. Amarasekara, Assistant Governor, Dr. (Mrs.) S. Jegajeevan, Director of Economic Research and Dr. L. R. C. Pathberiya and Additional Director of Economic Research at the Central Bank Dr. V. D. Wickramarachchi.
[PMD]
Business
IceWarp expands into Sri Lanka, fostering European innovation in collaboration with FentonsIT
IceWarp, a global leader in business communication solutions, has officially launched its cutting-edge platform in Sri Lanka, bringing European expertise in email and collaboration solutions to support the country’s evolving business landscape.
This expansion is driven by a strategic partnership with Fentons Information Technology (FIT), the Information Technology arm of Hayleys Fentons Limited.
The grand launch event held at The Kingsbury Colombo on 4th April, 2025, was graced by several distinguished guests, including Chief Guest Mohan Pandithage, Chairman and Chief Executive of Hayleys PLC.
The presence of Adam Paclt, Global CEO of IceWarp, and Pramod Sharda, CEO for India and the Middle East of IceWarp, along with their global team, highlighted the significance of this expansion. Industry experts, government officials, corporate leaders, and CIOs from the banking, financial services and insurance sectors were in attendance as well, reflecting strong local interest in IceWarp’s European expertise.
With this launch, Sri Lankan businesses now have access to an affordable, scalable and secure alternative to Microsoft 365 and Google Workspace. IceWarp’s advanced Collaboration Suite integrates a wide range of tools into a single, unified platform designed to streamline communication and boost productivity. Offering flexible hybrid deployment options and cost-efficient solution, IceWarp enables organisations to optimise their operations without compromising security or functionality.
Ceylon Energy and HJT China have successfully completed the Mahiyangana-Kappalthurei 33kV power distribution lines and the Uhana Gantry as part of Sri Lanka’s Supporting Electricity Supply Reliability Improvement Project (SESRIP). Funded by the Asian Development Bank ($42 million), SESRIP aims to expand energy access in underserved regions, including conflict-affected areas and provinces like Uva and North Central.
The project’s infrastructure spans over 270 km of 33kV lines, 13 switching gantries, and 2,372 km of low-voltage extensions.
The projects connect 35,000+ households and improve reliability for 493,000+ consumers; integrates renewables to reduce losses.
The projects’ notable components include: Mahiyangana-Bibila Line: 36 km with 147 steel towers and Kappalthurei-Sixth Mile Post Line: 14 km with 58 towers.
Ceylon Energy Chairman Madushanka Fernando hailed it as a ‘new beginning of a brighter era’, emphasising the project’s role in uplifting rural communities and driving sustainable development.
The initiative underscores Sri Lanka’s commitment to inclusive, reliable energy and climate resilience.
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