Public Finance Data and Analysis
Free and Open Access to
Emphasized the critical need for Sri Lanka to abolish the Strategic Development Projects Act to combat corruption and improve fiscal governance.
At the Advocata event “Charting the Course: Revitalizing Economic Governance for Prosperity” held at the Galle Face Hotel, IMF’s Deputy Legal Department Unit Chief Joel Turkewitz emphasized the urgent need for Sri Lanka to abolish the Strategic Development Projects Act. This recommendation is a priority within the IMF Governance Diagnostic Report, which identified severe corruption and governance weaknesses contributing to Sri Lanka’s economic crisis. Turkewitz highlighted the importance of swift action by the government, noting the commitment to report on progress every six months and to revise the action plan as needed. The diagnostic, a comprehensive assessment of corruption vulnerabilities across key state functions, was conducted in collaboration with the Sri Lankan government, identifying 16 priority recommendations and 60 complementary ones. Among the key measures are publishing asset declarations for senior officials, making public procurement contracts above 1 billion rupees accessible online, and listing firms receiving tax exemptions.
The IMF’s governance diagnostic report, the first of its kind in Asia, reveals that Sri Lanka’s economic crisis is deeply tied to governance issues, necessitating substantial reforms. The abolition of the Strategic Development Projects Act is critical for reducing corruption and improving fiscal governance. Since the report’s release, the Sri Lankan government has committed to a rolling action plan, with regular progress reports and revisions, supported by the IMF through structural benchmarks and capacity development assistance. Public discourse and monitoring are crucial for ensuring adherence to these reforms. Turkewitz’s address underscores the importance of collective action in combating corruption and achieving better governance, with the IMF and its partners dedicated to supporting Sri Lanka’s path to economic stability and prosperity.
