Sri Lanka – Government Defence Anti-Corruption Index 2015

Corruption in the News

Government Anti-Corruption Index 2015

Country Recommendations

Sri ’s GI Ranking in Band E places it in the very high risk category for corruption in the defence and security sector. The country scored Band E across four risk areas: Political, Finance, Operations and Procurement. Operations scored slightly higher in Band D. While newly elected President Maithipala Sririsena has overseen a series of anti-corruption reforms since his ascension to power in January 2015, it is unclear how these will remedy corruption vulnerabilities stemming from an absence of legislative scrutiny of defence issues, allegations of nepotism in the appointment of key military personnel, and a lack of formal regulations for defence procurement.  We suggest the following reforms of the security sector to minimize corruption risk.

Enhance Legislative Scrutiny

Under the previous administration, President oversaw the entire Defence Sector and faced little to no effective oversight and scrutiny by the legislature. After assuming power in January 2015, President Maithipala Sirisena’s government passed the 19th amendment to the constitution. In addition to replacing Sri Lanka’s executive presidential system with a more balanced parliamentary system, the amendment has sought to establish an independent National Audit Commission that will report directly to .

To build upon Rajapaksa’s reforms, we recommend that the government establish a parliamentary committee tasked specifically with the oversight of defence and security activities, strategy and spending. This committee should 1) have access to a fully detailed defence budget and internal audit reports; 2) be able to call expert witnesses and scrutinise defence agencies and institutions; 3) meet regularly and publish reports on its activity.

Increase Budget Transparency

The Ministry of Public Finance publishes a budget for security sector finances. However, few details aside from total revenue and total expenses are included. To increase transparency and civilian oversight we recommend that the government publish an annual defence budget that includes detailed information on expenditure across functions including research & design, training, salaries, acquisitions, disposal of assets, maintenance and personnel expenditures to help ensure that the budget is spent on equipment that meet Sri Lanka’s strategic priorities and needs.

Establish Clear Protocols for Promotions

Evidence suggests that political interference, nepotism and lack of objective criteria for appointments and promotions has been a consistent issue in military appointments.   President Rajapaksa chose his brother Gotabaya Rajapaksa to be the Defence Secretary and his other brother Basil Rajapaksa to head the Finance Ministry.

We recommend that formal written procedures establishing an independent, transparent, and objective appointment system for the selection and promotion of military personnel at all levels be established. This system should be published, and accompanied by the use of objective job descriptions, assessment processes for appointments, and independent oversight.

Performance

Overall score

  • Band: E (Very high risk of defence corruption)

Area scores

  • Political: 20%
  • Financial: 20%
  • Personnel: 42%
  • Operational: 20%
  • Procurement: 21%

Assessment

Political 01. Is there formal provision for effective and independent legislative scrutiny of defence policy?
Score 0.0
Assessor Comments Under the previous government, which was in power until early January 2015, there was no evidence of an effective independent organisation to exercise oversight over defence matters; the entire Defence sector (including civil security, intelligence, customs) was headed by the President Mahinda Rajapaksa, with his brother Gotabaya Rajapaksa acting as the Defence Secretary.

There have been some positive changes since the new government came into power. Some constitutional changes have been made which could allow for independent legislative scrutiny of defence policy. However, at the time of writing this assessment it was too early to assess exactly how these proposed changes were implemented in practice.

The new government headed by President Maithipala Sririsena passed the 19th amendment [11] to constitution to create a balanced parliamentary system and remove the executive presidential system that the previous Rajapaksa government had fostered [5]. The 19th amendment also removed the powers of the President to decide on Prime Ministerial appointments [6].

Under the 19th amendment, an independent National Audit Commission is to be established, and this received cabinet approval in April 2015[8]. The Commission is reported to be independent, especially from the executive [7]. It answers to the parliament and will comprise of the former Auditor Generals, Deputy Auditor General and retired judges of superior courts[7].

The Sirisena government has also drafted a Right to Information (RTI) Act which is a mark of progress towards creating some amount of transparency. However CSOs and media reports have pointed out issues with broad secrecy clauses which may limit the effectiveness of the RTI [9].

Under the Rajapaksa government, the President held a high degree of control over the working of the Office of the Auditor General, Commission to Investigate Allegations of Bribery and Corruption, the Ombudsman, Attorney General and the Secretary General of Parliament. Following the end of the war, President Rajapaksa passed the 18th Amendment in September 2010, which gave him undisputed control of the country and weakening the opposition, human rights organisations, freedom of press and NGOs [2].

The current Sirisena government has also proposed to set up independent Commissions to investigate corruption [10].

As at September, there was no committee/organisation capable to exercise oversight over defence policy.

Response to Peer Reviewer 1: The comments about the 18th amendment do not add to the existing assessment of the 18th amendment. Comments about the war crimes are not necessarily required here as the main point oversight of defence matters. Besides, the war crimes issue is more than just a defence policy. While it is relevant, it also stretches across different issues and problems in Sri Lanka. It is best to keep the assessment limited to matters of defence and security policy.

Response to Peer Reviewer 2: The comments about the defence budget are not relevant in this question as this deals with policy. Budget matters are dealt with in the respective part of this questionnaire.

Comment about the Parliamentary Consultative Committee have been included, but it it yet to be seen how changes with the new government will impact its capacity for independent oversight. Score is left unchanged at 0.

Assessor Sources 1- &quoute;The Long Reach of Sri Lanka’s Rajapaksa Dynasty&quoute;, Time, 8 April 2010, http://content.time.com/time/world/article/0,8599,1984484,00.html

2- &quoute;The Rajapaksas: who are Sri Lanka’s ruling dynasty?&quoute;, Channel4, 12 November 2013, http://www.channel4.com/news/sri-lanka-mahinda-rajapaksa-commonwealth-meeting-2013

3- Gulbin Sultana, &quoute;18th Amendment: Making a Mockery of Democracy in Sri Lanka&quoute;, Institute for Defence Studies and Analysis, 7 October 2010, http://www.idsa.in/idsacomments/18thAmendmentMakingaMockeryofDemocracyinSriLanka_gsultana_071010

4- ‘Sri Lanka: Post-War Progress Report,’ (13 September 2011). International Crisis Group. Accessed 16 March 2012 http://www.crisisgroup.org/en/publication-type/key-issues/country/sri-lanka-post-war-progress-report.aspx

5- WSJ, (2015). Sri Lankan Parliament Passes Amendment to Limit Presidential Terms. [online] Available at: http://blogs.wsj.com/indiarealtime/2015/04/29/sri-lankan-parliament-passes-amendment-to-limit-presidential-terms/ [Accessed 21 Sep. 2015].
6- Daily News, (2015). ‘President’s Executive powers scrapped by 60-65 %’ | Daily News Online : Sri Lanka’s National News. [online] Available at: http://www.dailynews.lk/?q=local/president-s-executive-powers-scrapped-60-65 [Accessed 21 Sep. 2015].
7- Daily News, (2015). National Audit Bill already drafted – Eran. [online] Available at: http://www.dailynews.lk/?q=local/national-audit-bill-already-drafted-eran [Accessed 21 Sep. 2015].
8- Adaderana, (2015). Cabinet approves draft bills on Right to Information and National Audit. [online] Available at: http://www.adaderana.lk/news/30599/cabinet-approves-draft-bills-on-right-to-information-and-national-audit [Accessed 20 Sep. 2015].
9- Sri Lanka Brief, (2015). The Draft Right to Information Act of Sri Lanka | Sri Lanka Brief. [online] Available at: http://srilankabrief.org/2015/02/sri-lanka-right-to-information-act-draft/ [Accessed 20 Sep. 2015].
10- Sunday Leader, (2015). CIABOC To Be Revamped. [online] Available at: http://www.thesundayleader.lk/2015/09/06/ciaboc-to-be-revamped/ [Accessed 20 Sep. 2015].
11- &quoute;19th Amendment to the Constitution of the Democratic Socialist Republic of Sri Lanka&quoute;, March 2015, https://www.colombotelegraph.com/wp-content/uploads/2015/03/Exclusive-19th-Amendment-draft-.pdf, [accessed 21 Sep. 2015]

Peer Reviewer4037 Opinion Agree with Comments
Peer Reviewer4037 Comments The power to appoint persons to public office has been vested through Amendment 18 in the hands of the President including such positions as the Human Rights Commission; Permanent Commission to Investigate Allegations of Bribery and Corruption; and the Chief Justice and Judges of the Supreme Court.

For its part, the International Crisis Group accused the GOSL in September 2011 of not having taken

‘credible steps to ensure accountability for the grave allegations of war crimes and crimes against humanity identified in the April 2011 report of the Secretary General’s Panel of Experts on Accountability in Sri Lanka. … Instead, its post-war agenda has been to further centralise power, expand the role of the military, tundermine local civilian authorities, and politicise the institutions that should uphold the rule of law and tcombat impunity’ (‘Sri Lanka: Post-War Progress Report.’ 2011).

Sources:

‘Lively discussion on 18th Amendment and Beyond,’ (1 April 2011). Transparency International Sri Lanka, Accessed 25 May 2011. http://www.tisrilanka.org/?cat=66.

‘Sri Lanka: Post-War Progress Report,’ (13 September 2011). International Crisis Group. Accessed 16 March 2012 http://www.crisisgroup.org/en/publication-type/key-issues/country/sri-lanka-post-war-progress-report.aspx

‘The 18th Amendment To Sri Lanka’s Constitution,’ (21 September 2010). Lanka Solidarity. Accessed 1 December 2010. http://www.lankasolidarity.org/statements/18th-amendment-sri-lanka%E2%80%99s-constitution.

Peer Reviewer4480 Opinion Disagree
Peer Reviewer4480 Suggested Score 1
Peer Reviewer4480 Comments There are two main mechanisms by which the legislature scrutinizes the executive.

First, the defence budget, which contains some details of defence allocations, is scrutinsed and approved by the legislature (See Budget Estimates Vol. I and Vol. II – http://www.treasury.gov.lk/depts/nbd/budgetestimates/2013/headlist/103/103.pdf ).

Second, a parliamentary consultative committee on defence exists but its proceedings are not publicly available. (http://www.parliament.lk/en/component/committees/commitee/showCommittee?id=73&type=committee&Itemid=106)

TI Reviewer4738 Opinion Agree with Comments
TI Reviewer4738 Comments The latest constitutional amendment (the 19th Amendment) maintains the supremacy of the President over the armed forces.
Political 02. Does the country have an identifiable and effective parliamentary defence and security committee (or similar such organisation) to exercise oversight?
Score 0.0
Assessor Comments There is no parliamentary committee to exercise oversight under the new government. It is not clear if President Sirisena intends to set up any such parliamentary committee.

Under the previous government, there was a Consultative Committee on Defence and Urban Development. In principle, &quoute;each Consultative Committee shall have the power to send for and examine persons, papers and records, to move from place to place and to do all such acts as are necessary for the fullest consideration of the matters referred to it and to meet notwithstanding any adjournment of Parliament.&quoute; However, the Defence Committee’s functioning and reports of scrutiny were not transparent. Reports from other committees were published, but defence committee reports were not [3].

