Sri Lanka’s anti-corruption landscape has shifted materially with the Anti-Corruption Act, No. 9 of 2023. This is the most extensive reform to Sri Lanka’s anti-corruption framework since independence, consolidating multiple regimes into a single statute designed for governance, prevention, investigation, and prosecution.
The Act was certified on 8 August 2023 and came into operation on 15 September 2023. With its commencement, three longstanding statutes were repealed:
- the Bribery Act of 1954;
- the Commission to Investigate Allegations of Bribery or Corruption Act of 1994; and
- the Declaration of Assets and Liabilities Law, No. 1 of 1975.
These earlier laws operated separately, creating fragmentation, overlap, and uneven enforcement. The 2023 Act consolidated all of the previous framework into one machine, which in practice, provides the legal foundation for a more functional system.
CIABOC has become visibly more active — initiating inquiries, summoning officials, freezing property, and directing criminal proceedings. For individuals, organisations, and advisors, understanding the statutory structure and procedural mechanics is now essential.
This article provides a practical overview of the CIABOC’s powers, process, safeguards, and judicial controls under the Act. It is for general information only and does not constitute legal advice.
1. History & Evolution of Anti-Corruption in Sri Lanka
A short historical overview explains why consolidation became necessary:
- 1883 Penal Code: early statutory bribery offences, focused largely on public servants accepting or offering unlawful rewards.
- 1954 Bribery Act: codified modern bribery provisions and introduced the concept of “gratification”, capturing money, gifts, employment, favours, discharge of obligations, and other advantages.
- 1975 Assets & Liabilities Law: introduced mandatory asset declarations for public officers. It was progressive for its time but lacked digital systems and robust enforcement tools.
- 1994 reforms: “corruption: — was then interpreted as the abuse of office for any undue advantage — this was recognised as a distinct offence even in the absence of a bribe; and the CIABOC was established, but it was not independent. Its design left it vulnerable to executive dependence and other practical limitations.
- 2023: the need for a unified, independent, and enforceable regime became widely accepted.
The 2023 Act responds to those structural issues by consolidating offences, strengthening institutional design, and expanding investigative and prosecutorial tools.
2. International and Constitutional Frameworks
Two frameworks underpin the Act:
UNCAC – The United Nations Convention Against Corruption (UNCAC) – The most comprehensive global treaty addressing corruption. It focuses on 5 areas:
- prevention
- criminalisation and law enforcement
- international cooperation
- asset recovery
- technical assistance
Sri Lanka signed and ratified UNCAC in 2004. Section 2 of the Act expressly states that giving effect to UNCAC obligations is a central purpose of the statute.
Article 156A
Article 156A (introduced through constitutional reform) requires the establishment of a permanent independent commission with authority to investigate corruption ex mero motu — i.e., on its own initiative, without requiring a complaint.
The Act gives domestic effect to this constitutional mandate by creating a structurally independent CIABOC with broad statutory powers and defined objectives
3. Objects and Purpose of the Act
Section 2 sets out guiding objectives. In substance, the Act aims to:
- prevent and eradicate bribery and corruption;
- enhance transparency, accountability, and integrity in governance;
- establish an independent Commission with investigative and prosecutorial powers;
- strengthen public confidence and public participation in anti-corruption efforts;
- introduce a modern system of assets and liabilities declarations;
- promote cooperation with international bodies; and
- give effect to UNCAC and other international obligations.
Section 2 also provides a statutory definition of “governance” grounded in accountability, transparency, responsiveness, the rule of law, and stability — relevant when interpreting institutional conduct and statutory purpose.
4.The Commission: Structure, Independence, and Leadership
CIABOC is established as an independent body corporate with perpetual succession.
Composition and appointments
The Commission comprises three members appointed by the President on the recommendation of the Constitutional Council:
- two must be retired Judges of the Supreme Court or Court of Appeal; and
- one must have extensive experience in fields such as investigation, law enforcement, engineering, international relations, management of public affairs, or public administration.
One member is designated as Chair.
Tenure and asset declarations
Each member serves a single five-year term and is not eligible for reappointment — a design feature intended to enhance independence. Members must declare assets and liabilities before assuming office.
Statutory independence and non-interference
- Section 3(4) provides that the Commission shall act independently and not be subject to direction or control.
- Section 3(5) creates an offence for attempts to interfere with the Commission’s functions.
Director-General (DG)
The Director-General is appointed by the President on the Constitutional Council’s recommendation. The DG must be an Attorney-at-Law with at least 15 years’ experience in criminal prosecution and serves as CEO and Chief Accounting Officer. Importantly, the DG is responsible for filing charge sheets and indictments and directing prosecutions under the Act.
