By: Staff Writer
January 01, Colombo (LNW): As Sri Lanka enters 2025 under a new government, the challenges of governance, corruption, and inefficiency remain pressing concerns.
Despite promises of good governance and a corruption-free public sector, significant reforms are needed to create by the new government for a sustainable and transparent system.
One major issue lies in governance weaknesses that hinder private sector development. Contract enforcement and property rights protection are severely constrained. Multi-year delays in resolving contract disputes make courts ineffective, pushing parties toward alternative, often illicit, methods of adjudication.
Similarly, confusion over property rights and the lack of digitized land records have led to prolonged legal battles, often resolved through opaque and corrupt means. Risks surrounding state-owned land, which constitutes 80% of the country, are particularly severe due to unclear titles and ambiguous processes for divestiture.
Concerns about judicial integrity also persist. Many private parties resort to illicit payments to expedite resolutions, undermining trust in the legal system. Strengthening judicial independence and competency has become critical for restoring confidence in the rule of law.
The report emphasizes immediate and structural reforms to address corruption and improve governance.
Key recommendations of the International Monetary Fund include bridging gaps in legal frameworks, ensuring access to essential information for oversight, and implementing structural measures to enhance transparency and efficiency.
A coherent approach focuses on: Defining clear authority and responsibility for core functions.Ensuring financial and operational independence for accountability and law enforcement institutions.
Promoting transparency in government practices, especially in public spending and asset management and establishing accessible and rule-based mechanisms to enforce agreements and challenge official misconduct are also essential.
Enhancing public access to information and accountability mechanisms is a vital factor to achieve these objectives.
The plan combines short-term actions to deliver visible improvements with long-term structural reforms to reshape public sector operations. These initiatives aim to align governance practices with the social and economic aspirations of Sri Lanka.
Achieving these objectives will require medium- to long-term efforts, significant resources, and support from international partners. The diagnostic recommendations will inform governance and anti-corruption policies, legal reforms, and measures outlined in the Extended Credit Facility Arrangement for Sri Lanka.
While the road ahead is challenging, the combination of immediate actions and structural reforms is crucial for building a transparent, efficient, and accountable governance system.
