In a sweeping move to confront decades of entrenched corruption and recover stolen public funds, the Sri Lankan government has launched a major anti-graft drive under the newly enacted Proceeds of Crime Act No. 05 of 2025. The law represents a historic milestone in the country’s long fight against illicit enrichment, granting sweeping powers to investigate, freeze, and confiscate illegally acquired assets both at home and abroad.
The initiative gained momentum with the formal establishment of the Proceeds of Crime Investigation Division (PCID) a new arm of the Sri Lanka Police on October 20, 2025. Operating from the old Police Headquarters in Colombo, the division has been mandated to probe criminal and non-criminal forms of illicit wealth accumulation.
It will collaborate with 34 key government entities, including the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), the Financial Intelligence Unit (FIU), and other financial and enforcement agencies.
A senior Finance Ministry official confirmed that individuals or institutions whether in the public or private sector found to have obtained money, property, or other assets unlawfully will face both criminal prosecution and civil asset forfeiture. Notably, the law allows for asset seizure even in cases where a criminal conviction cannot be secured, closing a major loophole that long shielded the powerful.
One of the Act’s most transformative provisions is the reversal of the burden of proof. Suspects must now demonstrate that their wealth was legitimately earned; failure to do so could lead to confiscation orders, even if they are granted bail.
Moreover, the law has retrospective effect, empowering investigators to scrutinize unexplained wealth accumulated over the past 30 years, and up to 50 years in cases involving embezzled public property.
The new law complements the broader National Anti-Corruption Action Plan (NACAP) 2025–2029, launched earlier this year under CIABOC’s leadership with technical support from the United Nations Development Programme (UNDP).
The plan responds to mounting public frustration — a 2024 national survey revealed that 49 percent of respondents admitted to paying bribes, while 84 percent believed corruption discouraged tax compliance.
Adding international backing to the reform effort, Japan has pledged a US$ 2.5 million grant to strengthen Sri Lanka’s anti-corruption framework and institutional capacity, according to Finance Ministry sources.
Already, the impact of the new regime is being felt. Authorities have initiated at least four high-profile investigations into luxury residences and hotel properties allegedly linked to public officials. Meanwhile, CIABOC’s recent nationwide awareness campaign has led to a 26 percent rise in public complaints, signaling a growing wave of citizen engagement and confidence in Sri Lanka’s fight against corruption
