By Asoka S. Seneviratne –

Prof. Asoka.S. Seneviratne

“You don’t necessarily need atomic bombs to destroy a nation. Politicians who value their pockets over citizens’ lives always do that daily.” ― Israelmore Ayivor, Leaders’ Ladder

I wrote the following article for Colombo Telegraph on 25 September 2024: “The Change Started, But It Will Not Be Ending.” I referred to system change, one of the cornerstones of the AKD/NPP government. Along with the above, eliminating bribery, corruption, fraud, waste, and recovering stolen assets are central to election promises. When the AKD/NPP government came into power with the promise to punish the criminals and recover stolen assets, many talked about it sarcastically and cynically. Indeed, it was a massive challenge because of the previous regimes that had treated corruption and fraud as their right rather than their legitimate commitment to eliminate them. In short, corruption and fraud were deep-rooted. Among many, Mr. 10% in the MR family is a good example. Given the above, the government was determined, insightful, and decisive to eliminate bribery and corruption. This article explains how the government has addressed and resolved the issue of dealing with bribery and corruption, and recovery of stolen assets, in a speedy and result-oriented manner, based on the Proceeds of Crime Act (POCA) of April 2025 and the National Anti-Corruption Action Plan (NACAP) of April 2025.

Long-standing legal gaps with the Anti-Corruption Drive

Bribery, corruption, fraud, and waste were mounting in all government institutions, and authorities received complaints (i.e., well over 4000 complaints). However, the verdict of conviction was low. In short, it was a plague for government institutions, but only expressing concern existed, so it did not help at all. Given the above, it has been stated “the existing legislation including the Penal Code, Code of Criminal Procedure Act, Offences Against Public Property Act, Convention on the Suppression of Terrorist Financing Act, Prevention of Money Laundering Act, Financial Transactions Reporting Act and the Anti-Corruption Act need to be supplemented by new legislation to provide an efficacious legislative framework for (i) the effective identifying, (ii) tracing, (iii) detecting, (iv) investigating, (v) restraining, (vi) seizure, (vii) preserving, (viii) protecting, (ix) managing, (x) judicial freezing, (xi) forfeiting and (xii) returning proceeds of crime to those who are legitimately entitled to such property.” In short, the anti-corruption tools, such as the Commission to Investigate Allegations of Bribery or Corruption Act No. 19 of 1994 (CIABOC) and Sri Lanka’s Money Laundering Act of 2006 (Prevention of Money Laundering Act, No. 5 of 2006) provided the legal framework. However, they were not effective and result-oriented, as conviction has been very low; it may not compensate for the overall resources committed to generate the expected outcome. So, criminals roam free because the nature and extent of the crimes are done in deep secrecy and sophisticated local and global networks that cannot be unearthed. As a result, criminals openly challenged the government or authorities to go ahead and get the allegedly stolen assets. Another aspect was that it took ages after lengthy investigations from the initial prosecution stage to the legal conviction. Indeed, it was a massive struggle because the legal framework often encountered mounting barriers such as missing files, organizing and managing witnesses, and the lethargic attitude of prosecutors. Indeed, getting a conviction consumes not only time, but also considerable energy and scarce resources. It also indicated that the legal system itself may not accommodate, OR a paradoxical or contradictory situation in law where a party cannot fulfill a legal requirement due to a constraint within the same legal system, or criminal conviction may not be possible. In essence, the solution to a problem is hindered by the problem itself, creating a seemingly unsolvable dilemma. In short, there was a massive legal vacuum based on the 12 elements indicated above. It should be mentioned that the IMF bailout (IMF Country Report No. 231/115) highly emphasized strengthening Sri Lanka’s governance and anti-corruption framework. Given the above, the AKD/NPP government is determined to work in a result-oriented manner based on a concrete foundation or legal framework that cannot be defeated and that criminals cannot escape. Along with the above,  the AKD/NPP government has worked on the required documents over the last six months, while the opposition has sarcastically and repeatedly called for the government’s failure to catch the thieves.

