Sri Lanka’s renewed effort to recover billions allegedly siphoned out of the country through corruption-linked transactions has entered a critical phase, as the government scrambles to strengthen its legal, institutional, and diplomatic tools. With public pressure intensifying amid economic hardship, authorities are accelerating cooperation with international agencies to trace, freeze, and repatriate assets believed to be parked in offshore accounts and property portfolios.
At the centre of the latest push is the Stolen Asset Recovery Initiative (StAR), jointly run by the World Bank and the United Nations Office on Drugs and Crime (UNODC). Senior StAR officials, during a high-level meeting at the Ministry of Justice, conveyed their willingness to provide technical expertise, global intelligence support, and legal guidance for Sri Lanka’s long-stalled recovery efforts. The meeting was chaired by Justice and National Integration Minister Harshana Nanayakkara, who described the assistance as “a crucial step in strengthening the rule of law.”
Sri Lanka enacted the Proceeds of Crime Recovery Act (POCRA) with the aim of enabling the state to pursue illicit wealth even when it has moved overseas. However, implementation has been sluggish. Fragmented investigations, weak interagency coordination, political interference, outdated regulations, and the absence of a dedicated task force have repeatedly undermined asset-tracing operations. StAR’s involvement is expected to help close these structural gaps.
During the discussions, StAR agreed to support several frontline agencies — including the Bribery Commission, the Police Proceeds of Crime Division, the Attorney General’s Department, the Financial Intelligence Unit (FIU) and the Ministry of Justice. Technical support is expected to cover forensic financial analysis, mutual legal assistance requests, drafting recovery strategies, and navigating complex cross-border legal barriers.
The government is also preparing to appoint a specialised inter-agency task force, tasked with integrating intelligence flows, coordinating foreign legal communication, and fast-tracking asset-freezing motions. StAR has further offered assistance in refining key legislation such as the Anti-Corruption Act and the Assets and Liabilities Act, both of which remain central to tracing wealth gained through bribery, kickbacks, and procurement fraud.
Despite these advancements, the scale of the challenge remains immense. International watchdogs estimate that Sri Lanka may have lost billions of dollars to illicit financial flows over decades — money believed to be hidden in Western bank accounts, shell companies in tax havens, luxury real estate, and foreign investments. Recovering such assets is often a multi-year battle requiring strong political will and airtight documentation.
For Sri Lanka, which is still recovering from economic collapse and recent natural disasters, the stakes are high. Effective stolen-asset recovery could bolster state revenue, restore public trust, and deter future corruption. But unless institutional weaknesses are addressed and political commitment remains consistent, the latest efforts risk becoming yet another unfulfilled promise.
