Government targets hidden wealth in anti-corruption drive
In a significant and bold move to end deep rooted corruption and recover plundered funds, the Sri Lankan government has launched an extensive operation in accordance with the newly enacted Proceeds of Crime Act No. 05 of 2025.
The legislation is a landmark in the country’s ongoing battle against illegal enrichment by conferring the powers of investigation, freezing, and seizure of illegally acquired assets both within the country and abroad.
The Proceeds of Crime Investigation Division (PCID) new division of the Sri Lanka Police was officially opened for business on October 20. Based at the old Police Headquarters building in Colombo, the unit has been tasked with the investigative role of probing criminal and non-criminal methods of illegal wealth acquisition.
It will be joined by 34 of the most significant government entities, including the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), the Financial Intelligence Unit (FIU), and other financial and law enforcement agencies.
A high-ranking government official said persons or institutions private or public which were discovered to have obtained money, property, or other assets illegally would not only be prosecuted for crime but also face civil forfeiture and asset seizure.
Significantly, the law enables authorities to seize assets even in cases where criminal convictions cannot be secured.
One of the most striking features of the Act is the shift in the burden of proof: suspects must now demonstrate that their wealth was lawfully acquired. If they fail to do so, courts may order confiscation even if the suspect has been granted bail.
The law also takes effect retrospectively so that probes can seek explanations for suspicious wealth accumulated over the last 30 years, and where the wealth is embezzled from public property, up to 50 years.
The move is part of a series of initiatives at a national level to regain integrity in governance. The government introduced the National Anti-Corruption Action Plan (NACAP) 2025-2029 early this year, headed by CIABOC and supported by the United Nations Development Programme (UNDP).
The strategy draws on public concern. A 2024 national survey reported 49 per cent of respondents admitting to paying bribes, and 84 per cent of respondents estimating that corruption deters tax compliance.
In additional assistance for such reforms, Japan has pledged a US$ 2.5 million grant to further enhance Sri Lanka’s anti-corruption systems and institutional capacity, the official said.
Already, the impact of the new law is beginning to surface. Sources indicate that at least four active investigations have been launched into luxury residences and hotel properties allegedly linked to public officials.
Meanwhile, CIABOC’s recent nationwide sticker campaign promoting anti-corruption reporting has led to a 26 per cent increase in public complaints compared to the previous year, a sign of growing citizen engagement and awareness.
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