Assessor Sources 1- Consultative Committee on Defence and Urban Development, Parliament of Sri Lanka, http://www.parliament.lk/en/component/committees/commitee/showCommittee?id=73, accessed on 19 May 2014

2- Consultative Committees, Parliament of Sri Lanka, http://www.parliament.lk/en/component/committees/categories?id=2&Itemid=106, accessed on 19 May 2014

3- Latest publicly available consultative committee report. http://www.parliament.lk/uploads/documents/concomreports/1407751477025463.pdf#page=61

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree with Comments
Peer Reviewer4480 Comments Other committee reports have been publicly published, but defence committee reports have not. For example, see the latest publicly available consultative comittee report.

http://www.parliament.lk/uploads/documents/concomreports/1407751477025463.pdf#page=61

TI Reviewer4738 Opinion Agree with Comments
TI Reviewer4738 Comments In a TI Sri Lanka (TISL) interview with an expert on Sri Lankan defence affairs, it was mentioned that while there is no such parliamentary committee, there exists a National Security Council that consists of the the armed service commanders, the Inspector General of Police, the Secretary to the President, Secretary to the Defence Minister and the Prime Minister. However, this is insufficient in producing a healthy national security programme; After Eelam War IV, Sri Lanka has been questioned about human rights violations that took place and its accountability in this regard. To answer these questions effectively, the Secretary of Foreign Affairs and Secretary of the Ministry of Disaster Management and Human Rights should be on this committee.
Political 03. Is the country’s national defence policy debated and publicly available?
Score 0.0
Assessor Comments There does not seem to be a publicly available defence policy as such. There is no evidence of debate on the role and operations of the country’s military either. The activities of the defence forces were previously tightly controlled by former President Mahinda Rajapaksa and Defence Minister Gotabaya Rajapaksa. Although the new government came into power in January 2015, no amendments to the defence policies of the previous regime have been made as of yet. It has announced that it is formulating a new National Security Plan for Sri Lanka [5] but this has not yet been open for public consultations of debate.

The new government has shown some openness to public consultation when it opened the draft Freedom of Information (FOI) for public feedback [6]. Although this is not related to defence policy, it is an incident indicating the government’s inclusion of public feedback before a decision.

Historically, some issues of military deployment and activity have been debated in Parliament and occasionally in other public fora – often anonymously for fear of reprisals. In recent times, there have been reports questioning the military’s role in post-war Sri Lanka and presence in the Tamil areas in the North [1]. Some think tanks and NGOs have also questioned the military’s involvement in civilian jobs [2]. The government has offered repetitive responses supporting their own decisions without effectively addressing concerns raised.

Concerns have been raised over perceptions of enhanced militarization of particular areas of the country, and specifically in Tamil areas in the North and the secrecy and lack of transparency surrounding defence policy. In the post-war period civil society actors operating in these areas have expressed concern that public events, community gatherings, and protest activities in the North continue to require an official from the GOSL and/or someone from the military at the event to monitor ‘security’ and organizers have described both plain-clothes and uniformed military officers as having been in attendance at events, including their secret photographing and recording of activities. Another aspect where lack of transparency surrounding defence policies and practices can be seen concerns the issue of land (re)registration and resettlement programs amidst accusations of the ‘colonization’ of land in the North by the and GOSL, and, the continuation of High Security Zones (HSZ) in the North.

Response to Peer Reviewers : Some of the comments have been included in the amended response.

Assessor Sources 1- &quoute;Military Presence In North and East In The Normalization Process&quoute;, The Sunday Leader, 13 October 2013, http://www.thesundayleader.lk/2013/10/13/military-presence-in-north-and-east-in-the-normalization-process/

2- Andi Schubert, &quoute;Victorious Victims: An Analysis of Sri Lanka’s Post-War Reconciliation Discourse&quoute;, March 2013, International Centre for Ethnic Studies, http://www.ices.lk/victorious-victims/

3- DFAT Report 1478, (28 February 2013). Department of Foreign Affairs and Trade Australia – Migration Review Tribunal Refugee Review Tribunal (MRT.RRT). Accessed 12 April 2013. Available from: http://dfat.gov.au/foi/downloads/dfat-foi-F580.pdf.

4- Mushtaq, M., (25 January 2012). ‘Rajapaksa: don’t let down guard against terror,’ Khabar South Asia. 25 March 2012. Available from: http://khabarsouthasia.com/en_GB/articles /apwi/articles/features/2012/01/25/feature-02.

5- Daily FT, (2015). Comprehensive national security plan under preparation: President. [online] Available at: http://www.ft.lk/article/424941/Comprehensive-national-security-plan-under-preparation:-President [Accessed 20 Sep. 2015].
6- Sri Lanka Brief, (2015). The Draft Right to Information Act of Sri Lanka | Sri Lanka Brief. [online] Available at: http://srilankabrief.org/2015/02/sri-lanka-right-to-information-act-draft/ [Accessed 20 Sep. 2015].

Peer Reviewer4037 Opinion Agree with Comments
Peer Reviewer4037 Comments Concerns have been raised over perceptions of enhanced militarization of particular areas of the country, and specifically in Tamil areas in the North and the secrecy and lack of transparency surrounding defence policy. In the post-war period civil society actors operating in these areas have expressed concern that public events, community gatherings, and protest activities in the North continue to require an official from the GOSL and/or someone from the military at the event to monitor ‘security’ and organizers have described both plain-clothes and uniformed military officers as having been in attendance at events, including their secret photographing and recording of activities. Another aspect where lack of transparency surrounding defence policies and practices can be seen concerns the issue of land (re)registration and resettlement programs amidst accusations of the ‘colonization’ of land in the North by the army and GOSL, and, the continuation of High Security Zones (HSZ) in the North. Although many of the checkpoints in the North along the A9 highway have been withdrawn, the district is still a HSZ and the military maintains several HSZs having set up military installations and bases including on lands that Northern Tamils and Muslims were displaced from during the war. The military are believed to be extending beyond official ‘defence’ work to have a hand in multiple areas of post-war reconstruction from infrastructure to tourism and even ’s urban renewal’ programmes’.

Instead of defence policy being debated publicly through parliamentary discourse mechanisms and debate, defence policies are largely determined behind closed doors and continued high military and defence expenditures justified on the grounds that despite the military defeat of the in 2009 and the elimination of its top leadership, remnants of the group’s global establishment are still active and that action is necessary to guard against this potential threat, and that one of the primary ways to guard against the re-emergence of terrorism is to strengthen Sri Lanka’s intelligence network. These statements serve to justify the Government of Sri Lanka’s (GOSL) continued post-war security measures through the perpetuation of the ‘threat’ narrative and the necessity of maintaining a large military presence in order to protect Sri Lankans.

Interestingly although on 25 August 2011 President Rajapaksa announced that the government would not renew Sri Lanka’s Emergency Regulations (ERs) stating that the country can now ‘function democratically under the ordinary law’ in the post-war period, defence policies that fell under the ERs continue to be practiced and even extended through parallel regulations under the PTA. These include the continued militarisation of HSZs and the detention (without charge or access to legal counsel) of thousands of LTTE suspects, including the approximately 3,000 who remain detained for ‘rehabilitation’, nearly all of whom have been held beyond the two-year maximum stipulated by the ERs. This indicates the continued impenetrability of the policies and practices of Sri Lanka’s defence Ministry and armed forces and the secrecy surrounding how policies are implemented and determined.

Sources:

Bateman, G., ‘Fear and Loathing in Post-War Sri Lanka,’ (12 October 2011). The Mantle. Accessed 20 October 2011. Available from: http://mantlethought.org/content/fear-and-loathing-post-war-sri-lanka.

DFAT Report 1478, (28 February 2013). Department of Foreign Affairs and Trade Australia – Migration Review Tribunal Refugee Review Tribunal (MRT.RRT). Accessed 12 April 2013. Available from: http://dfat.gov.au/foi/downloads/dfat-foi-F580.pdf.

Mushtaq, M., (25 January 2012). ‘Rajapaksa: don’t let down guard against terror,’ Khabar South Asia. 25 March 2012. Available from: http://khabarsouthasia.com/en_GB/articles /apwi/articles/features/2012/01/25/feature-02.

Peer Reviewer4480 Opinion Agree with Comments
Peer Reviewer4480 Comments There is no publicly available defence policy. However, issues of military deployment and activity have been debated in Parliament and occasionally in other public fora – often anonymously for fear of reprisals.

Interview with security studies lecturer 03.10.2014

TI Reviewer4738 Opinion Agree with Comments
TI Reviewer4738 Comments Whilst the bulk of the comments hold true, it is important to note that the Rajapaksas fall from power has left, not a family, but a sole entity (new President Maithripala) at the helm of this system. No such amendments to the defence policies of the previous regime have been made as of yet.
Political 04. Do defence and security institutions have a policy, or evidence, of openness towards civil society organisations (CSOs) when dealing with issues of corruption? If no, is there precedent for CSO involvement in general government anti-corruption initiatives?
Score 0.0
Assessor Comments While there are several CSOs in Sri Lanka, reports indicate the Rajapaksa government regarded them in a negative light and as an obstruction to the work of the government. The previous government did not actively take their reports/recommendations into account. At times, the previous government has also tightened laws on finances to make it harder for NGOs to survive.

Until 2015, there have been reports that those CSOs that have sought to critically engage the government on policies that the GOSL has adopted concerning reconciliation and reconstruction have faced scrutiny from the GOSL in the form of investigations, audits, and negative press from the government and state-controlled media. Other CSOs have previously alleged receiving death threats against themselves and their families. A Report released by Amnesty International in 2013 details many such arrests, threats, and acts of violence perpetuated against journalists and members of civil society both during and after the war.

Previously, monitoring and/or investigations were carried out by security forces into the activities of CSOs and their funding sources, particularly concerning pro-Tamil and ‘peace support groups’ such as the National Peace Council, the Centre for Policy Alternatives, Tamil Rehabilitation Organization, Sri Lanka Press Institute, Peace Secretariat for Muslims. In the immediate aftermath of the war, for example, a number of CSO’s were summoned before a Parliamentary Select Committee and questioned about their activities, based on assertions that they had either collaborated with or supported the LTTE and/or were acting in a manner that represented a threat to national security. Such allegations point towards a larger process of ‘de-democratisation’ of the political process.

However, the political environment involving media and CSOs is definitely changing with the new government. Some indicators of progress:

(a) In January 2015, Irin news reported, &quoute;rights activists and other NGOs say there are already encouraging signs that they may have more freedom to work under the new administration, including in the former conflict zone in the north.&quoute; [6]
(b) When the new government drafted the FOI Act, it was made available for the people as part of a public consultation process. Media and CSOs were able to reflect on the proposed Act [7].
(c)The NGO Secretariat has been moved out of the MoD’s control [8]. Previously, Defence Ministry controlled the registration of both local and foreign NGOs [9].

There is still no evidence of engagement between defence institutions and CSOs. The new government is making positive steps towards anti-corruption (detailed in relevant Questions in the assessment) but nothing yet to evidence engagement with CSOs with this regard. The score has been selected accordingly.

Response to Peer Reviewers : Some of the comments and sources have been added to the assessment

Assessor Sources 1- &quoute;Geneva should not distract from the NGO menace&quoute;, Daily News, January 2014, http://www.dailynews.lk/?q=features/geneva-should-not-distract-ngo-menace

2- &quoute;New guidelines by the government in taxing NGOs&quoute;, Business Times, 14 August 2011, http://www.sundaytimes.lk/110814/BusinessTimes/bt40.html

3- ‘Sri Lanka’s Assault on Dissent,’ (2013). Amnesty International. Accessed 1 Feb 2013. http://www.amnesty.org/en/library/asset/ASA37/003/2013/en/338f9b04-097e-4381-t8903-1829fd24aabf/asa370032013en.pdf.

