The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) is demonstrating a significantly expanded reach and increased activity in its fight against corruption, with notable progress in addressing private sector malpractices.
Recent statistics from the CIABOC’s progress report for 1 January to 31 May 2025 illustrate its intensified efforts. The commission received a total of 2,221 complaints (including 240 complaints remaining from 2024) during this period, with 224 complaints directed for investigation.
During the first five months of 2025, the CIABOC conducted 44 raids, with 25 deemed effective, leading to the arrest of 31 suspects. Notably, among those arrested in raids, six ‘civil persons’ were identified.
On the prosecution front, the CIABOC filed 42 cases from January to May, involving 45 accused individuals. Among the accused, three ‘civil persons’ accused were listed, indicating active legal proceedings against individuals outside traditional public service roles.
The report also highlights convictions during this period. From 1 January to 31 May, there were 29 concluded cases. The convictions included four ‘civil persons,’ demonstrating tangible results in holding private individuals accountable for corrupt practices.
While the CIABOC continues to address corruption across various public institutions including the Police, the Ministry of Education, and divisional secretariats, the increasing number of ‘civil persons’ in arrest, prosecution, and conviction records signifies a dedicated focus on broadening the scope of anti-corruption efforts into the private sector.
The impact of these changes is already evident.
In a landmark move, the CIABOC conducted its first raid on a private sector bribery incident on 26 January 2024. This operation led to the arrest of an accountant cum manager (Human Resources) of a private hotel in Dambulla, who was allegedly soliciting sexual gratification in exchange for employment benefits. This case underscores the CIABOC’s newly operationalised powers in the private sector.
Despite these strides, Transparency International Sri Lanka (TISL) Deputy Executive Director Maheshi Herat cautioned that “private sector corruption cases remain significantly underreported”. She added: “This gap does not imply the absence of corruption but rather reflects a lack of reporting and awareness.”
A new era of accountability
The transformative Anti-Corruption Act No.9 of 2023 (ACA) has significantly expanded the CIABOC’s mandate and capabilities, signalling a more comprehensive approach to combating corruption across the nation.
Sri Lanka signed and ratified the United Nations Convention Against Corruption (UNCAC) in 2004, committing to align national laws and institutions with global standards. Reflecting this commitment, TISL on 26 June released an independent ‘Civil Society Parallel Report on Sri Lanka’s Implementation of the UNCAC,’ assessing Sri Lanka’s progress in fulfilling its UNCAC commitments, with a focus on Chapter II (Preventive Measures) and Chapter V (Asset Recovery).
A high-ranking CIABOC official, who chose to remain anonymous, emphasised the critical importance of this expanded focus.
The official stated: “The severity of private sector corruption cannot be overstated. While public sector corruption often grabs headlines, private sector corruption can be just as insidious, if not more so, in its impact on the economy and society. It distorts fair competition, stifles innovation, discourages foreign investment, and ultimately leads to higher costs for consumers and a less equitable distribution of wealth.
“It can manifest in various forms, including bribery for contracts, fraudulent accounting, insider trading, illicit payments to secure licences or permits, and embezzlement. Such activities erode public trust, undermine the rule of law, and can even facilitate organised crime and money laundering.”
The anonymous CIABOC official also elaborated on the significance of the ACA: “The Anti-Corruption Act No.9 of 2023 marks a significant step forward in Sri Lanka’s fight against corruption. Crucially, it broadens the scope to more effectively address private sector corruption.
“Historically, the focus might have been predominantly on public officials. However, this new act explicitly includes offences committed by individuals in the private sector. It introduces modern provisions aligned with international best practices, such as those found in the UNCAC, to which Sri Lanka is a signatory. This means that acts like bribery of a private individual, or a private individual offering a bribe, are now more clearly and robustly criminalised.”
The ‘Civil Society Parallel Report on Sri Lanka’s Implementation of the UNCAC’ also acknowledges the enactment of the Anti-Corruption Act No.9 of 2023 and the development of the National Anti-Corruption Action Plan (2025-2029) as important steps forward.
The ACA has broadened the CIABOC’s mandate to include private-sector entities, companies, and corporations. This enables investigations into a wider array of offences such as private sector bribery, money laundering, and trading in influence. The CIABOC is actively recruiting experts like chartered accountants and forensic auditors to bolster its investigative capabilities, and has been designated the central authority for asset and liabilities declarations in Sri Lanka.
Furthermore, the commission now possesses enhanced powers, including the ability to seize bank accounts and impound passports, and is strategically focused on prevention through public outreach and legal framework review.
Regarding how the CIABOC is dealing with private sector corruption under this new act, the official highlighted a clear mandate for a more proactive and comprehensive approach. The official explained that “the act empowers the CIABOC with enhanced investigative powers, including the ability to trace illicit assets more effectively, access financial information, and cooperate internationally”.
For private sector corruption, this means the CIABOC can investigate and prosecute individuals and entities, as the act allows the CIABOC to investigate allegations against individuals and organisations operating in the private sector for offences like offering or accepting bribes or engaging in other corrupt practices as defined by the new law.