Innovative and controversial POCA

The parliament approved the Proceeds of Crime Act (POCA) on 08 April 2025. As stated above, POCA is complementary to the existing anti-corruption laws and tools indicated above. It is innovative and revolutionary because, among many, the act paves the way to establish the Proceeds of Crime Management Authority to realize the objectives (i.e, disincentivizes the committing of unlawful activities to benefit from the proceeds of such prohibited activities, give effect to Sri Lanka’s obligations under the United Nations Convention Against Corruption, the United Nations Convention Against Transnational Organized Crime and international standards and best practices about anti-money laundering and countering the financing of terrorist activities) and responsibilities of the act. Before this act, a verdict of criminal conviction was a massive struggle, so I indicated the reasons or causes. POCA’s approach is different because it is based on the fundamental, “We’re not saying you’re guilty. We’re saying prove you’re not.” According to the Transparency International Sri Lanka (TISL), POCA introduces non-conviction-based assets forfeiture and strengthens Sri Lanka’s legal framework with international standards such as the Criminal Proceeds (Recovery) Act 2009 (CPRA 2009) in New Zealand. CPRA allows for the forfeiture of property derived from criminal activity, both directly and indirectly. It also deals with the forfeiture of instruments of crime when a conviction has been entered. CPRA strengthened asset recovery efforts and addressed serious and organized crime. Furthermore, TISL emphasizes that “the law shifts the burden of proof, enabling more effective recovery of stolen wealth, and the law focuses on asset recovery rather than the prosecution of offenders. This critical strategy disrupts corruption’s financial rewards and weakens the kleptocracy’s foundation.”

Given the highly technical nature of POCA, I want to quote two observations from legal experts or published sources that support the aim of this article. First, it is Overdue Reckoning – Sri Lanka has suffered for too long from a type of corruption hidden in velvet gloves. It’s not violent or loud, but it is devastating. The Proceeds of Crime Act is an overdue reckoning. It’s imperfect, yes. Possibly unconstitutional in parts, yes. But it’s also bold, necessary, and for once, immediately impactful.

There will be court battles. There will be scandals. But for now, the country is watching. And if you can’t explain your sudden wealth? Start explaining. Or start packing.

The second observation is that “This Act is highly technical; however, given the scope of the subject matter, this was necessary, and the experts have done an admirable job of trying their best to demystify some of the concepts. There are several innovative measures in the Act, compared with relevant laws in a few other jurisdictions. It will require considerable time and resources to make the legislation fully operational with trained Judges and officers. Integrity has to be in the genetic makeup of those entrusted with the wide-ranging statutory powers. The legal profession must extend its fullest cooperation to make this legislation successfully implemented rather than viewing it as a means of a new ‘gold mine’.”

National Anti-Corruption Action Plan-NACAP (2025-2029)

The Commission to Investigate Allegations of Bribery and Corruption (CIABOC) officially launched NACAP on 9 April 2025, when the parliament approved POCA on 08 April 2025. Overall, the government’s anti-corruption commitment is the foundation of NACAP and POCA. NACAP is a strategic initiative to reaffirm the country’s commitment to strengthening governance, enhancing transparency, and reinforcing the rule of law. Anti-Corruption Act No. 09 of 2023 is a significant milestone in the country’s fight against corruption. This is in line with the IMF bailout I made reference above.

As indicated by UNDP, “NACAP focuses on fostering a Whole-of-Government and Whole-of-Society approach, emphasizing the need for inclusive and strategic action to address corruption’s far-reaching effects on economic stability and public trust. Key Focus Areas of the National Action Plan include (i) strengthening national legal and policy frameworks to combat bribery and corruption (ii) enhancing inter-agency cooperation to improve coordination among key anti-corruption institutions (iii) improving the quality and efficiency of investigations and prosecutions of financial crimes; (iv) Implementing preventive measures, (v) institutional strengthening, education, (vi) legal reforms across all sectors; and (vii) encouraging public engagement in promoting integrity and accountability”. In short, POCA and NACAP are two sides of the same coin, reinforcing each other as the 12 elements mentioned under POCA and the seven (7) measures of NACAP go in the same direction, combating bribery and corruption.