4- Uyangoda, J., (2010). ‘Politics of political reform – a key theme in the contemporary conflict,’ In Power and Politics in the Shadow of Sri Lanka’s Armed Conflict, edited by S. Bastian, S. Kottegoda, C. Orjuela, and, J. Uyangoda, Stockholm: Sida.

5- Oral update of the High Commissioner for Human Rights on promoting reconciliation, accountability and human rights in Sri Lanka (A/HRC/27/CRP.2), 22 September 2014, http://reliefweb.int/report/sri-lanka/oral-update-high-commissioner-human-rights-promoting-reconciliation-accountability

6- IRINnews, (2015). Sri Lanka’s NGOs test limits of new freedoms. [online] Available at: http://www.irinnews.org/report/101057/sri-lanka-s-ngos-test-limits-of-new-freedoms [Accessed 20 Sep. 2015].

7- Sri Lanka Brief, (2015). The Draft Right to Information Act of Sri Lanka | Sri Lanka Brief. [online] Available at: http://srilankabrief.org/2015/02/sri-lanka-right-to-information-act-draft/ [Accessed 20 Sep. 2015].
8- The Island, (2015). Maithripala Sirisena as President – 60 days. [online] Available at: TD, L. (2015). The Island. [online] Island.lk. Available at: http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=117969 [Accessed 20 Sep. 2015]. [Accessed 20 Sep. 2015].
9- Freedomhouse, (2014). Sri Lanka. [online] Available at: https://freedomhouse.org/report/freedom-world/2014/sri-lanka#.VY18IhtVhHx [Accessed 20 Sep. 2015].

Peer Reviewer4037 Opinion Agree with Comments
Peer Reviewer4037 Comments The political and legal environment in which civil society organisations (CSOs) function has become increasingly squeezed in the post-war years as legislation has been introduced to facilitate greater governmental control of civil society through various means, including tighter control of the receipt of foreign funding as well as political legislation and constitutional amendments passed by the GOSL that regulate and censor the kinds of activities that CSOs engage in, including with regards to involvement in government and anti-corruption initiatives.

For example, in the post-war period CSOs in the North have been required to obtain military permission in order to hold meetings and even informal gatherings in homes require governmental permission. Moreover, the government has been accused of resorting to a heavy-handed approach, including accusations of GOSL sanctioned police brutality, in responding to public protests that are critical of government policy or the victor’s peace.

Those CSOs that have sought to critically engage the government on policies that the GOSL has adopted concerning reconciliation and reconstruction have faced scrutiny from the GOSL in the form of investigations, audits, and negative press from the government and state-controlled media. Other CSOs have received death threats against themselves and their families A Report released by Amnesty International in 2013 details many such arrests, threats, and acts of violence perpetuated against journalists and members of civil society both during and after the war.

Other examples of a lack of defence and security openness toward CSOs pertains to monitoring or and investigations carried out by security forces into the activities of CSOs and their funding sources, particularly concerning pro-Tamil and ‘peace support groups’ such as the National Peace Council, the Centre for Policy Alternatives, Tamil Rehabilitation Organization, Sri Lanka Press Institute, Peace Secretariat for Muslims. In the immediate aftermath of the war, for example, a number of CSOs were summoned before a Parliamentary Select Committee and questioned about their activities, based on assertions that they had either collaborated with or supported the LTTE and/or were acting in a manner that represented a threat to national security. Such allegations represent a part of a larger process of ‘de-democratisation’ of the political process.

Sources:

‘Sri Lanka’s Assault on Dissent,’ (2013). Amnesty International. Accessed 1 Feb 2013. thttp://www.amnesty.org/en/library/asset/ASA37/003/2013/en/338f9b04-097e-4381-t8903-1829fd24aabf/asa370032013en.pdf.

Uyangoda, J., (2010). ‘Politics of political reform – a key theme in the contemporary tconflict,’ In Power and Politics in the Shadow of Sri Lanka’s Armed Conflict, edited by S. Bastian, S. Kottegoda, C. Orjuela, and, J. Uyangoda, Stockholm: Sida.

See also: http://rajivawijesinha.wordpress.com/2011/04/12/the-latest-concerns-about-ngo-activity/

http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=21160

Peer Reviewer4480 Opinion Agree with Comments
Peer Reviewer4480 Comments The state and especially the defence establishment seek to limit critical NGO and civil society activity as much as possible.

http://www.aljazeera.com/indepth/features/2014/09/sri-lanka-accused-trying-gag-ngos-201492263518312357.html

http://reliefweb.int/report/sri-lanka/oral-update-high-commissioner-human-rights-promoting-reconciliation-accountability

However, there is evidence of general CSO anti-corruption activity.

Interview with security studies lecturer 03.10.2014

TI Reviewer4738 Opinion Agree with Comments
TI Reviewer4738 Comments Whilst it is certain that there have been attempts to bring the government and CSO community to the same table, this has not been the case in the last year. With the new regime coming to power, the general distrust of the CSO community might be tamed; the new Prime Minister is decidedly &quoute;western-friendly&quoute; as opposed to the staunch opposition to westerners that the Rajapaksa regime maintained.
Political 05. Has the country signed up to international anti-corruption instruments such as, but not exclusively or necessarily, UNCAC and the OECD Convention? (In your answer, please specify which.)
Score 2.0
Assessor Comments Sri Lanka joined the ADB/OECD Anti-Corruption Initiative for Asia-Pacific on 27 March 2006 [1]. Sri Lanka ratified the UN Anti-Corruption Convention in 2004. Sri Lanka also ratified the UN Convention against Transnational Organized Crime in 2006 [5] although it does not appear to have ratified the Protocol against the Illicit Manufacturing of and Trafficking in Firearms, Their Parts and Components and Ammunition [6].

According to the evidence available, Sri Lanka has done very little towards implementation of these instruments. In the government’s annual performance report of 2012, it is mentioned that Sri Lanka’s Commission to Investigate Allegations of Bribery or Corruption initiated a ‘gap analysis’ in order to identify gaps between the UNCAC and Sri Lankan laws relating to corruption. However no further information is available about this study; also the UNCAC has not been legislated into law yet.

Assessor Sources 1- &quoute;ADB/OECD Anti-Corruption Initiative for Asia-Pacific welcomes Sri Lanka and Macao, China as 26th and 27th full members&quoute;, 17 May 2006, http://www.oecd.org/site/adboecdanti-corruptioninitiative/adboecdanti-corruptioninitiativeforasia-pacificwelcomessrilankaandmacaochinaas26thand27thfullmembers.htm

2. &quoute;Corruption&quoute; in 2013 Investment Climate Statement-Sri Lanka, US Department of State, http://www.state.gov/e/eb/rls/othr/ics/2013/204735.htm

3- Nihal Sri Ameresekere’s address at the Annual Seminar of the International Association of Anti-Corruption Authorities (IAACA) highlighted lack of UNCAC implementation in Sri Lanka, http://www.ft.lk/2012/07/13/nihal-makes-presentation-on-un-convention-against-corruption-2/ , 13 July 2013.

4- Annual Performance Report 2012, http://www.parliament.lk/uploads/documents/paperspresented/performance_report_ministry_of_external_affairs_2012.pdf, p.67

5- United Nations, Convention against Transnational Organized Crime signature and ratification status, as at 10 October 2015. https://treaties.un.org/pages/ViewDetails.aspx?src=TREATY&mtdsg_no=XVIII-12&chapter=18&lang=en

6- United Nations, Protocol against the Illicit Manufacturing of and Trafficking in Firearms, Their Parts and Components and Ammunition signature and ratification status, as at 10 October 2015. https://treaties.un.org/Pages/ViewDetails.aspx?src=TREATY&mtdsg_no=XVIII-12-c&chapter=18&lang=en

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Political 06. Is there evidence of regular, active public debate on issues of defence? If yes, does the government participate in this debate?
Score 1.0
Assessor Comments There were no public debates on the country’s national defence policy under the previous government headed by President Rajapaksa. The new government has made some commitments to improve media freedom [5]. With the downfall of the Rajapaksa regime and new pledges by President Sirisena, public interest in political matters is gaining traction. The following are some indicators of positive change:
(a) Questions over former defence secretary Gotabhaya Rajapaksa’s involvement in a private arms dealing firm and it’s ties to the Sri Lankan armed forces are being pursued by investigative journalists.
(b) When the new government drafted the FOI Act, it was made available for the people as part of a public consultation process. Media and CSOs were able to reflect on the proposed Act [5].

Other than a few positive indicators, the new government appears to stick to one-way disclosure of information in some cases. For example, the government is formulating a new National Security Plan but this has not been open to public debate nor discussion [6].

Delegates from the Defence Ministry do sometimes address gatherings at conferences or seminars at the Kothlewala defence university. Recent presentations have included topics on Sri Lanka’s defence strategy but based on the video recording of these talks it can be said they are not so much a &quoute;debate&quoute; as they are a one-sided talks.

Response to Peer Reviewer 2: Agree with comments, sources added to the existing list of references in the sources section.

Assessor Sources 1- &quoute;Military Presence In North and East In The Normalization Process&quoute;, The Sunday Leader, 13 October 2013, http://www.thesundayleader.lk/2013/10/13/military-presence-in-north-and-east-in-the-normalization-process/

2- Andi Schubert, &quoute;Victorious Victims: An Analysis of Sri Lanka’s Post-War Reconciliation Discourse&quoute;, March 2013, International Centre for Ethnic Studies, http://www.ices.lk/victorious-victims/

3- &quoute;Full Videos Of The Speeches Delivered At The ‘Defence Seminar 2013′&quoute;, Colombo Telegraph, 5 September 2013, https://www.colombotelegraph.com/index.php/full-videos-of-the-speeches-delivered-at-the-defence-seminar-2013/

4- Nirajan Rambukwella, &quoute;Sri Lanka’s National Security Silence -Threat or Defence&quoute; ColomboTelegraph, March 20, 2014, https://www.colombotelegraph.com/index.php/sri-lankas-national-security-silence-threat-or-defence/

5- Sri Lanka Brief, (2015). The Draft Right to Information Act of Sri Lanka | Sri Lanka Brief. [online] Available at: http://srilankabrief.org/2015/02/sri-lanka-right-to-information-act-draft/ [Accessed 20 Sep. 2015].
6- Daily FT, (2015). Comprehensive national security plan under preparation: President. [online] Available at: http://www.ft.lk/article/424941/Comprehensive-national-security-plan-under-preparation:-President [Accessed 20 Sep. 2015].

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree with Comments
Peer Reviewer4480 Comments The lack of public debate on defence issues in Sri Lanka is well established. See for example, Nirajan Rambukwella, &quoute;Sri Lanka’s National Security Silence -Threat or Defence&quoute; ColomboTelegraph, 2014

Sri Lanka’s National Security Silence: Threat Or Defence?

