TISL welcomes IMF structural benchmark on asset declarations

Saturday, 29 March 2025 01:01 - - {{hitsCtrl.values.hits}}

Says move marks step toward ensuring public access to asset declarations—a long-standing reform for which TISL strongly advocated
Opines without genuine public participation, governance reforms risk becoming ineffective Urges international financial institutions to institutionalise civil society participation; ensure governance reforms are not reduced to box-ticking exercises
States upcoming reforms on proceeds of crime, public procurement and beneficial ownership transparency must be implemented in ways guaranteeing genuine progress

Transparency International Sri Lanka (TISL) yesterday welcomed the introduction of a new structural benchmark in the IMF’s Third Review Agreement, addressing gaps in implementing the asset declarations system under the Anti-Corruption Act of 2023.

“This is a significant step toward ensuring public access to asset declarations—a long-standing reform for which TISL has strongly advocated,” it noted in a statement.

The benchmark requires the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) to remove excessive redactions, disclose bank balances and other asset values, improve accessibility, publish non-filers’ names, include Beneficial Ownership details in declaration forms, and enact a comprehensive Asset Recovery Law in line with UNCAC obligations. While this progress is welcome, it highlights a broader concern—Government institutions often prioritise procedural compliance over meaningful reform.

Weak governance and corruption were key contributors to Sri Lanka’s economic collapse, yet accountability remains lacking when governance-related commitments are not effectively implemented. Critical transparency and anti-corruption reforms risk being delayed or diluted without structured oversight and meaningful public engagement.

Without genuine public participation, governance reforms risk becoming ineffective. TISL calls on the Government to establish a structured, transparent mechanism for civil society engagement in governance reforms, particularly within International Financial Institutions-led programs such as the IMF agreement. This mechanism must go beyond ad-hoc consultations and ensure that reforms are developed, implemented, and monitored with input from the public and civil society organisations, reflecting real-world challenges and needs. An open, participatory approach will not only strengthen reform outcomes but also build public trust in the process.

TISL urges international financial institutions to institutionalise civil society participation, ensuring governance reforms are not reduced to box-ticking exercises. Just as macroeconomic targets are rigorously assessed, governance commitments must be subject to the same level of scrutiny.

Upcoming reforms on proceeds of crime, public procurement, and beneficial ownership transparency must be implemented in ways that guarantee genuine progress. The strength of Sri Lanka’s economic recovery will not be determined by financial restructuring alone but by its commitment to accountability, open governance, and the rule of law.