The Sri Lanka Governance Diagnostic Assessment conducted by the IMF mission revealed persistent protests in 2022, indicating that corruption paved the way for the economic crisis. The GDA emphasised the government of Gotabaya Rajapaksa’s unique governance challenges, such as excessive concentration of authority, declines in tax revenues, and increased debt. The findings of the IMF mission highlight the need for improved governance and accountability.
The Governance Diagnostic Assessment conducted by the IMF mission indicates that the Wickremesinghe government’s efforts to restore past institutions are insufficient to address systemic governance challenges and corruption issues. Grand corruption is perceived to be more common than petty corruption, and corruption involves long-standing relationships between public and private elites. The GDA recommends that Sri Lanka develop a National Anticorruption Plan for 2025-2029, with inclusive consultation and public reporting requirements, and that Senior Officials’ Asset Declarations be made public.
In a recent report, the United Nations High Commissioner for Human Rights stated that the 2022 economic crisis exemplifies the indivisibility of human rights and how impunity, corruption, and the weakening of democratic and rule of law institutions ultimately impacted the economic situation.
It went on to say that it is critical to address the crisis’s underlying causes, such as corruption, power concentration, a lack of transparency and institutional checks and balances, and the unresolved legacy of conflict, including accountability.