Sri Lanka Determined to Stay Off Global Financial Watchlists, Says PM

COLOMBO (News 1st); Sri Lanka's Prime Minister Dr. Harini Amarasuriya warned that corruption remains one of the biggest threats not only to economic stability but also to the stability of a nation itself.

Addressing Sri Lanka's third mutual evaluation by the Asia-Pacific Group on Money Laundering (APG), the Prime Minister said the strength of a country's financial system depends not only on institutions and regulations, but on how effectively they work together in practice.

She described the mutual evaluation as a significant milestone for Sri Lanka, saying it provides an opportunity for the country to demonstrate its commitment to combating money laundering, terrorist financing and proliferation financing, while also highlighting the progress achieved through years of collective institutional effort.

The Prime Minister stressed that a strong anti-money laundering and counter-terrorism financing framework is vital to protecting the integrity of the financial system, safeguarding the economy from illicit activities and maintaining the confidence of international partners, investors and financial institutions.

However, she noted that the challenge facing countries today extends beyond financial regulation.

"One of the major crises that democratic nations across the world are experiencing currently is the erosion of trust in public institutions, particularly in institutions that are expected to govern and also in financial institutions."

The Prime Minister said corruption lies at the heart of that crisis.

"The major reason for this is corruption. Unless we deal with this, this is actually a real threat not just to economic stability but to political stability and the stability of a nation in general."

Recalling Sri Lanka's previous experiences under increased monitoring by the Financial Action Task Force (FATF), Dr. Amarasuriya said those periods carried significant consequences for the country's reputation, financial sector and broader economic prospects.

"We are mindful of the lessons we have learned from the past. Sri Lanka has twice experienced the challenges associated with being placed under the Financial Action Task Force increased monitoring. Those experiences had far-reaching implications for the country's reputation, financial sector and economic prospects."

She said the experiences point to the need for a strong and effective anti-money laundering, counter-terrorism financing and counter-proliferation financing regime, backed by sustained commitment across all institutions.

The Prime Minister said the Government's objective is clear.

"Today our objective is clear. To demonstrate the strength of our systems, sustain the progress we have achieved and ensure that Sri Lanka remains a trusted and responsible member of the global financial community."

Dr. Amarasuriya stressed that the Government's commitment extends beyond the evaluation itself.

"Let me assure you that the government of Sri Lanka remains fully committed to the success of this process and to the continuous strengthening of this regime, the anti-corruption regime, not any other regime."

She said the country's broader vision is centred on transparency, good governance, financial integrity and sustainable economic growth, noting that Sri Lanka has implemented substantial legislative, regulatory, supervisory, investigative and enforcement reforms over the years.

According to the Prime Minister, the benefits of those reforms are already becoming visible, particularly over the last two years.

She credited the progress to a coordinated whole-of-government approach involving policymakers, regulators, supervisors, law enforcement agencies, the judiciary, reporting institutions and private sector stakeholders.

Describing the evaluation as an opportunity for reflection as well as assessment, Dr. Amarasuriya said Sri Lanka remains committed to identifying weaknesses and strengthening areas that require improvement.

She noted that recommendations emerging from the evaluation would help the country further align its systems with international best practices while addressing emerging risks more effectively.