This was also confirmed in an interview with security studies lecturer 03.10.2014

TI Reviewer4738 Opinion Agree with Comments
TI Reviewer4738 Comments The new regime appears to be continuing this trend of one-way information disclosure; questions are unanswered and only selected and censored information is produced in the public domain.
Political 07. Does the country have an openly stated and actively implemented anti-corruption policy for the defence sector?
Score 0.0
Assessor Comments No publicly available sources of information/news reports/official announcements were found regarding anti-corruption policies for the Defence sector. There is no evidence that the incoming government has yet addressed this issue. It appears unlikely that a policy will be in existence soon, although at the time of research it had opened other anti-corruption investigations into projects developed under the previous administration.

Research indicates the outgoing President and Defence Secretary – who were also brothers – have had significant control over the defence sector and have allowed little independent or external interference. Press coverage has shown the government took a stance of denying that corruption in the defence sector was a problem, despite substantial media and academic evidence to the contrary, demonstrating no intention to adopt any anti-corruption policy.

For example, in a 2012 interview the former Defence Secretary was questioned on his failure to address well-identified corruption cases. His response highlights the level of denial of corruption in the sector and the government’s attitude towards handling corruption cases:

&quoute;It is easy to say – but when you go into detail it is not possible, especially in the military. The reason being – somebody can say one item purchased is not good somebody can say it is good. Anyway these are things that happened prior to my taking over. I don’t want to get involved and waste time on those things. It is not easy to go into these. Though the Justice Shirani Tilakawardene report has certain things, I heard a different story – So unless we again start a court of inquiry to go into these – certain allegations just cannot be proved. So it is not useful in my opinion. But I do take action on certain cases – even recently I sent a few officers out for some issues of corruption. You are referring to one officer but within this period a lot of officers have been charged and court martialed. Nevertheless, corruption in the military is now very much less. Procurement is not taking place… There is no point going into these old cases.&quoute;

Assessor Sources &quoute;Gotabaya Rajapaksa -Three Years Later&quoute;, The Sunday Leader, 27 May 2012, http://www.thesundayleader.lk/2012/05/27/gotabaya-rajapaksa-three-years-later/

&quoute;Military muscling: With the civil war long over, the armed forces are busy with beauty salons&quoute;, The Economist, 23 March 2013, http://www.economist.com/news/asia/21574035-civil-war-long-over-armed-forces-are-busy-beauty-salons-military-muscling

Zachariah Mampilly, &quoute;The nexus of militarisation and corruption in post-conflict Sri Lanka&quoute;, in: Corruption and Post-Conflict Peacebuilding: Selling the Peace? (ed. Dominik Zaum, Christine Cheng)

http://pages.vassar.edu/mampilly/files/2013/11/Sri-Lanka-Corruption.pdf

Peer Reviewer4037 Opinion Agree with Comments
Peer Reviewer4037 Comments See also:

Croft, Adrian. (29 January 2013). ‘Governments fall short in fighting defence corruption – survey’. Reuters. Accessed 10 October 2014. Available from: http://uk.reuters.com/article/2013/01/29/uk-defence-corruption-idUKBRE90S03F20130129.

‘70% of governments fail to protect against corruption in the defence sector.’ (29 January 2013). Transparency International. Accessed: 10 October 2014. Available from: http://www.transparency.org/news/pressrelease/70_of_governments_fail_to_protect_against_corruption_in_the_defence_sector.

Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Political 08. Are there independent, well-resourced, and effective institutions within defence and security tasked with building integrity and countering corruption?
Score 1.0
Assessor Comments There are no reports of any institution within the defence and security sector tasked with building integrity and countering corruption. Research found no evidence of an effective organisation to exercise oversight over defence matters in Sri Lanka, as the President has retained a degree of control over the working of the so-called independent bodies such as the Office of the Auditor General, and the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).

Although the CIABOC is supposed to be an independent body, research shows its appointments were controlled by outgoing President Rajapaksa, putting its effectiveness in question. Commentators have indicated it was largely monitored by President Rajapaksa during the previous government and operated with limited autonomy [1]. The 18th Constitutional Amendment, passed several months after he was re-elected in 2010, was criticised by the opposition and some journalists because it removed the independence of government oversight bodies such as CIABOC. This has since been repealed by the 19th Constitutional Amendment.

There is some indication that the new government is taking steps to set up independent anti-corruption organisations, as well as investigate corruption in the defence sector however. Anti-corruption was one of newly elected President Sirisena’s pledges and media reports indicate he has taken up some steps to revamp the CIABOC and set up a new independent commission to investigate bribery and corruption [4]. In February, President Sirisena formed a &quoute;Presidential Commission of Inquiry into Large Scale Corruption and Fraud&quoute; which was responsible for investigating corruption allegations against former defence secretary Gotabaya Rajapaksa [5]. In addition, the Prime Minister heads a new Anti-Corruption Committee [6] comprising of include legal and financial experts in addition to Police officials [6]. Foreign media have noted that only a handful of indictments have occurred to date however [7].

It is too early to assess the effectiveness of these new committees but it is an indication that the government is making progress in establishing appropriately-resourced organisations to probe corruption.

Assessor Sources 1 – Nirmala Kanangara, &quoute;Bribery Commission In Question!&quoute;, The Sunday Leader, 16 February 2014, http://www.thesundayleader.lk/2014/02/16/bribery-commission-in-question/

2- Asian Human Rights Commission, &quoute;Bribery & corruption in Sri Lanka’s public revenue system: An unholy nexus?&quoute; 15 December 2010, http://www.humanrights.asia/resources/journals-magazines/article2/0903/bribery-corruption-in-sri-lankas-public-revenue-system-an-unholy-nexus (an article highlighting the problem of lack of autonomy in the CIABOC)

3- &quoute;Sri Lanka’s constitutional amendment- Eighteenth Time Lucky&quoute;, The Economist, 9 Sept 2009, http://www.economist.com/node/16992141

4- Sunday Leader, (2015). CIABOC To Be Revamped. [online] Available at: http://www.thesundayleader.lk/2015/09/06/ciaboc-to-be-revamped/ [Accessed 20 Sep. 2015].

5- Telegraph Sri Lanka, (2015). Gota at Commission of Inquiry into Large Scale Corruption and Fraud. [online] Available at: http://telegraph.lk/news/gota-at-commission-of-inquiry-into-large-scale-corruption-and-fraud/ [Accessed 20 Sep. 2015].

6- Daily News, (2015). Large scale corruption to be investigated according to the law – PM | Daily News Online : Sri Lanka’s National News. [online] Available at: http://www.dailynews.lk/?q=local/large-scale-corruption-be-investigated-according-law-pm [Accessed 20 Sep. 2015].

7- Wall Street Journal, &quoute;Pressuring Sri Lanka for Peace&quoute;, 7 Oct 2015

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Political 09. Does the public trust the institutions of defence and security to tackle the issue of bribery and corruption in their establishments?
Score 2.0
Assessor Comments The Rajapaksa family which held government until January 2015, was perceived as controlling the defence sector and even having the ability to surmount the Supreme court [2]. People with legal knowledge seemed to be convinced that the anti-corruption laws in Sri Lanka are outdated [3], it appears that commoners are convinced that the military is the least corrupt [4]. According to the Global Corruption Barometer, 39% of respondents feel that parliament or legislation are corrupt in Sri Lanka and 13% felt the military was corrupt. Overall, 35% said that corruption has increased in Sri Lanka over the past years. [4] There were many news reports alleging corruption across various departments, including the defence establishment, in Sri lanka [1].

The new government has included anti-corruption as its mandate and has made visible progress in establishing commissions against corruption (see Question 8), launching investigations (including one against former Defence Secretary Gotabaya Rajapaksa [5]), abandoning Chinese contracts mired in corruption allegations [10], and drafting a freedom of information (FOI) Act[6].

It is unclear as to how much public perception has improved however. While the public has welcomed anti-corruption measures and investigations into allegations, there is still a lot of skepticism if the government can deliver on its commitment. Some opinions and articles have highlighted concerns that the current government may not differ substantially from the previous one:

(a) CSOs have voiced concerns about the Sirisena government’s decision to re-establish the Sri Lankan Press Council, a media regulatory body which gives the government powers to jail journalists in connection with their reporting [7].

(b) Although Sirisena’s election pledge was to end nepotism in the country, he has reportedly appointed members of his own family to government posts, including his brother appointed as Chairman of Sri Lanka Telecom, and his brother-in-law made in charge of public affairs of the Defence Ministry [8].
(c) Sirisena has promoted a former army chief previously jailed by Rajapaksa to the highest military rank in the country, in a move which was seen as political [9].
(d) Despite opening up the country to UN investigations into war crimes, these have repeatedly been delayed by the government [11].

Assessor Sources 1- Kumar David, &quoute;Lanka Needs An Anti-Corruption Movement&quoute;, Colombo Telegraph, 30 March 2014, https://www.colombotelegraph.com/index.php/lanka-needs-an-anti-corruption-movement/

2- &quoute;Defence Ministry Slams Supreme Court; Cheats Displaced People With SC approval&quoute;, Colombo Telegraph, 25 November 2013, https://www.colombotelegraph.com/index.php/defence-ministry-slams-supreme-court-cheats-displaced-people-with-sc-approval/

3- Nihal Sri Ameresekere, &quoute;Some Thoughts On UN Anti-Corruption Day&quoute;, 9th December 2012, https://www.colombotelegraph.com/index.php/some-thoughts-on-un-anti-corruption-day-9th-december-2012/

4- Global Corruption Barometer 2013, Transparency International, http://www.transparency.org/gcb2013/country/?country=sri_lanka

5-The New Indian Express, (2015). Former Defence Secretary Gotabaya Gets Interim Injunction Against Arrest. [online] Available at: http://www.newindianexpress.com/world/Former-Defence-Secretary-Gotabaya-Gets-Interim-Injunction-Against-Arrest/2015/05/13/article2812498.ece [Accessed 20 Sep. 2015].

6- FT Daily, (2015). A Whistleblower Protection Act needs to accompany proposed Freedom of Information Act. [online] Available at: http://www.ft.lk/article/386007/A-Whistleblower-Protection-Act-needs-to-accompany-proposed-Freedom-of-Information-Act [Accessed 20 Sep. 2015].

7- Committee to Protect Journalists, (2015). Sri Lanka moves to re-establish restrictive media regulatory body. [online] Available at: https://cpj.org/2015/07/sri-lanka-moves-to-re-establish-restrictive-media-.php [Accessed 20 Sep. 2015].

8- Taylor Dibbert, T. (2015). Sri Lanka: Can Sirisena Deliver on Reforms?. [online] The Diplomat. Available at: http://thediplomat.com/2015/04/sri-lanka-can-sirisena-deliver-on-reforms/ [Accessed 20 Sep. 2015].

9- The Guardian, (2015). Ex-army chief Sarath Fonseka, jailed for treason, made field marshal in Sri Lanka. [online] Available at: http://www.theguardian.com/world/2015/mar/23/ex-army-chief-sarath-fonseka-jailed-for-treason-made-field-marshal-in-sri-lanka [Accessed 20 Sep. 2015].

10- International Business Times UK, (2015). Sri Lanka’s new government to investigate Mahinda Rajapaksa corruption allegations. [online] Available at: http://www.ibtimes.co.uk/sri-lankas-new-government-investigate-mahinda-rajapaksa-corruption-allegations-1483812 [Accessed 20 Sep. 2015].

