Corruption Costs Sri Lanka Billions—Funds That Could Save Lives : UNDP

COLOMBO (News 1st); The United Nations Development Programme (UNDP) has issued a stark warning about the scale of corruption in Sri Lanka’s revenue administration, estimating annual losses of approximately Rs. 72 billion.

Speaking at the launch of a new anti-corruption initiative, Azusa Kubota, UNDP Resident Representative in Sri Lanka, emphasized that these losses represent funds that could otherwise be invested in the country’s health, education, infrastructure, and essential public services.

“Public distrust and administrative inefficiencies have severely limited tax compliance,” Kubota said. “By restoring credibility, we can expand the tax base and strengthen public financing in a more equitable and sustainable manner.”

The newly launched project builds on years of collaboration between UNDP and Sri Lanka, particularly in the area of tax policy reform. A key focus of the initiative is the operationalisation of internal affairs units (IAUs) across more than 100 public institutions. These units are designed to detect, manage, and respond to corruption risks from within, promoting a culture of preventive governance.

“Empowering IAUs will enhance public sector integrity from the inside out,” Kubota noted, adding that institutional accountability is essential for long-term development and public trust.