From Diagnostic to Implementation: An Update From Sri Lanka

Key Takeaways

• IMF diagnostic spurred legal amendments for beneficial ownership disclosure
• Digital register launched March 31, 2026, despite verification gaps
• Bribery incidence rose to 26% in 2025, showing persistent corruption
• CPI score improved three points to 35, a cautious positive signal
• Civil society and Open Ownership provided critical technical and advocacy support

Pulse Analysis

The global anticorruption landscape has entered a defensive phase, with the United States rolling back key transparency rules and the EU’s public beneficial‑ownership registries facing legal setbacks. In that context, Sri Lanka’s recent progress stands out as a rare example of a diagnostic recommendation translating into concrete policy action. By leveraging the IMF’s 2023 Governance Diagnostic, the government identified beneficial‑ownership transparency as a priority, then moved swiftly to amend the Companies Act and related statutes, laying the legal groundwork for a modern, digital register.

Implementation required more than legislation. The Registrar of Companies took the lead, while the Financial Intelligence Unit aligned the effort with AML/CFT obligations under FATF Recommendation 24. International partners, notably the nonprofit Open Ownership, supplied technical expertise, and civil‑society groups such as Transparency International Sri Lanka and Verité Research shaped the register’s design and pushed for public‑access provisions. The result—a functional beneficial‑ownership database launched in March 2026—offers a platform for cross‑referencing corporate ownership with procurement, tax and expenditure data, potentially exposing conflicts of interest and collusive behavior that were previously hidden.

While the register marks a tangible step forward, challenges remain. Data verification mechanisms are still nascent, and firm‑level surveys show bribery incidence climbing to 26% in 2025, underscoring deep‑rooted corruption risks. Nonetheless, Sri Lanka’s CPI score rose three points to 35, signaling a modest improvement in perceived integrity. The experience illustrates that, even amid global policy stagnation, coordinated action among government agencies, civil society, and development partners can sustain reform momentum and deliver operational tools that enhance transparency and accountability.