Private sector contributes to public sector corruption in SL: TISL

By Nuzla Rizkiya
The private sector of Sri Lanka plays a prominent role in enabling corruption within the public sector of the country, a recent study conducted on corruption by Transparency International Sri Lanka (TISL) found. 
The research identified the private sector as the “supply side” of corruption in Sri Lanka, noting that the highest probability of corruption within the private sector occurs when the private entities engage with the public entities.
The private companies often resort to offering gratifications of varying kinds to officials to obtain public services in a timely manner, according to the report. 
“Refusing to engage in such activities when dealing with the public sector could lead to significant delays in project implementation, causing financial losses to the company. In this light, several respondents alleged Sri Lanka Customs, the Inland Revenue Department and Excise Department of Sri Lanka as some of the most corrupt public sector institutions that the private companies must engage with,” the report stated.

Moreover, the private sector entities are alleged to be engaging in political lobbying and creating monopolies to manipulate the market significantly.
The key factors driving this culture is the politicisation of the public sector, a lack of political will to address corruption and insufficient resources and infrastructure needed to implement anti-corruption measures, according to the report.
“The respondents noted that a key risk factor creating a vulnerability for corruption is the weak implementation of the law. Although the public listed companies are heavily regulated, their unlisted subsidiaries are not regulated to such a high standard. This enables the parent company to outsource their corruption to a subsidiary or sub-subsidiary,” the report said.
The study recommended that the private sector entities of Sri Lanka should adopt stronger anti-bribery and anti-corruption policies and set up better internal control mechanisms. It urged the industries to come together and protect whistleblowers and create a corporate culture where performance and ethics are valued.
Recommendations for the public sector included strengthening regulatory authorities, digitising processes and improving procurement procedures.
“The Sri Lankan public over the past two years has demonstrated a greater outrage over the impact of corruption, which shows that the anti-corruption appetite of the public has increased. This has created an impetus for companies to adopt behavioural changes in favour of stronger anti-corruption programmes and policies. The adoption of zero-tolerance policies to corruption is seen as a strong first step,” the report stated.