11- The Guardian, (2015). UN calls for Sri Lanka war crimes court to investigate atrocities. [online] Available at: http://www.theguardian.com/world/2015/sep/16/un-seeks-special-court-to-investigate-sri-lanka-war-atrocities [Accessed 8 October 2015]

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree with Comments
TI Reviewer4738 Comments Through our discussions and interviews, we understood that even though public official rhetoric often addressed corruption, little is ever done to actually alleviate its symptoms. This is a case of public officials vying for government on issues that appeal to the public yet failing to deliver when in power. This rhetoric is not seriously intended.

But it is true that the military is perceived to be the least corrupt institution.

Political 10. Are there regular assessments by the defence ministry or another government agency of the areas of greatest corruption risk for ministry and armed forces personnel, and do they put in place measures for mitigating such risks?
Score 0.0
Assessor Comments No information is available to indicate whether any corruption risk assessment has been carried out by the Defence Ministry in Sri Lanka.

There are also no reports about the willingness to initiate efforts to assess risk of corruption within the defence department. It appears highly unlikely that this occurred during the previous administration (see also Q7). The government has launched wider investigations into public sector corruption during the previous administration, although foreign media have commented on the limited evidence of indictments to date.

Assessor Sources &quoute;Gotabaya Rajapaksa -Three Years Later&quoute;, The Sunday Leader, 27 May 2012, http://www.thesundayleader.lk/2012/05/27/gotabaya-rajapaksa-three-years-later/

International Business Times UK, (2015). Sri Lanka’s new government to investigate Mahinda Rajapaksa corruption allegations. [online] Available at: http://www.ibtimes.co.uk/sri-lankas-new-government-investigate-mahinda-rajapaksa-corruption-allegations-1483812 [Accessed 20 Sep. 2015].

Wall Street Journal, (2015). Pressuring Sri Lanka for Peace. [online] Available at: http://www.wsj.com/articles/pressuring-sri-lanka-for-peace-1444240374 [Accessed 10 Oct. 2015].

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Political 11. Does the country have a process for acquisition planning that involves clear oversight, and is it publicly available?
Score 0.0
Assessor Comments Defence acquisition is not clearly defined. No information was available about capability gaps and procurement needs, meaning it is not possible to establish whether these are clearly identified. The websites of the Army, Navy and the Air Force do not identify nor quantify requirements publicly.

There is also a lack of clarity over accountability and oversight of procurement. The Office of the Chief of Defence Staff is responsible for the co-ordination between the military and the Ministry of Defence (MoD), which means that it would play a pivotal role in needs assessment and procurement planning. However, no data is published about this.

Response to TI Chapter Reviewer: No public information to verify the protocols mentioned. There is no information available in the National Procurement Agency guidelines either. Score maintained.

Assessor Sources 1- Chief of Defence Staff Act, Government of Sri Lanka, 2009, Act no.34, p.4, http://documents.gov.lk/Acts/2009/Chief%20of%20%20Defence%20Staff%20Act%20No.%2035/ActNo.35E.pdf

2- &quoute;Procurement&quoute; under Country Assessment – Sri Lanka, IHS Jane’s Sentinel, 2013, accessed 1 May 2014.

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Disagree
TI Reviewer4738 Suggested Score 1
TI Reviewer4738 Comments Whilst it is certainly true that no information on procurement and capability gaps are made public, there are in force particular protocols that compel the Joint Operations Commands and the Military to submit their requirements for Parliamentary Debate.

The proceedings of the debate are not made public, not out of the existence of a secrecy act, but because of the public’s aversion to questioning such matters. Interviewees have disclosed that even few journalists care to pursue any such information regarding defence procurement.

However, with the downfall of the Rajapaksa regime, we are seeing such public interest gaining traction. Questions over the ex-Presidents brother, Gotabhaya Rajapaksa, and his involvement in a private arms dealing firm and it’s ties to the Sri Lankan armed forces are being pursued by investigative journalists right now.

Political 12A. Is there a legislative committee (or other appropriate body) responsible for defence budget scrutiny and analysis in an effective way, and is this body provided with detailed, extensive, and timely information on the defence budget?
Score 1.0
Assessor Comments The Parliamentary Public Accounts Committee (PAC) [6] scrutinizes the defence budget. Based on budget estimates [1] , it appears that detailed, extensive and timely information is provided by the Ministry of Defence. It is not clear, however, if complete information is provided. The PAC reviews budget accounts and can call on the armed forces chief and the Defence secretary to discuss them but these meetings are not open to the public. However, real scrutiny of the defence budget occurs in Parliament and it is not clear how effective this is.

Previously, the Rajapaksa government appeared to maintain tight control of the defence sector (as established in previous comments and the country brief). There have been no changes in the process since the new government came into power, there are no indications or stated intentions of the new government to increase scrutiny of defence budgets.

(Relevant information provided by the TI Chapter Reviewer has been incorporated in the main answer)

Assessor Sources 1- Budget Estimates available for download from http://www.treasury.gov.lk/budget-estimates/budget-estimates-2013.html, accessed 14 May 2014

2- Budget Estimate-2014, Ministry of Defence and Urban Development, pp.342-359, available from the Ministry of Public Finance at http://www.treasury.gov.lk/images/depts/nbd/docs/budgetestimates/2014/headlist/103/103.pdf (this lists all departments under the Ministry of Defence)

3- Budget Estimate – 2014, &quoute;Sri Lanka Army&quoute; under Ministry of Defence and Urban Development, pp.360 – 365, available from the Ministry of Public Finance at http://www.treasury.gov.lk/images/depts/nbd/docs/budgetestimates/2014/headlist/103/222.pdf

4- Budget Estimate – 2014, &quoute;Sri Lanka Navy&quoute; under Ministry of Defence and Urban Development, pp.366-371, available from the Ministry of Public Finance at, http://www.treasury.gov.lk/images/depts/nbd/docs/budgetestimates/2014/headlist/103/223.pdf

5- Budget Estimate – 2014, &quoute;Sri Lanka Air Force&quoute; under Ministry of Defence and Urban Development, pp.372 – 379, http://www.treasury.gov.lk/images/depts/nbd/docs/budgetestimates/2014/headlist/103/224.pdf

6- Public Accounts Committee, http://www.parliament.lk/en/component/committees/commitee/showCommittee?id=8, accessed 20 September 2015

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree with Comments
Peer Reviewer4480 Comments The Public Accounts Committee, contrary to the practice of many Commonwealth jurisdictions, is chaired by a government MP – currently in Sri Lanka’s case the Deputy Minister of Finance. See the following links for details:

The Committee on Public Accounts, First Report (7th Parliament), July 2013; http://parliament.lk/uploads/comreports/1387371171006053.pdf

http://www.treasury.gov.lk/contact-us/3-hon-dr-sarath-amunugama.html

TI Reviewer4738 Opinion Agree with Comments
TI Reviewer4738 Comments The Public Accounts Committee (PAC) reviews budget accounts and can call on the armed forces chief and the Defence secretary to discuss them but these meetings are not open to the public. However, real scrutiny of the defence budget occurs in Parliament and only Parliamentary elements may influence the decisions and proposals regarding defence expenditure.
Political 12B. Is the approved defence budget made publicly available? In practice, can citizens, civil society, and the media obtain detailed information on the defence budget?
Score 2.0
Assessor Comments The defence budget is publicly available but not easily accessible by citizens as it is not directly available on the Ministry of Defence website. Budget details are available for download from the Department of National Budget under the Ministry of Public Finance and includes a detailed breakdown of a large number of expenses, minus a few aspects such as disposal of assets. The media can freely access the report.

Press releases about the defence budget from the Ministry of Defence do not include any detailed information.

Information on the defence budget is available and the media and other civil society do comment on budget reports. However, the Government and Ministry of Defence do not generally comment on the budget and when authorities have sought to justify high defence budgets in the past in the post-war period they have tended to fall back on accusations that defeated rebel groups may seek to re-group and high defence spending is necessary to guard against this potential ‘threat’, although little evidence exists which suggests that such a threat exists or is imminent [3].

Response to Peer Reviewer 1: Comment from peer reviewer 1 have been added to the assessment.

Response to Peer Reviewer 2: While comments from reviewer 2 are relevant, they have been kept out of the assessment for two reasons: the assassinations mentioned are not directly linked to accessing information about &quoute;budget&quoute; specifically. Secondly, the assessment has been made with the most recent information available (i.e since the publication of the Government Defence Anti-Corruption Index assessment of Sri Lanka in 2013) and the situation has become better since then, so older events (like threats in 2007) have been omitted.

Assessor Sources 1- Budget Estimates available for download from http://www.treasury.gov.lk/budget-estimates/budget-estimates-2013.html, accessed 14 May 2014

2- Budget Estimate-2014, Ministry of Defence and Urban Development, pp.342-359, available from the Ministry of Public Finance at http://www.treasury.gov.lk/images/depts/nbd/docs/budgetestimates/2014/headlist/103/103.pdf (this lists all departments under the Ministry of Defence)

3- ‘Sri Lanka Raises defence Budget Despite Foreign Pressure.’ (21 October 2013). Agence France-Presse. Available from: http://www.defencenews.com/article/20131021/DEFREG03/310210043/Sri-Lanka-Raises-defence-Budget-Despite-Foreign-Pressure.

4. Transparency International, Government Defence Anti-Corruption Index, Sri Lanka Assessment, 2013, http://government.defenceindex.org/sites/default/files/documents/GI-assessment-Sri-Lanka.pdf

Peer Reviewer4037 Opinion Agree with Comments
Peer Reviewer4037 Comments Information on the defence budget is available and media etc. do comment on the report. However, the Government and Ministry of Defence do not generally comment on the budget and when authorities have sought to justify high defence budgets in the past in the post-war period they have tended to fall back on accusations that defeated rebel groups may seek to re-group and high defence spending is necessary to guard against this potential ‘threat’, although little evidence exists which suggests that such a threat exists or is imminent.

See for example:

‘Sri Lanka Raises defence Budget Despite Foreign Pressure.’ (21 October 2013). Agence France-Presse. Available from: http://www.defencenews.com/article/20131021/DEFREG03/310210043/Sri-Lanka-Raises-defence-Budget-Despite-Foreign-Pressure.

Peer Reviewer4480 Opinion Agree with Comments
Peer Reviewer4480 Comments While theoretically media and civil society can request information from the Ministry of Defence, in practice fear of reprisals and harassment prevents such requests. Sri Lanka is one of the least safe places in the world to be a journalist: according the Committee for the Protection of Journalists Sri Lanka is the fourth most dangerous place in the world to be a journalist.

http://cpj.org/reports/2013/05/impunity-index-getting-away-with-murder.php

Furthemore, all three of Sri Lanka’s leading defence correspondents have been severely repressed. Dharmalingam Sivaram was assasinated. Keith Noyahr was abducted and assaulted. Iqbal Athas was forced to leave the country after death threats and grenade attacks on his house. While assassinations have stopped, the climate of fear remains with civil society leaders often being followed and receiving death threats. See

Mark Whittaker, Learning Politics from Sivaram, Pluto Press. 2007.

http://blogs.telegraph.co.uk/news/peterfoster/3627101/The_price_of_truth_in_Sri_Lanka/

WikiLeaks: Gota Angry With Editors Lalith Allahakkon And Iqbal Athas

http://www.thesundayleader.lk/20090503/spotlight.htm

http://www.ibanet.org/Article/Detail.aspx?ArticleUid=39648b5e-489b-4634-a530-558464f9502f

TI Reviewer4738 Opinion Agree
Political 12. Is the defence budget transparent, showing key items of expenditure? This would include comprehensive information on military R&D, training, construction, personnel expenditures, acquisitions, disposal of assets, and maintenance.
Score 2.0
Assessor Comments The National Budget Department of the Ministry of Public Finance, publishes budget estimates as requested by each Ministry, including the Defence Ministry.

