Private Sector Bribery under Sri Lanka’s New Anti-Corruption Regime: What Every Employee and Company Must Know
By Nalinda Indatissa PC
Bribery is no longer confined to dealings with public officials. Under Sri Lanka’s new anti-corruption legal regime, private sector bribery has been expressly introduced and criminalised. Employees, managers, and directors in private companies are now subject to criminal liability for corrupt conduct carried out in the course of business. This reform aligns Sri Lanka with international anti-corruption standards and recognises that corruption within private enterprises distorts markets, undermines fair competition, and weakens investor confidence.
The law prohibits the giving of a bribe, the asking for or solicitation of a bribe, and the acceptance of a bribe. These prohibitions apply across all levels of a company and in all work-related activities. A bribe is not limited to money. It includes anything of value given, offered, demanded, or received to improperly influence a business decision. This may take the form of gifts, travel, employment opportunities, promotions, favours, undisclosed commissions, or sexual favours. Sexual favours demanded or offered in exchange for workplace benefits constitute bribery under the law. Solicitation itself is an offence; no payment is required for criminal liability to arise. A mere request, hint, or demand is sufficient.
Liability is not confined to senior decision-makers. Junior staff, senior managers, and directors may all be held responsible. Corporate position, influence, or seniority does not provide protection under the new regime. The law applies whenever conduct is business-related, financial, or commercial in nature, including procurement, recruitment, promotions, payments, approvals, contract negotiations, and vendor selection within the private sector.
Every employee has a duty to act honestly, comply with company rules, and exercise authority fairly. Using one’s position for personal benefit constitutes a breach of duty even where no direct financial gain is received. Many investigations arise not from large-scale raids but from whistle-blower complaints, vendor or employee reports, audit findings, and anonymous information. Once an investigation begins, authorities may examine financial records such as cash books, expense vouchers, and consultancy or miscellaneous expenses, as well as digital and communication evidence including call records, SMS messages, WhatsApp communications, and emails. Deleting messages does not erase wrongdoing. Digital evidence may be recovered through forensic tools, backups, screenshots, recipient devices, or testimony, and call records are often retained by service providers. Digital trails now play a decisive role in modern bribery prosecutions.
Investigators closely examine the nature of an employee’s role, the authority entrusted to that person, and whether that authority was misused. Clear job descriptions and defined approval limits protect honest employees and help identify misconduct. From a prevention perspective, companies that rely on manual, opaque approval processes create fertile ground for corruption. In contrast, digitised approval systems with real-time tracking significantly reduce bribery risk. Real-time tracking records who approved what, when it was approved, and where delays occur. It makes decision-making transparent, limits informal influence, reduces opportunities for secret dealings, and curtails the abuse of discretion. When approvals can be monitored live, unexplained delays or deviations become immediately visible, discouraging both solicitation and payment of bribes.
Strong internal policies further reinforce integrity. Anti-bribery policies, procurement guidelines, and codes of conduct must be actively implemented and enforced. Equally important is whistle-blower protection. Employees must feel safe to report wrongdoing without fear of retaliation. Companies that provide confidential reporting mechanisms and protect whistle-blowers foster a culture of accountability rather than silence.
Minimising corruption in the private sector has direct implications for Foreign Direct Investment. Foreign investors look for transparency, predictability, and rule-based decision-making. Private sector corruption increases hidden costs, legal exposure, and reputational risk. As a result, investors either demand higher returns to offset risk or avoid the jurisdiction altogether. Strong enforcement against private sector bribery, combined with transparent corporate governance systems such as real-time digital approvals, enhances investor confidence, lowers transaction costs, and promotes sustainable long-term investment. Anti-corruption compliance is therefore not merely a legal obligation; it is an economic strategy.
Bribery is not only about money. Deleting messages does not erase wrongdoing. Transparency and honesty remain the strongest protection. An ethical workplace safeguards personal dignity, professional careers, and individual freedom, while also protecting the company and strengthening the national economy.
Nalinda Indatissa, PC
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