Post-Crisis Governance Reforms
Description
In response to a request from the Government of Sri Lanka, an International Monetary Fund (IMF) mission undertook a governance diagnostic assessment from March 9 to March 31, 2023. The IMF Governance Diagnostic Assessment (GDA) identified several critical governance and corruption issues in Sri Lanka.
A key concern is the implementation of anti-corruption and governance reforms. While the Anti-Corruption Act (ACA) has improved the legal environment, significant operational challenges remain. The absence of a functional system for asset declarations from public officials hinders transparency, and the selection of CIABOC commissioners is not merit-based, reducing its effectiveness. Limited information-sharing between institutions weakens anti-corruption efforts, and there is a lack of clear conflict-of-interest standards for public officials. Additionally, civil society oversight is increasingly restricted, further reducing transparency.
The GDA presents 89 recommendations in total addressing weak governance structures and corruption risks, out of which 16 are categorized as priority recommendations.
In the most recent IMF review agreement signed in June 2024, the government converted these 16 priority recommendations into actions points for a Government Action Plan. This plan was published by the government on 29th February 2024, and the government is required to carry out quarterly performance reviews and publish and annually update the action plan.
What has been done
- TISL led the Civil Society Governance Diagnostic Report on Anti-Corruption with five partner organisations with over 250 key informants and individuals from diverse sectors and communities contributing.
- It presents a set of recommendations targeting root causes of corruption and governance weaknesses.
- The report was launched on 13th September 2023 with participation from policymakers, IMF, international partners, public officials, diplomats, and civil society actors.
- It serves as a tool to guide reform and support economic recovery efforts grounded in transparency and accountability.
What can be done
- Based on the report’s findings, the government should implement comprehensive reforms to rebuild public institutions, strengthen their independence, and insulate them from political and private influence.
- Public officials and policymakers must act on the report’s recommendations to close loopholes that allow manipulation of procurement, misuse of state-owned enterprises, interference in appointments, and abuse of public funds.
- Civil society organizations could use the report as an advocacy tool to engage decision-makers, mobilize public pressure, and demand the implementation of proposed governance reforms.
- The public must stay engaged, informed, and vocal in demanding transparency, accountability, and inclusion in policy decisions, especially as the report highlights how the burden of reform has been unfairly placed on citizens.
- International actors and development partners should support reform efforts by using the report’s findings to guide their engagement and to apply pressure where political will is lacking.
Links
Download the full Civil Society Governance Diagnostic Report on the Anti-Corruption Landscape of Sri Lanka via https://www.tisrilanka.org/civil-society-governance-diagnostic-report-on-sri-lanka-2023/
First-ever Civil Society Governance Diagnostic Report on Sri Lanka debuts, Daily FT, 14 September 2023. Available at: First ever Civil Society Governance Diagnostic Report on Sri Lanka debuts | Daily FT
International Monetary Fund. (2023). Sri Lanka Technical Assistance Report; Governance Diagnostic Assessment (IMF Country Report No. 23/340) https://www.imf.org/en/Publications/CR/Issues/2023/09/29/Sri-Lanka-Technical-Assistance-Report-Governance-Diagnostic-Assessment-539804?utm_source=chatgpt.com