Sri Lanka’s Political Crisis Fueling a Surge in Financial Crimes: Insights from the Global Organized Crime Index
Overview
Sri Lanka, currently grappling with political and economic instability, is witnessing a significant increase in financial crimes, as indicated by the latest Global Organized Crime Index.
The Economic Crisis and Financial Crimes
- The deepening economic crisis is contributing to the rise in financial crimes.
- An unstable economy, informal sector growth, and weak enforcement capacity facilitate criminal activities.
Types of Financial Crimes
- Money laundering
- Fraud
- Tax evasion
The Impact of the Crisis on the Population
- Economic contraction worst in South Asia in 2020, with a decline of 3.6%
- Unemployment, food insecurity, and declining living standards
Challenges for Law Enforcement Agencies
- Limited resources
- Lack of political will to tackle organized crime
Recommendations from International Community and Experts
- Government to take decisive action to address crisis and strengthen institutions
- Seek external support to stabilize economy and combat organized crime
Efforts from Civil Society and Partners
- Strengthening governance and promoting transparency
Consequences of Inaction
- The cost of inaction is high, with negative impacts on peace, security, and development
Call to Action
- Sri Lanka must prioritize addressing the root causes of financial crimes and working towards a stronger, more resilient future