Harsha: Second tranche of IMF bailout to Lanka delayed because of Govts’ failure to tackle rampant fraud and corruption

Colombo District SJB MP Dr. Harsha de Silva, underscores that the government’s inaction in combating fraud and corruption has contributed to the delay in receiving the second tranche of financial assistance from the International Monetary Fund (IMF).

Tabling an IMF report titled ‘Governance Diagnostic Assessment,’ in Parliament on Wednesday, Dr. Silva said corruption rampant within various state agencies in Sri Lanka, extending from the highest echelons to the lowest levels.

“The report is deeply embarrassing for our country, as it highlights that corruption permeates numerous state agencies from the highest to the lowest levels,” said Dr. Silva.

He said that the government’s failure to address fraud and corruption was a key factor cited for the IMF’s delay in disbursing the second installment of financial aid.

Dr. Silva said that due to past misrepresentations to the IMF and the public, Sri Lanka now finds itself compelled to accept stringent measures proposed by the international body. The IMF report includes 16 recommendations for the Sri Lankan government to consider.

One of the key recommendations put forth by the IMF is the establishment of an independent anti-corruption advisory committee tasked with proposing nominees for the Commission to Investigate Allegations of Bribery or Corruption (CIABOC). Additionally, the IMF recommends the creation of a website dedicated to publishing asset declarations of senior government officials, including the President, Prime Minister, and Government Ministers.

“The report reveals that, to date, only 12 Members of Parliament have made their asset declarations public,” Dr. Silva highlighted.

Other notable recommendations from the IMF report include the introduction of a procurement law in line with international standards, the publication of competitive procurement agreements on a dedicated website, and the disclosure of information related to tax incentives on another website.

The revelations within the IMF report have sparked concerns and discussions within Sri Lanka, prompting calls for greater transparency and accountability in government operations and efforts to combat corruption at all levels.