The Proceeds of Crime Act’s introduction of non-conviction based asset forfeiture would strengthen Lanka’s legal tools for recovering illicit assets, including those held abroad, Transparency International Sri Lanka (TISL) said in a statement.

It welcomed the passage of the Proceeds of Crime Act, which was approved by Parliament on 08 April 2025. This is a landmark development in Sri Lanka’s anti-corruption and asset recovery framework, filling a long-standing legal gap and introducing powerful tools to combat illicit enrichment and the flow of black money.

TISL commends the work of the drafting committee for navigating the complexity of this legislation, which is designed to ensure that stolen assets are recovered and redirected for public benefit.

The new law introduces mechanisms for identifying, freezing, seizing, and confiscating the proceeds of crime, including in cases where a criminal conviction may not be possible. Notably, it provides for non-conviction-based forfeiture, a shift in the burden of proof in specific proceedings, and robust channels for international cooperation in tracing assets hidden across borders.

These legal tools are crucial in addressing grand corruption, where assets are often laundered through sophisticated local and global networks. Without such mechanisms, Sri Lanka has historically struggled to recover stolen public funds.

Importantly, the law focuses on the recovery of illicit assets rather than the prosecution of offenders. This is a critical strategy to disrupt the financial rewards of corruption and weaken the foundations of kleptocracy.

TISL also draws attention to several concerns that must be addressed to ensure the Act’s successful implementation. Stronger safeguards and judicial oversight are necessary within investigation processes to prevent the misuse of powers and uphold due process. The Proceeds of Crime Management Authority (PCMA) must function with the highest standards of transparency, and board members should be adequately and fairly compensated to attract qualified professionals and reduce corruption risks. Likewise, the Victims of Crime Reparations Trust Fund must be governed with clear selection criteria, term limits, disqualification processes, and strong conflict-of-interest safeguards to maintain public trust.

In addition to implementation issues, TISL remains concerned about broader challenges in Sri Lanka’s legislative process. The development of this law highlighted continued translation errors from English to Sinhala, which risk undermining its intent and application—particularly since the Sinhala version has legal precedence. These issues reinforce the need for institutionalised mechanisms for public and expert participation from the earliest stages of lawmaking, to ensure clarity, coherence, and alignment with the public interest and international standards.

Looking ahead, TISL urges the government and implementing institutions to ensure that the Proceeds of Crime Act is applied with integrity, fairness, and transparency. This includes the responsible and open management of recovered assets, robust public oversight, and ensuring that these powerful tools are used proportionately and in line with the law’s intended focus on grand corruption and serious crime. The ultimate goal must remain clear: to ensure that corruption and crime do not pay—and that stolen wealth is returned to its rightful owners, whether individuals or the public at large.

TISL remains committed to supporting the effective implementation of this law, for which it has long advocated, and will continue to push for transparency, accountability, and public participation across every stage of Sri Lanka’s reform journey, it said.