For legal and compliance audiences, this institutional design matters: it centralises investigative and prosecutorial authority within the statutory body rather than dispersing it across disconnected institutions.
5.Powers and Functions Beyond Investigation
CIABOC is not merely an investigative agency. Sections 32 to 40 list administrative and policy powers, including:
- appointing, promoting, disciplining, and removing staff;
- acting as the Central Authority for assets and liabilities declarations;
- implementing UNCAC obligations;
- developing public awareness and education programmes;
- examining laws, regulations, and procedures within public authorities to identify corruption risks; and
- recommending legislative reforms and improvements to governance structures.
The Act adopts a holistic model: prevention, education, oversight, policy, and enforcement are housed within one institutional design.
6.Investigative Framework: Complaints, Preliminary Inquiry, and Investigation
Part IV sets out the route from complaint to investigation.
Complaints and preliminary inquiry
Under Section 42, a complaint may be made:
- by any person,
- orally, in writing, or through electronic communication,
- regardless of whether the person complained against is currently in office.
CIABOC may also act ex mero motu based on information from any source. The Commission first conducts a preliminary inquiry, and where reasonable grounds exist to believe an offence has been committed, it directs the DG to commence a formal investigation.
Investigative powers (key tools)
During investigations, the Act provides CIABOC with broad powers, including:
- arrest without warrant (s. 47);
- detention up to 24 hours, excluding travel time (s. 48(2));
- search and seizure of documents and property (s. 45);
- obtaining non-intimate forensic samples (fingerprints, handwriting, hair, etc.) (s. 51);
- freezing bank accounts up to three months (s. 49(3));
- freezing orders over property (including property of spouses/family members), subject to High Court confirmation and extension (s. 53);
- assistance from Magistrates to secure documents or evidence (s. 52); and
- interception of communications where necessary (ss. 58–59).
Compared to older regimes, these tools are significantly broader and reflect modern enforcement models.
For organisations and advisors, the practical point is simple: the Act enables early-stage evidence control (documents, accounts, property, communications) at a level that requires proactive procedural and compliance planning.
7. Prosecution Pathways, Appeals, and Deferred Prosecution
Prosecution in the Magistrate’s Court
Under Section 65, upon completion of investigation, the DG may:
- file a charge sheet directly in the Magistrate’s Court,
- proceed without requiring sanction from the Attorney-General, and
- prosecute through Commission officers, the Attorney-General (if requested), or an authorised Attorney-at-Law.
If the accused pleads guilty, the Magistrate may record conviction and impose sentence. If not, the trial proceeds under the Code of Criminal Procedure Act with necessary adaptations.
Appeals
Under Section 68, the DG may appeal from judgments, orders, or sentences of the High Court or Magistrate’s Court.
Deferred Prosecution Agreements (DPA)
A major procedural innovation appears in Section 71: Deferred Prosecution Agreements for certain offences (including private-sector bribery and sports-related corruption), allowing conditional suspension with High Court approval. Conditions can include compensation, compliance measures, and corrective action — introducing flexibility and incentivising cooperation.
For corporate and regulatory audiences, DPAs are important because they introduce a structured route to resolution focused on remediation and governance correction rather than purely punitive outcomes.
8. Assets and Liabilities Declarations and Transparency Mechanisms
Part II modernises the assets and liabilities regime.
Who must declare
The declaration framework extends to a wide range of public officials, including Ministers, MPs, Judges, local authority members, Directors of public corporations, and other specified categories.
What must be declared
Declarations include:
- the declarant’s assets and liabilities;
- those of the spouse;
- dependent children;
- cohabitants; and
- assets held outside Sri Lanka.
CIABOC acts as the Central Authority and maintains a digital system for receiving and securing declarations.
Penalties and public accessibility
- Late submissions attract administrative fines.
- Failure to submit may trigger administrative and criminal consequences.
- False declarations are punishable by imprisonment up to one year and a fine of LKR 200,000.
- Certain declarations must be publicly accessible in redacted form under Section 85.
Protection for whistle-blowers and related persons
Whistle-blowers, informers, witnesses, and persons assisting the Commission receive protection under Sections 75–78.
9.Offences, Penalties, and Special Evidentiary Rules
The Act contains a wide range of substantive and procedural offences.
Substantive offences (examples)
- Bribery (ss. 93–102): offering, accepting, or soliciting gratification. “Gratification” is broadly defined (including financial benefits, employment, advantages, sexual favours, promises), under s. 162.