For the Budget Estimate, the Ministry for Defence provides a detailed breakdown of planned expenditures of all of its services including the Army, Navy, Air Force, Intelligence Service, Coast guard, Kothlewala Defence University etc.

The breakdown does not include disposal of assets and training but includes all other aspects like construction, personnel expenses, acquisitions, maintenance, travel expenses etc. The details are transparent including mentions of funding sources, credit lines etc. However, there is no way of knowing if the information is complete as end-of-year financial statements are not as detailed as the Budget Estimates are.

Assessor Sources 1- Budget Estimate-2014, Ministry of Defence and Urban Development, pp.342-359, available from the Ministry of Public Finance at http://www.treasury.gov.lk/images/depts/nbd/docs/budgetestimates/2014/headlist/103/103.pdf (this lists all departments under the Ministry of Defence)
t
2- Budget Estimate – 2014, &quoute;Sri Lanka Army&quoute; under Ministry of Defence and Urban Development, pp.360 – 365, available from the Ministry of Public Finance at http://www.treasury.gov.lk/images/depts/nbd/docs/budgetestimates/2014/headlist/103/222.pdf
t
3- Budget Estimate – 2014, &quoute;Sri Lanka Navy&quoute; under Ministry of Defence and Urban Development, pp.366-371, available from the Ministry of Public Finance at, http://www.treasury.gov.lk/images/depts/nbd/docs/budgetestimates/2014/headlist/103/223.pdf
t
4- Budget Estimate – 2014, &quoute;Sri Lanka Air Force&quoute; under Ministry of Defence and Urban Development, pp.372 – 379, http://www.treasury.gov.lk/images/depts/nbd/docs/budgetestimates/2014/headlist/103/224.pdf
Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Political 13. Are sources of defence income other than from central government allocation (from equipment sales or property disposal, for example) published and scrutinised?
Score 1.0
Assessor Comments Budget details are available for download from the Department of National Budget under the Ministry of Public Finance [1]. The report is divided with details provided for each division under the Ministry of Defence. This includes some details of income other than from central government allocation such as foreign loans, foreign grants, and foreign lines of credit.

There are no details of income from equipment sale or property disposal. This information is also not available in the Ministry of Defence’s annual Financial Statements either. Limited revenue details are available from irregular Auditor-General’s reports. Based on the 2013 report [5], the audit appears to have covered accounts of all three services, and civil security agencies. It includes aggregates but it raised [pp.88-89] some accounting discrepancies and problems with disclosure from the MoD:

(a) &quoute;All revenue… such as the sale of farm produce to outside parties, hire of musical groups, received from restaurants, welfare trade stalls, barber/tailoring services, sale of produce of camp premises, canine displays, aircraft and ship operations, revenue received from repairs to aircrafts and ships and all other revenue earned by deploying Government property&quoute; were not credited to Consolidates Fund (as per Cabinet decision) but were instead maintained for Welfare of Officers. The AG noted problems with information disclosure related to revenues- &quoute;Even though the information on the revenue so collected was called for, such information had not been made available to audit.&quoute;

(b) Revenue from land released for the development of the Hotel Industry were not credited to Public Revenue (in accordance with Article 149 of the constitution). It was instead retained in a bank account of the MoD.

It is not clear how much information the AG receives about military-run business. See, for example source 4.

The new government has proposed a new independent &quoute;National Audit Commission&quoute; as part of the 19th amendment[6]; this received cabinet approved in April 2015 [7]. It is not clear as to how this commission would be set up and how far it would have access to information from the defence sector.

Response to Peer Reviewer 2: Comments and sources are informative, they have been added to the assessment.

Assessor Sources 1- Budget Estimate – 2014, Ministry of Defence and Urban Development, pp.342-359, available from the Ministry of Public Finance at http://www.treasury.gov.lk/images/depts/nbd/docs/budgetestimates/2014/headlist/103/103.pdf (this lists all departments under the Ministry of Defence)

2- Budget Estimate – 2014, &quoute;Sri Lanka Army&quoute; under Ministry of Defence and Urban Development, pp.360 – 365, available from the Ministry of Public Finance at http://www.treasury.gov.lk/images/depts/nbd/docs/budgetestimates/2014/headlist/103/222.pdf

3- Budget Estimate – 2014, &quoute;Sri Lanka Navy&quoute; under Ministry of Defence and Urban Development, pp.366-371, available from the Ministry of Public Finance at, http://www.treasury.gov.lk/images/depts/nbd/docs/budgetestimates/2014/headlist/103/223.pdf

4- &quoute;Deployment Of Floating Armouries – Rakna Arakshaka Lanka Limited&quoute;, Sri Lankan Guardian, 14 November 2012, http://www.srilankaguardian.org/2012/11/deployment-of-floating-armouries-rakna.html

5- Audit Report for the Ministry of Defence, 2013, http://www.auditorgeneral.gov.lk/web/upload/Annual%20report%13-Part%20V-E.pdf

6- EconomyNext, (2015). Fresh questions over Sri Lanka budget deficit, national debt numbers. [online] Available at: http://www.economynext.com/news_details_print.php?id=2136 [Accessed 21 Sep. 2015].

7- Daily News, (2015). RTI and National Audit Bill get Cabinet approval. [online] Available at: http://www.dailynews.lk/?q=local/rti-and-national-audit-bill-get-cabinet-approval [Accessed 21 Sep. 2015].

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree with Comments
Peer Reviewer4480 Comments Limited revenue details are available from irregular Auditor-General’s reports. For example, see Section 1.3 &quoute;Revenue&quoute; in the 2009 Audit Report for the Ministry of Defence (the latest publicly available report).

http://www.auditorgeneral.gov.lk/web/upload/2006-1-VII-Ministries%20and%20Departments-English.pdf

Moreover, reporting of income from military run businesses is unclear. See, for example

http://www.srilankaguardian.org/2012/11/deployment-of-floating-armouries-rakna.html

TI Reviewer4738 Opinion Agree with Comments
TI Reviewer4738 Comments In a TISL interview with an expert in Sri Lankan defence affairs, it was understood that the previous regime did not disclose information pertaining to the sale of equipment or property disposal and that the treasury scrutinizes all avenues of defence income, by way of review by specially appointed cabinet committees, but these findings are not disclosed to the public. National security is cited as the reason for this information not being made public.

However, with the change in government, the public is now being exposed to the controversial arms deals of the previous regime; deals that managed to evade discovery due to being allegedly perpetrated by members of the ruling class and military. Defence income during the last regime then was misrepresented in official reports, reportedly allowing for the ruling family to siphon off vast sums from illegal arms trade.

Political 14. Is there an effective internal audit process for defence ministry expenditure (that is, for example, transparent, conducted by appropriately skilled individuals, and subject to parliamentary oversight)?
Score 1.0
Assessor Comments There are mentions of internal audit departments within the Army, Air Force, and the Ministry of Defence. Other than sources indicating that there is capacity for internal audits, there are no reports/public evidence about their audits or their functioning.

Source 4 makes a reference to the Internal Audit department of the MoD; Source 2 refers to the Army Directorate of Internal Audit; and source 3 indicates the existence of an internal audit team for the Air Force. There were no such publicly available references found for the Navy.

Response to Peer Reviewer 2: Comments and score accepted. Internal audit information researched further alongside peer review comments and assessment amended accordingly.

Assessor Sources 1- &quoute;Army Audit Team detects fraud&quoute;, Army press release, 23 May 2013 http://www.army.lk/detailed.php?NewsId=6267

2- &quoute;Army is Now More People-Oriented with Sound Human Resource Training’ Says Executive Member in IPM Council&quoute;, Army Press Release, 7 November 2011, http://www.army.lk/detailed.php?NewsId=3477

3- Sri Lanka Air Force website, Clerk Accounts, http://airforce.lk/pages.php?pages=clerk_accounts

4- &quoute;The Graduation Ceremony of DSCSC – 2011&quoute;, December 2011, Defence Services Command and Staff College of Sri Lanka, http://www.dscsc.lk/index.php/the-college-crest-motto/16-contactus/187-the-graduation-ceremony-of-dscsc-2011

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Disagree
Peer Reviewer4480 Suggested Score 1
Peer Reviewer4480 Comments The Auditor-General does publish extremely basic reports auditing the Ministry of Defence (which are often years late). This reports are very limited in their scope and depth. For example, see

http://www.auditorgeneral.gov.lk/web/upload/2009_first_Instalmen_Part_IX_Min_Dept_Eng.pdf

However, legislative scrutiny of these reports is cursory. As noted earlier, the chairman of the Public Accounts Commitee, contrary to convention, is a government minister. Moreover, the Public Accounts Committee’s proceedings are not open to the public.

http://parliament.lk/uploads/comreports/1387371171006053.pdf#page=1

TI Reviewer4738 Opinion Agree
Political 15. Is there effective and transparent external auditing of military defence expenditure?
Score 1.0
Assessor Comments The Office of the Auditor General (OAG) audits the Ministry of Defence’s expenditures and compiles a report (which is often years late). These reports are very limited in their scope and depth. A parliamentary accounts committee reviews the Auditor General’s report as well as the Financial Statement provided by the Ministry itself.

However, legislative scrutiny of these reports is cursory. As noted earlier, the chairman of the Public Accounts Committee, contrary to convention, is a government minister. Moreover, the Public Accounts Committee’s proceedings are not open to the public.

The auditors undertaking the task are understood to be skilled however, there are reports doubting the level of autonomy that they enjoy in the process. This is due to the fact that the President is in charge of appointing/dismissing the Auditor General. In September 2010, the Rajapaksa government reduced the independence and autonomy of the Auditor General by passing 18 amendments to the Sri Lankan constitution whereby this allowed the President the right to appoint Auditor Generals.

As mentioned in previous questions, the passing of the 19th Constitutional Amendment which reversed these powers. The new government has stated that after parliamentary re-elections (held in August), a new Act would be enacted to govern the roles and responsibilities of the OAG.

Response to Peer Reviewer 2: Information and sources added and score raised from 0 to 1.

