Colombo: The International Monetary Fund (IMF) has provided Sri Lanka with a $2.9 billion bailout, and as part of that agreement, the country's parliament has approved a law to fight corruption and improve governance in the crisis-stricken nation.
The legislation was passed without a vote in the 225-member house. “The bill is passed with amendments,” Sri Lanka Parliament Speaker Mahinda Yapa Abeywardena told lawmakers after more than two dozen pages of amendments were included in the draft legislation during the morning session.
After a severe foreign exchange crisis pushed Sri Lanka to default on its foreign debt last year, which resulted in skyrocketing inflation and a sharp depreciation in its currency, the island nation's economy plunged into the worst financial crisis in more than 70 years.
But the country’s fortunes improved after it locked down a $2.9 bn programme with the IMF in March, which included introducing new anti-corruption legislation to strengthen governance and bring it in line with the United Nations Convention Against Corruption.
This is the first time an IMF programme has been linked to such a measure in Asia.
The Commission to Investigate Allegations of Bribery or Corruption in Sri Lanka, which is tasked with conducting extensive investigations, would have more authority and resources according to the Anti-Corruption Bill. It can now work on collaborative investigations with regional and global partners.
The new bill also makes it mandatory for electoral candidates to declare their assets, which will be published ahead of elections, and expands bribery offences to include private sector stakeholders.