Two critical points regarding NACAP. First, the success and lessons learned from the previous 2019-2023 action plan have been the foundation for NACAP. Second, the exceptional leadership of CIABOC. Accordingly, Director General of CIABOC, Mr. R.S.A. Dissanayake, said, “Combating corruption requires more than just punitive measures. It is a deeply embedded cultural issue that demands a comprehensive shift in values, beginning with instilling integrity from early childhood. Accountability must be coupled with robust prevention mechanisms and support for witnesses who come forward with allegations. As part of our commitment to systemic reform, we establish an Internal Affairs Unit (IAU) within government institutions to ensure transparency and proactive oversight.” The above goes well with the Ambassador of Japan to Sri Lanka stated “Transparency and good governance are fundamental pillars for sustainable economic development. Eliminating corruption is indispensable for Sri Lanka in attracting foreign investment and achieving long-term growth. The NAP’s effective implementation and continuous follow-up are essential to the success.  UNDP stated that “the successful implementation of this Action Plan will require a collective effort from the government, civil society, private sector, and the public. As Sri Lanka strives to improve its global standing in anti-corruption measures, this initiative marks a significant step toward restoring public trust and ensuring a fair and just governance system for future generations”. It should be noted that observation two (2) I made of POCA is similar to the emphasis that operational aspects of NACAP to generate the expected outcome.

The utmost concern of President Anura Kumara Dissanayake is profound. He stated, “bribery and corruption have proliferated, undermining the integrity and values of the country’s state institutions. Over the past six months of the present government, no section of the public service has been allowed to collapse. If officials continue to resist change, the government will proceed to remove and replace them after May. Furthermore, he stated that “bribery and corruption have caused the nation to fall behind for decades in the eyes of the world. So, enforcing the law against these crimes is not an act of political revenge but a profound human responsibility. Finally, President Anura Kumara Disanayake solemnly pledged that the responsibility of eradicating bribery and corruption will not be passed on to the next generation but will be resolved within this generation itself, under the leadership of the present government.

Warning by the DG of CIABOC

Compared with six months ago, AKD/NPP government is well-armed now to fight against mounting bribery and corruption based on POCA and NACAP. Usually, when the suspected individuals are faced with investigation or prosecution, it is considered political victimization. We often hear this from the MR family, particularly from Namal Rajapaksa. Given the above, the DG of CIABOC, Mr. Ranga Dissanayake states that the abuse of the term ‘political victimization’ will no longer be tolerated, and those who misuse the term face the strict legal action. He has requested, “I sincerely ask political leaders who issue statements to the media to kindly refer to the Anti-Corruption Act No. 9 of 2023, which you have endorsed. Please refrain from making certain statements without a proper understanding….. This law has been enacted independently of any prior connections or influences. I have been in this position since the beginning of this year. The Bribery Commission currently has 31 legal officers, and there is no capacity to recruit additional staff at this time….If anyone is going to claim political victimization, let them find evidence and prove it. Otherwise, the powers granted by this law will be used against those who make false claims.”

Recently, former president Ranil Wicremesinghe (RW) has been summoned by CIABOC. This is to provide a statement regarding an ongoing investigation under the Anti-Corruption Act regarding  Chamara Sampath Dassanayake. The investigation is related to a complaint that Dassanayake engaged in corrupt practices by withdrawing a fixed deposit from the National Savings Bank before its maturity in 2016. CIABOC noted that RW is believed to be relevant to the investigation, as indicated by his recent media statement. CIABOC observed that RW may have been involved in the events under investigation. Regarding the summons, RW has expressed his dismay about the speed at which CIABOC works. It is indeed good that RW has understood the difference between the speed of AKD and RW, which is in the right direction to generate the expected outcome, along with what AKD stated “I will not pass on the responsibility of eradicating bribery and corruption to the next generation, but will be resolved within this generation itself, under the leadership of the present government”. It is justice at the speed of AKD that dismayed RW.

Conclusion

Transparency and good governance are fundamental pillars for sustainable economic development.  Eliminating corruption and bribery is indispensable for Sri Lanka in attracting foreign investment and achieving long-term growth. The purpose of POCA and NACAP is to fast-track the AKD/NPP government’s utmost determination to eliminate bribery, corruption, fraud, waste, and recover stolen assets, which are central to election promises. Bribery and corruption have caused the nation to fall behind for decades in the eyes of the world. So, enforcing the law against bribery and corruption is not an act of political revenge but a profound human responsibility. President Anura Kumara Dissanayake solemnly pledged that the responsibility of eradicating bribery and corruption will not be passed on to the next generation but will be resolved within this generation itself, under the leadership of the present government. It is justice at the speed of AKD that dismayed RW.

*The writer, among many, worked as the Special Advisor to the Office of the President of Namibia (2006-2012) and was a Senior Consultant with UNDP for 20 years. He was a Senior Economist with the Central Bank of Sri Lanka (1972-1993)  asoka.seneviratne@gmail.com