Financial Crime World

Title: “Anti-Corruption Compliance in Sri Lanka: A Legal Landscape”

Sri Lanka, an archipelago nation in the Indian Ocean, is continuously making strides in its commitment to combating bribery and corruption through various legislation and amendments. In this article, we delve into the key anti-corruption laws and recent developments in the South Asian country.

  1. Bribery Act No. 11 of 1954 (as amended)
  2. Penal Code 1883 (as amended)

These two pieces of legislation form the backbone of Sri Lanka’s legal framework against bribery and corruption.

Supplementary Legislation

Besides the Bribery Act and Penal Code, several other statutes contain provisions pertinent to the prevention of bribery and corruption. Some examples include:

  • Public Bodies (Prevention of Corruption) Act
  • Declaration of Assets and Liabilities Law
  • Prevention of Money Laundering Act
  • Public Property Act

Recent Anti-Corruption Legislation

Recent years have seen the enactment of specific anti-corruption legislation, including:

  1. Bribery (Amendment) Act No. 22 of 2018
  2. Judicature (Amendment) Act No. 9 of 2018
  3. Foreign Exchange Act No. 12 of 2017
  4. Prevention of Money Laundering (Amendment) Act No. 40 of 2011
  5. 19th Amendment to the Constitution

Extension of Anti-Corruption Provisions

One of the most significant updates in Sri Lanka’s legal landscape is the extension of anti-corruption provisions to cover bribe payments to both domestic and foreign government officials. Section 90 of the Bribery Act defines a “public servant” to include:

  • Government officials
  • Officers, servants, or employees of the state
  • Provincial councils
  • Local authorities
  • Scheduled institutions
  • Companies in which over 50% of the shares are held by the government

The prohibition of bribe payments extends to judicial officers, Members of Parliament, police officers, peace officers, and other public servants. Penalties for individuals found to be in violation of the anti-corruption laws include imprisonment and fines.

For legal entities, the penalties include hefty fines. Section 2 of the Penal Code asserts that every person shall be liable to punishment under the Penal Code. Moreover, having a compliance program designed to prevent bribery may be of evidentiary value.

Absence of Deferred Prosecution Agreements and Leniency Agreements

It is important to note that Sri Lanka, at present, does not have legal provisions for deferred prosecution agreements or leniency agreements. While plea bargaining may be a possibility at the discretion of the judge, each case varies depending on its unique circumstances.

Upcoming Articles

Over the next several articles, we will analyze the specific sections of the Bribery Act and Penal Code in detail to provide a deeper understanding of anti-corruption compliance in Sri Lanka. Stay tuned for further insights.