Beyond just enforcement, the act also emphasises preventative measures, meaning the CIABOC is likely to engage in more awareness campaigns targeting the private sector, encouraging ethical business practices and promoting internal controls within companies to prevent corruption.
Furthermore, the fight against private sector corruption often requires collaboration with other regulatory bodies, financial intelligence units, and even international counterparts. The new act facilitates such cooperation, enabling the CIABOC to work more effectively with other agencies to uncover and prosecute complex private sector corruption cases.
A key aspect of the new act is the enhanced focus on asset recovery, which is particularly relevant in private sector corruption cases where ill-gotten gains can be substantial. The CIABOC will now have stronger tools to trace, freeze, and confiscate assets acquired through corrupt means in the private sector.
The official concluded: “In essence, the Anti-Corruption Act provides the CIABOC with the legal teeth necessary to address private sector corruption with greater efficacy. The success will, of course, depend on robust implementation, adequate resourcing for the CIABOC, and continued political will to enforce the law without fear or favour. It’s a critical battle, as a clean and transparent private sector is fundamental to Sri Lanka’s economic prosperity and global competitiveness.”
Unpacking the pervasiveness of private sector corruption
Herat underscored the pervasive nature of private sector corruption: “Private sector corruption in Sri Lanka can be observed in both the formal and informal economies. It is often normalised in day-to-day business operations, ranging from bribery and facilitation payments to conflicts of interest and procurement fraud.”
She cited TISL’s 2024 ‘Corruption Risk Mapping Research’ (CRMR) report, which revealed frequent corruption in both private-to-public and private-to-private transactions, enabled by weak internal controls, limited transparency, and insufficient regulatory enforcement.
Beyond overt practices like bribery, kickbacks, and bid-rigging, Herat pointed to less visible but equally damaging forms of corruption, including “conflicts of interest, false invoicing and tax evasion, misuse of insider information, environmental violations overlooked through bribery, corporate espionage, sexual exploitation, money laundering, nepotism, and embezzlement as a form of bribery”.
She warned: “These kinds of hidden corrupt practices undermine fair competition in the market, inflate costs, harm communities, and erode trust in both private businesses and public institutions, making comprehensive reform essential.”
Herat further explained the far-reaching economic consequences of private sector corruption: “Private sector corruption carries economic consequences that go far beyond immediate financial losses. It distorts the functioning of the market, undermines operational efficiency, and introduces significant unpredictability.”
Herat added: “Corruption discourages both domestic and foreign investors who fear legal, reputational, and financial risks, slowing capital inflows and innovation. It also pushes honest businesses out of the market, stifles competition, and limits job creation, especially Small and Medium-sized Enterprises (SMEs) in the country.”
The National Anti-Corruption Action Plan (2025-2029) acknowledges the crucial role of the private sector in combating corruption, underscoring its importance for addressing governance and economic challenges.
Despite the acknowledgment of the ACA as an important step forward, the ‘Civil Society Parallel Report on Sri Lanka’s Implementation of the UNCAC’ highlights that “institutional weaknesses, such as a lack of resources, ineffective enforcement, and the absence of a mechanism for meaningful public participation continue to undermine these reforms”.
The report’s key findings indicate weak enforcement of regulations, lack of structural independence and institutional capacity, limited inter-agency coordination on complex corruption and money laundering investigations, and low compliance with proactive disclosure requirements by public authorities under the Right to Information Act.
To address the ‘supply side’ of corruption from the private sector, Herat outlined critical systemic changes. These include “enhancement of beneficial ownership transparency” to dismantle complex ownership structures that facilitate illicit activities, and mandating corporate compliance frameworks with anti-bribery policies, whistleblower protections, and risk assessments.
TISL’s engagement with export-oriented firms suggests that companies with such systems report fewer bribery demands and stronger investor confidence. Other vital changes involve digitising procurement and licensing, strengthening regulatory bodies, and criminalising private-to-private bribery, a gap identified in TISL’s CRMR report.
The ‘Civil Society Parallel Report on Sri Lanka’s Implementation of the UNCAC’ outlines recommendations to develop and streamline anti-corruption mechanisms, strengthen institutional oversight and accountability, and improve transparency and public participation.
Herat also stressed the pivotal role of strong corporate governance and collective action in fostering integrity: “Robust governance frameworks, anchored in transparency, accountability, and ethical leadership, ensure companies implement effective internal controls, risk management, and compliance mechanisms that deter corrupt practices.”
She highlighted the success of TISL’s Business Integrity Club (BIC), demonstrating that “when companies collaborate to share best practices, establish common anti-corruption standards, and engage with regulators, the private sector becomes a proactive partner in reducing corruption risks”.
Herat urged: “Corruption impacts entire economies, affecting individuals, employees, consumers, citizens, and workers; therefore, stakeholders across all sectors must be vigilant and report corrupt practices. Effective anti-corruption efforts require active participation from everyone. In this fight, the private sector remains a crucial stakeholder. Only through collective accountability can Sri Lanka meaningfully address systemic corruption and strengthen governance.”