- Illicit Enrichment (s. 109): where assets exceed known lawful income, with a “show cause” feature.
- Corruption (s. 111): abuse of office to obtain an advantage or cause a loss, with or without a bribe.
- Private sector bribery (s. 106): misconduct involving directors, officers, or employees of private bodies.
- Conflict of interest (s. 107): failure to disclose personal interest in a public decision.
- Sporting corruption (s. 108): match-fixing and related offences.
Procedural offences (examples)
- obstruction (s. 118)
- false complaints (s. 119)
- unauthorised disclosure (s. 120)
- influencing/threatening officers (s. 125)
- interference with witnesses / destruction of evidence (s. 127)
Special evidentiary rules
The Act also includes evidentiary provisions which materially affect investigations and trials, including:
- the giver of gratification is a competent witness (s. 143);
- the spouse of the accused is a competent witness (s. 144);
- certain confidentiality obligations in other laws do not prevent provision of information (s. 145); and
- self-incriminating or confessional statements by accused persons are inadmissible (s. 147).
10.Bail and Detention Under the Act
The Act takes a strict approach to arrest and bail.
- Under Section 132, all offences under the Act are cognisable, permitting arrest without warrant.
- Under Section 149, all offences are non-bailable.
In certain circumstances — where a person is detected soliciting, accepting, or offering gratification, and the Commission certifies this fact to court — the Magistrate must remand the suspect until conclusion of trial unless exceptional circumstances are established.
If the Commission informs court that it does not intend to proceed with prosecution, the suspect must be discharged.
This framework materially increases early-stage risk for individuals and executives and elevates the importance of immediate procedural strategy, preservation of rights, and careful engagement with the investigative process.
11. Judicial Review and Exclusive Supreme Court Jurisdiction
A significant structural provision appears in Section 160:
- only the Supreme Court has jurisdiction to entertain applications challenging or seeking relief against actions or decisions of the Commission; and
- no court may issue stays, injunctions, or orders preventing, delaying, or restraining CIABOC from conducting investigations or exercising powers.
This provision curtails the earlier practice of interrupting investigations through interim orders and shifts challenge mechanisms into a narrower constitutional channel.
12. National Anti-Corruption Action Plan 2025–2029
The enforcement ecosystem is also shaped by the National Anti-Corruption Action Plan 2025–2029, implemented under Presidential Circular 02 of 2025 and overseen by a National Steering Committee.
Its four pillars are:
- Prevention — Internal Audit Units, corruption-risk assessments, electronic declaration systems
- Institutional strengthening — capacity, training, infrastructure, specialised courts
- Education and community engagement — awareness programmes in schools, public sector, civil society
- Law and policy reform — FATF alignment, integration of proceeds-of-crime mechanisms, modernisation of public administration
For advisors and organisations, the Plan signals that implementation is not limited to prosecutions; it also includes governance reforms and compliance systems embedded across institutions.
13. Relevance to Organisations, Advisors, and the Legal Profession
The Act reshapes the advisory landscape. The expanded investigative powers, breadth of offences, and seriousness of procedural restrictions (including non-bailability and exclusive review channels) mean that corruption and illicit enrichment exposure is not confined to traditional “criminal” settings.
In practice, lawyers and advisors will increasingly be required to support:
- compliance programmes and governance design
- internal investigations and document control
- conflict management and disclosure decisions
- asset tracing and recovery-related issues
- cross-border cooperation and due diligence responses
For organisations, the most important point is operational: enforcement now intersects directly with corporate process — finance flows, procurement decisions, asset declarations, conflicts of interest, and recordkeeping systems.
Conclusion
The Anti-Corruption Act, No. 9 of 2023 is a comprehensive legal framework designed to enhance integrity, accountability, and transparency in Sri Lanka’s governance landscape. It unifies multiple systems into a single statute, creates an empowered and independent Commission, and strengthens the tools available for prevention, investigation, and prosecution.
Together with a changing enforcement culture and the National Anti-Corruption Action Plan 2025–2029, the Act marks a turning point. For individuals, organisations, and advisors, procedural literacy is now essential — not simply for litigation, but for governance, compliance, and risk management.
References (Primary Statutes / Instruments)
- Anti-Corruption Act, No. 9 of 2023 (Sri Lanka)
- Presidential Circular 02 of 2025 (National Anti-Corruption Action Plan 2025–2029)
- United Nations Convention Against Corruption (UNCAC)
- Constitution of Sri Lanka (Article 156A)
Prepared by the Research Team at AW Chambers
