Public institutions most exposed to corruption in Sri Lanka differ from those inflicting the gravest economic losses, the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) revealed this week.
Presenting findings from a year-long nationwide survey, CIABOC Chairman Justice Neil Iddawala said that while citizens perceive the Police, politicians, Sri Lanka Customs, Immigration and Emigration, and schools as the most corrupt, the institutions that cause the most damage to the economy are revenue-generating bodies such as Customs, Inland Revenue, Excise and the Motor Traffic Department.
Speaking at a lecture for senior government officials in Colombo, Justice Iddawala warned that a single corrupt act in these key agencies could cost the state billions. He cited a recent case where officials allegedly sought a Rs.125 million bribe to help an importer evade Rs.300 million in taxes on goods worth Rs.3 billion, giving the importer a net gain of Rs.175 million at the state’s expense.
“This is why we receive fewer complaints from such places,” he said. “Both parties benefit, and the state loses.”
The survey also highlighted a provincial breakdown, with the Western Province emerging as the most corrupt, followed by North Central and Southern provinces. The Eastern, Northern and Uva provinces reported the lowest levels.
Bribery most commonly takes the form of cash (62%), but also includes goods such as electronics (21%), services such as flight tickets (12%) and sexual favours (5%), the latter now prosecutable under new legislation.
Justice Iddawala noted that Sri Lanka has strengthened its legal framework with the Anti-Corruption Act of 2023 and the Proceeds of Crime Act of 2025, which allow authorities to confiscate illicit assets even without a conviction.
He urged institutional heads to adopt five practical measures: strengthen internal controls, promote transparency through digitalisation, lead by example with asset declarations and ethical conduct, protect whistleblowers, and invest in ethics-based training.
“Good governance is not built in speeches,” he said. “It is built in the files you sign, the approvals you grant, and the fairness you afford every day.”