Assessor Sources 1- Scope of the Auditor General, website of the Office of the Auditor General, http://www.auditorgeneral.gov.lk/web/index.php?option=com_content&view=article&id=106&Itemid=87&lang=en
,accessed on 2 May 2014

2- Parliament Accounts Committee,

http://www.parliament.lk/en/component/committees/commitee/showCommittee?id=8, accessed on 2 May 2014

3- Gulbin Sultana, &quoute;18th Amendment: Making a Mockery of Democracy in Sri Lanka&quoute;, Institute for Defence Studies and Analysis, 7 October 2010, http://www.idsa.in/idsacomments/18thAmendmentMakingaMockeryofDemocracyinSriLanka_gsultana_071010

4 – The Sunday Times, &quoute;New law to provide more powers to Auditor General to ensure stringent state tender procedures &quoute;, August 2 2015, http://www.sundaytimes.lk/150802/business-times/new-law-to-provide-more-powers-to-auditor-general-to-ensure-stringent-state-tender-procedures-159020.html

5 – Daily Mirror, &quoute;President takes on corrupt accounting and audit practices&quoute;, 28 July 2015, http://www.dailymirror.lk/81203/president-takes-on-corrupt-accounting-and-audit-practices

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Disagree
Peer Reviewer4480 Suggested Score 1
Peer Reviewer4480 Comments The Auditor-General does publish extremely basic reports auditing the Ministry of Defence (which are often years late). This reports are very limited in their scope and depth. For example, see

http://www.auditorgeneral.gov.lk/web/upload/2009_first_Instalmen_Part_IX_Min_Dept_Eng.pdf

The Auditor-General, post reform of the Constitution in 2010 (18th Amendment), is appointed by the President., who is also the Minister of Defence.

http://www.auditorgeneral.gov.lk/web/index.php?option=com_content&view=article&id=107&Itemid=54&lang=en

However, legislative scrutiny of these reports is cursory. As noted earlier, the chairman of the Public Accounts Commitee, contrary to convention, is a government minister. Moreover, the Public Accounts Committee’s proceedings are not open to the public.

http://parliament.lk/uploads/comreports/1387371171006053.pdf#page=1

TI Reviewer4738 Opinion Agree
Political 16. Is there evidence that the country’s defence institutions have controlling or financial interests in businesses associated with the country’s natural resource exploitation and, if so, are these interests publicly stated and subject to scrutiny?
Score 1.0
Assessor Comments There are no publicly available news reports directly connecting the defence forces to instances of resource exploitation. However it must be noted that the Navy and Army own large territories of land and water in Sri Lanka, which in itself could be considered as resource exploitation or can give way to more direct forms of exploitation. Troops perform various roles across these areas including – reconstruction, fisheries protection, guarding of limestone mines in the North etc.

The Exclusive Economic Zone (EEZ) is also rich in hydrocarbons [2] and fish. It is not clear if the Navy/Coast Guard get a share of any drilling/fishing activity in the region. Considering that several ministries fall under the control of the President and his family, it is likely that there may be exist a nexus between the military and the country’s natural resources.

There have also been media reports and allegations that President Rajapaksa and his family stood to receive monetary commissions and lucrative contracts relating to (re)construction contracts and investment, particularly foreign investments from Chinese companies into Sri Lanka. If true then this perhaps suggests that a strong nexus likely existed concerning the military and the MOD, under Gotabaya Rajapaksa, and the country’s development and exploitation of natural resources. See for example, source 3.

A website representing the Tamil population alleged in 2011 that the military had a role in limestone quarrying see source 4 (censored in Sri Lanka).

It is unclear how these issues have been addressed by the new government.

Response to Peer Reviewer 2: Suggested sources and comments added to existing assessment.

Assessor Sources 1- Gautum Sen, &quoute;The issue of de-militarisation of Northern Province of Sri Lanka&quoute;, Institute for Defence Studies and Analysis, 13 March 2013, http://www.idsa.in/idsacomments/TheissueofdemilitarisationofNorthernProvinceofSriLanka_gsen_130314

2- Wass Perera, &quoute;Maritime Strategy for Sri Lanka for Management of Resources in the Exclusive Economic Zone&quoute;, Kothlewala Defence University, http://www.kdu.ac.lk/faculty-of-graduate-studies/images/pdf/Research/13.pdf

3- Sharma, Rajeev. (27 October 2012). ‘Rajapaksa Family Stands To Receive In Commission Anywhere Between US$1.2 To US$ 1.8 Billion During 2005-15 – China’s Foray in Sri Lanka.’ Colombo Telegraph. Available from: https://www.colombotelegraph.com/index.php/rajapaksa-family-stands-to-receive-in-commission-anywhere-between-us1-2-to-us-1-8-billion-during-2005-15/

4- &quoute;‘SL military appropriated 30% of land in Jaffna’&quoute;, 17 December 2011, http://www.tamilnet.com/art.html?catid=79&artid=34706

Peer Reviewer4037 Opinion Agree with Comments
Peer Reviewer4037 Comments There have also been allegations that President Rajapaksa and his family stand to receive monetary commissions and lucrative contracts relating to (re)construction contracts and investment, particularly foreign investments from Chinese companies into Sri Lanka. This indeed suggests that a strong nexus likely exists concerning the military and MOD, under Gotabaya Rajapaksa, and the country’s development and exploitation of natural resources.

See for example:

Sharma, Rajeev. (27 October 2012). ‘Rajapaksa Family Stands To Receive In Commission Anywhere Between US$1.2 To US$ 1.8 Billion During 2005-15 – China’s Foray in Sri Lanka.’ Colombo Telegraph. Available from: https://www.colombotelegraph.com/index.php/rajapaksa-family-stands-to-receive-in-commission-anywhere-between-us1-2-to-us-1-8-billion-during-2005-15/

Peer Reviewer4480 Opinion Agree with Comments
Peer Reviewer4480 Comments For further details on the military’s role in limestone quarrying see (censored in Sri Lanka):

http://www.tamilnet.com/art.html?catid=79&artid=34706

Also see http://www.tamilnet.com/art.html?catid=13&artid=34858 for reports of military influence on sand-mining.

TI Reviewer4738 Opinion Agree
Political 17. Is there evidence, for example through media investigations or prosecution reports, of a penetration of organised crime into the defence and security sector? If no, is there evidence that the government is alert and prepared for this risk?
Score 0.0
Assessor Comments There are allegations of a nexus between police-military-criminals-drug dealers that is difficult to distinguish. It can be said, on the basis of evidence available, that some defence officials or army personnel have engaged in organised crime but it is hard to pin-point who specifically is involved as little is done to investigate these connections. Many times, the motive behind police crackdowns has also been questioned – it has been speculated that they are not always done to make society safer but in order to rid competitors, so as to make matters easier for certain senior officials involved in organised criminal activities.

It is reported that a section of police personnel including top officials receive huge kickbacks from drug dealers and bootleggers with the proliferation of drugs and illicit hooch in and around resorts [1]. In addition, there are reports of Army deserters being recruited by underworld gangs [2]. (It must be noted that several law enforcement agencies in Sri Lanka fall under the Ministry of Defence) [3]

The previous government’s ally Jathika Hela Urumaya (JHU) had accused the then Prime Minister of being involved in drug trade and urged a UNP parliamentarian to name and identify the parliamentarians who are involved in drug trafficking to protect the dignity of the Sri Lankan Parliament [4].

It is unclear whether any action has been taken by the new government to increase capacity to tackle this issue.

Assessor Sources 1- &quoute;Drug threat looming large in resorts&quoute;, The Island, 14 May 2014, http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=103301
t
2- &quoute;Southern underworld enlists army deserters&quoute;, The Nation, 27 January 2013, http://www.nation.lk/edition/news-features/item/15100-southern-underworld-enlists-army-deserters.html

3- Interpol, Sri Lanka, http://www.interpol.int/Member-countries/Asia-South-Pacific/Sri-Lanka

4- &quoute;Biggest drug haul: Kick the habit, no more political chits&quoute;, Sunday Times, 22 December 2013, http://www.sundaytimes.lk/131222/news/biggest-drug-haul-kick-the-habit-no-more-political-chits-77440.html

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Political 18. Is there policing to investigate corruption and organised crime within the defence services and is there evidence of the effectiveness of this policing?
Score 2.0
Assessor Comments The Army is policed by the Military Police [5], the Navy’s Provost branch performs a similar function policing function and maintains discipline of naval personnel [6]; there appears to be a similar provost role in the Air Force has as well as per the Air Force act [7]. Sri Lanka also has a system of military courts [4]. There is no evidence of the system functioning independently or effectively.

There is the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) but its autonomy was questioned under the Rajapaksa government. The new government has proposed to revamp the CIABOC and set up a new independent commission to investigate corruption, the committee was yet to be formed at the time of writing this assessment [9]

The Criminal Investigations Department (CID) and the Frauds and Corruption Investigations Division (FCID) can also have an investigative role in corruption cases, as seen in the investigation of former defence secretary Gotabaya Rajapaksa [8]. However, the CID and FCID are mostly civilian organisations in charge of crime, and fraud in general.

There is some evidence of CIABOC effectiveness including a raid in February which resulted in the arrest of a soldier for accepting a bribe of Rs10,000 [10]. In addition, the recent investigation of former defence secretary [8] is also a case in point.

Response to Peer Reviewer 2: Comments found relevant. Assessment amended accordingly. Score changed to 2.

Assessor Sources 1- Nirmala Kanangara, &quoute;Bribery Commission In Question!&quoute;, The Sunday Leader, 16 February 2014, http://www.thesundayleader.lk/2014/02/16/bribery-commission-in-question/

2- Mampilly Zachariah (2011), &quoute; The nexus of MIlitarisation and Corruption in Post-conflict Sri Lanka&quoute;, p.85-87

3- &quoute;From the Floor – Cope reports and shirking responsibility&quoute;, The Island, 13 October 2013, http://www.nation.lk/edition/politics/item/21876-from-the-floor-cope-reports-and-shirking-responsibility.html (accessed on 15 August 2014).

4- Ministry of Defence, Army Act, http://www.defence.lk/main_pub.asp?fname=armyact (system of military courts evident from here)

5- Sri Lanka Corps of Military Police (SLCMP), http://www.army.lk/slcmp
6- Navy Provost branch, http://www.navy.lk/branches-and-ranks.html#
7- Ministry of Defence, Air Force Act, http://www.defence.lk/main_pub.asp?fname=airfact
8- The New Indian Express, (2015). Former Defence Secretary Gotabaya Gets Interim Injunction Against Arrest. [online] Available at: http://www.newindianexpress.com/world/Former-Defence-Secretary-Gotabaya-Gets-Interim-Injunction-Against-Arrest/2015/05/13/article2812498.ece [Accessed 20 Sep. 2015].
9- Sunday Leader, (2015). CIABOC To Be Revamped. [online] Available at: http://www.thesundayleader.lk/2015/09/06/ciaboc-to-be-revamped/ [Accessed 20 Sep. 2015].
10- R11 / 2015 &quoute;Detection and Raids&quoute;, CIABOC, 27 February 2015, http://www.ciaboc.gov.lk/web/index.php?option=com_content&view=category&layout=blog&id=34&Itemid=2&lang=en&limitstart=5

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Disagree
Peer Reviewer4480 Suggested Score 2
Peer Reviewer4480 Comments The Army is policed by the Military Police: http://www.army.lk/slcmp/. The Navy’s Provost branch performs a similar function http://www.navy.lk/branches-and-ranks.html#. In the case of the Air Force see the role of the Provost Marshal http://www.defence.lk/main_pub.asp?fname=airfact.

Sri Lanka also has a system of military courts: http://www.defence.lk/main_pub.asp?fname=armyact

There is no evidence of the system functioning independently or effectively.

TI Reviewer4738 Opinion Agree
Political 19. Are the policies, administration, and budgets of the intelligence services subject to effective, properly resourced, and independent oversight?
Score 1.0
Assessor Comments The previous government had maintained President tight Executive control over the activities of budgets and operations of the intelligence services. There is no publicly available evidence of independent oversight.

