Verité Research’s latest report sheds light on Sri Lanka’s glaring oversight in addressing corruption within its procurement framework, making it the sole South Asian nation without provisions to blacklist corrupt contractors.
The report, titled “Backwards in Blacklisting: Gaps in Sri Lanka’s Procurement Framework Enable Corruption,” uncovers two critical vulnerabilities in the country’s approach to combatting corruption in procurement practices.
Firstly, Sri Lanka’s procurement guidelines, established in 2006, notably lack provisions recognizing “engaging in corrupt and fraudulent activities during procurement” as grounds for blacklisting contractors. This omission creates loopholes for corrupt practices to flourish unchecked, contrasting with measures implemented in neighboring South Asian countries.
Secondly, despite having regulations in place to blacklist contractors who default on contractual obligations, Sri Lanka has failed to enforce these rules. Notably, the Department of Public Finance’s online database remains void of any blacklisted contractors, contrasting with the practices of countries like Nepal and Bangladesh.
The report’s findings underscore the pervasive corruption within Sri Lanka’s public procurement system, a concern echoed by civil society governance assessments and the International Monetary Fund (IMF). The IMF has urged Sri Lanka to enact a public procurement law by December 2024, aligning its practices with international standards.
