Institutional corruption persists, particularly within sectors protected by entrenched vested interests, even under the current government, though high-level political bribery solicitation appears to have diminished, according to the U.S. statement on Sri Lanka’s investment climate.
The report, released recently, said endemic corruption and a lack of transparency in public procurement have historically inflicted significant economic losses on Sri Lanka, and these factors deter foreign direct investment, particularly in large infrastructure sectors where top global companies often remain absent.
The statement on Sri Lanka says that despite legal prohibitions, practices such as accepting unsolicited project proposals and tailoring tender specifications to favour specific companies reportedly remain common.
The government strengthened its anti-corruption framework by passing comprehensive legislation in July 2023 aimed at enhancing enforcement capabilities.
The President has publicly committed to eradicating corruption and enhancing governmental transparency. Provisions addressing conflicts of interest remain vague, and enforcement mechanisms are ineffective.
Listed companies generally have codes of conduct to prohibit bribery of public officials. However, privately owned companies – especially those involved in infrastructure projects and imports – do not generally adhere to these guidelines. Sri Lanka is a party to the United Nations Convention Against Corruption (UNCAC), according to the report.