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Sri Lanka Proposes Amendments to Anti-Corruption Law

Sri Lanka has published a draft law providing for new financial penalties for corruption and changes to asset declaration rules.

The relevant Bill No.51/2026, which amends the Anti-Corruption Act, No. 9 of 2023, is expected to be introduced in Parliament shortly.

One of the main amendments concerns liability for the corrupt use of public office. The Act currently provides for the punishment of a public official who uses their powers, office, or official information to confer an undue benefit or cause undue harm.

Under the bill, upon conviction for this offence, the court will be required, in addition to the existing fine, to impose a further penalty of not less than three times the value of any property acquired or converted using the proceeds of corruption. Where the corrupt conduct has caused a loss to the Government, the penalty will instead correspond to the amount of loss determined by the court.

In addition, any intangible benefit obtained as a result of corruption and still enjoyed by a public official or another person will cease to be lawful from the date of conviction. Such benefits may include appointments, privileges, and other non-property advantages.

The bill also changes the rules on bail. A special procedure is proposed where a person is suspected or accused of:

  • soliciting, accepting, or offering a bribe of not less than 100,000 rupees;
  • committing a corruption offence that caused a loss of not less than 500,000 rupees to the Government;
  • obtaining, for themselves or another person, a benefit, favour, or advantage worth not less than 500,000 rupees.

In such cases, bail may be granted only by the High Court and only in exceptional circumstances. The amount of the loss or benefit must be confirmed by the Director-General of the Commission to Investigate Allegations of Bribery or Corruption (hereinafter, the Commission).

Certain procedural powers of the anti-corruption authority will also be expanded. In particular, with the permission of the relevant court, the Director-General of the Commission will be able to withdraw charges filed not only in the High Court but also in a Magistrate’s Court. The Commission will also be able to authorise the Director-General not to charge or prosecute an accomplice who makes a full and truthful disclosure of all the circumstances of the offence known to them.

A separate set of amendments concerns the regulation of conflicts of interest. At present, the detection of indications of illicit enrichment during the verification of an assets and liabilities declaration constitutes a direct ground for initiating an investigation. Under the bill, the detection of indications of a conflict of interest will also constitute such a ground. The Department of the Registrar of Companies will also be expressly included among the sources of information accessible to the authority responsible for verifying declarations.

A significant part of the bill concerns declarations of assets and liabilities. Staff officers of statutory bodies are proposed to be added to the categories of persons required to submit declarations.

At the same time, the requirements applicable to certain categories of declarants will change. The declaration requirement will apply only to executives of trade unions with more than 1,000 registered members. Executives and certain employees of companies with state participation will be required to submit declarations only where the Government or a public corporation holds at least 50% of the shares; the current threshold is 25%.

For financial institutions, the proposed list will include chairmen, directors, and staff officers instead of all employees performing managerial or supervisory functions. In media companies, the requirement will apply to proprietors, chairmen, and directors instead of proprietors, editors, and members of editorial staff.

Declarations will also no longer include information on the assets and liabilities of another person who lives with the declarant and shares a household with them. The statement of legal effect accompanying the bill explains that this amendment is intended to safeguard the privacy of such a person.

The bill also proposes restrictions on the use of published redacted declarations. A person who obtains such a declaration will be permitted to use it only for submission to an officer or institution specified in the Act. Using a declaration in a manner that violates the declarant’s privacy will be punishable by a fine of up to 100,000 rupees, imprisonment for up to one year, or both.

Tags
Conflict of interest
Asset disclosure
Sanctions
Criminal prosecution
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