The Ministry of Defence has administrative control of the Directorate of Foreign Intelligence, Directorate of Internal Intelligence [1]. As it falls under the MoD, its finances will be audited by the Auditor General and its budget may be debated in parliament along with the budget of the entire Ministry. However, there is again no evidence of oversight of the intelligence strategy, policy nor activities.

According to the 18th Amendment to the Sri Lankan Constitution, the President had the power to appoint the Chairman and members of the Chief Justice and Judges of the Supreme Court, the President and Judges of the Court of Appeal, Members of the Judicial Service Commission, Attorney General, the Auditor General, Ombudsman and Secretary General of Parliament. The 19th Constitutional amendment passed by the new government to limit these powers.

Response to Peer Reviewer 1 and Peer Reviewer 2: Additional information is found relevant, the comments have been added to the assessment.

Assessor Sources 1- Organisation of the Ministry of Defence and Urban Development, http://www.defence.lk/main_abt.asp?fname=orgstr , accessed on 3 May 2014

2- 18th Amendment – Government of Sri Lanka. (9 September 2010). Available from: http://www.priu.gov.lk/Cons/1978Constitution/18th%20Amendment%20Act%28E%29.pdf.

Peer Reviewer4037 Opinion Agree with Comments
Peer Reviewer4037 Comments Again Amendment 18 to the Sri Lankan Constitution is relevant here as under the Amendment, the President has the power to appoint the Chairman and members of the National Police Commission, Human Rights Commission, Permanent Commission to Investigate Allegations of Bribery and Corruption, Chief Justice and Judges of the Supreme Court, the President and Judges of the Court of Appeal, Members of the Judicial Service Commission, Attorney General, Auditor General, Ombudsman and Secretary General of Parliament.

See for examples:

18th Amendment – Government of Sri Lanka. (9 September 2010). Available from: http://www.priu.gov.lk/Cons/1978Constitution/18th%20Amendment%20Act%28E%29.pdf.

Sultana, Gulbin. (7 October 2010). IDSA COMMENT – 18th Amendment: Making a Mockery of Democracy in Sri Lanka. Institute for Defence Studies and Analyses. Available from: http://idsa.in/idsacomments/18thAmendmentMakingaMockeryofDemocracyinSriLanka_gsultana_071010.html.

Peer Reviewer4480 Opinion Agree with Comments
Peer Reviewer4480 Comments There is no effective, properly resourced, and independent oversight. For example, there is no intelligence oversight legislative committee.

Interview with former senior military official 03.10.2014.

TI Reviewer4738 Opinion Agree
Political 20. Are senior positions within the intelligence services filled on the basis of objective selection criteria, and are appointees subject to investigation of their suitability and prior conduct?
Score 0.0
Assessor Comments There is no publicly available information regarding appointments in the intelligence services.
With the previous government, it was likely that the President controlled the appointment of senior officials especially considering that he controlled appointment processes across most of the government including the Auditor General [1]. As mentioned in previous questions, these Exective powers have now been limited with the passing of the 19th Constitutional Amendment. However, there are no updates reflecting changes in relation to this subject specifically.
Assessor Sources 1- Gulbin Sultana, &quoute;18th Amendment: Making a Mockery of Democracy in Sri Lanka&quoute;, Institute for Defence Studies and Analysis, 7 October 2010, http://www.idsa.in/idsacomments/18thAmendmentMakingaMockeryofDemocracyinSriLanka_gsultana_071010
2 – &quoute;19th Amendment to the Constitution of the Democratic Socialist Republic of Sri Lanka&quoute;, March 2015, https://www.colombotelegraph.com/wp-content/uploads/2015/03/Exclusive-19th-Amendment-draft-.pdf, [accessed 21 Sep. 2015]
Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree with Comments
Peer Reviewer4480 Comments Appointments are largely based on subjective, often political, criteria.

Interview with former senior military official 03.10..2014

TI Reviewer4738 Opinion Agree
Political 21. Does the government have a well-scrutinised process for arms export decisions that aligns with international protocols, particularly the Arms Trade Treaty (ATT)?
Score 0.0
Assessor Comments Sri Lanka is a signatory to the 1952 Geneva Protocol, and the Nuclear Proliferation Treaty (NPT) [1]. Various other export control instruments, including the Arms Trade Treaty (ATT), Anti- personnel Mine Ban Convention(APMBC), ATT, and Convention on Convention Weapons (CCW) Protocol V have not been signed. Sri Lanka abstained from the signing the ATT that came into force in 2013 [2]. News reports indicated that officials support the Treaty but some issues (unspecified) are yet to be sorted out before Sri Lanka can sign the treaty. [3]

Many CSOs and journalists have pushed for post-war disarmament but Sri Lanka has not signed any relevant international treaties/conventions yet[4]. There are concerns that the military used cluster munitions; the government has repeatedly denied this but has not yet acceded to the Convention against Cluster Munitions [5].

There does not appear to be any parliamentary approval process for arms sale decisions. While the new government has launched investigations into these cases, President Sirisena has not committed to acceding to international treaties.

There are examples of illicit transfers. Some recent cases highlight lax export controls in Sri Lanka. (a) Since February, former Defence Secretary Gotabaya Rajapaksa has been under investigation for alleged illicit sale of small arms and weapons to foreign countries, terrorist, and piracy groups [6].

(b) The private military company Avant-Garde Maritime (which has a tie-up with state-owned Rakna Arakshana Limited) has been alleged to have floating armouries carrying out secret weapon sales[7].
( c) Separately, there is an ongoing investigation of RALL as 3322 firearms stored at its BMICH arms depot of had gone unaccounted for [8]; so far it has revealed that licensing process is lax which increases the risk of illicit transfer[9].
(d) In March, the Ukrainian government reportedly complained to the Foreign Ministry in Colombo over alleged arms deals carried out by a Sri Lankan diplomat[10].

Assessor Sources 1- UNODA, (n.d.). Disarmament Treaties Database: Treaty on the Non-Proliferation of Nuclear Weapons (NPT). [online] Available at: http://disarmament.un.org/treaties/t/npt [Accessed 21 Sep. 2015].
2- &quoute;U.N. passes historic arms trade treaty&quoute;, The Hindu, 3 April 2013, http://www.thehindu.com/news/international/un-passes-historic-arms-trade-treaty/article4574044.ece
3- &quoute;Sri Lanka looking to regulate trade in small arms – Minister Nimal Siripala&quoute;, The Nation, 21 November 2013, http://www.nation.lk/edition/component/k2/item/22675-sri-lanka-looking-to-regulate-trade-in-small-arms-%E2%80%93-minister-nimal-siripala.html
4- Sri Lanka Daily Mirror, (2014). New president must put us on disarmament map. [online] Available at: http://www.dailymirror.lk/59801/new-president-must-put-us-on-disarmament-map [Accessed 21 Sep. 2015].
5- Sri Lanka Daily Mirror, (2015). SL yet to accede to ‘Cluster convention’. [online] Available at: http://www.dailymirror.lk/81787/sl-yet-to-accede-to-cluster-convention [Accessed 21 Sep. 2015].
6- Lanka E-News, (2015). Gotabaya’s arms sale proceeds to most feared international terrorists deposited in 58 accounts of Duminda Silva-CID reveals. [online] Available at: http://www.lankaenews.com/news/296/en [Accessed 21 Sep. 2015].
7- Daily News, (2015). Avant Garde, Rakna Lanka in secret weapons business | Daily News Online : Sri Lanka’s National News. [online] Available at: http://www.dailynews.lk/?q=police-legal/avant-garde-rakna-lanka-secret-weapons-business [Accessed 21 Sep. 2015].
8- Adaderana, (2015). 3322 firearms are missing at BMICH armory- Police. [online] Available at: http://www.adaderana.lk/news/29496/3322-firearms-are-missing-at-bmich-armory-police [Accessed 21 Sep. 2015].
9- Daily News, (2015). ‘Procedure followed to provide firearms to Rakna Arakshaka Lanka illegal’ | Daily News Online : Sri Lanka’s National News. [online] Available at: http://www.dailynews.lk/?q=police-legal/procedure-followed-provide-firearms-rakna-arakshaka-lanka-illegal [Accessed 21 Sep. 2015].
10- Gamini Gunaratna, S. (2015). Sri Lankan ex-diplomat probed in Ukraine over alleged involvement in arms deal. [online] Colombo Page. Available at: http://www.colombopage.com/archive_15A/Mar22_1427045155CH.php [Accessed 21 Sep. 2015].
Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree with Comments
TI Reviewer4738 Comments The government publishes very few arms control decisions and arms control processes are likely to align with no, or very few, international protocols. Very little scrutiny of arms control decisions take place.
Financial 22. How effective are controls over the disposal of assets, and is information on these disposals, and the proceeds of their sale, transparent?
Score 2.0
Assessor Comments There is a system in place for controls over the disposal of assets via the Ministry of Public Finance (MPF) which requires every Ministry to provide annual financial statements. In addition to this, finances of each Ministry are audited by the Office of the Auditor General [1] and a report is then submitted to the parliament. A committee in parliament then reviews all the information [2].

The MPF has published guidelines covering accounting procedures and disposal of assets [3]. The new guidelines on usage, control, custody, maintenance and disposal are to be included as a part of new Financial Regulations to be effective in 2014 [4].

The Ministry’s Annual Financial Statement is supposed to disclose details of disposal of assets by each Ministry. The most recent statement available on its website is from 2012. The &quoute;total disposals&quoute; column is left blank for the Ministry of Defence and Urban Planning – meaning either there was no information available or there were no disposals to account for in 2012 [5].

It is therefore not clear if controls are effective and whether the Defence Ministry or the Defence Secretary can bypass these legislative requirements. Detailed financial statements from the MoD are not available publicly. It may be the case that these are revealed to the MPF but not made Public. No public information is available on details of asset disposals.

In early 2015, following allegations by the Finance Minister, there was extensive media speculation regarding a Defence Ministry bank account intended to deposit money from the earlier sale of the old army headquarters land. Journalists have stated the account was irregular and violated financial regulations, and had been queried by the Auditor General in 2013.

Assessor Sources 1- Office of the Auditor General website, Scope of the Auditor General, http://www.auditorgeneral.gov.lk/web/index.php?option=com_content&view=article&id=106&Itemid=87&lang=e , accessed on 2 May 2014

2- Parliament of Sri Lanka website, Introduction to the Parliamentary Public Accounts Committee, http://www.parliament.lk/en/component/committees/commitee/showCommittee?id=8 , accessed on 2 May 2014

3- &quoute;Sri Lanka Public Sector Accounting Standards&quoute;, Ministry of Public Finance, 2012, https://casrilanka.com/casl/images/stories/content/publications/publications/accounting_standards/public_sector_accounting_standards/slpsas_vol.2.pdf

4- &quoute;Effective date&quoute; in &quoute;Sri Lanka Public Sector Accounting Standards&quoute;, 2012, Ministry of Public Finance, p.76 https://casrilanka.com/casl/images/stories/content/publications/publications/accounting_standards/public_sector_accounting_standards/slpsas_vol.2.pdf

5- Financial Statement – 2012, Ministry of Public Finance, p.589, 595, 602. At http://www.treasury.gov.lk/reports/annualreport/2012/14-FinancialStatements.pdf

6- Sunday Times, &quoute;Irregular Defence Ministry account queried by the AG in 2013&quoute;, January 25, 2015. http://www.sundaytimes.lk/150125/business-times/irregular-defence-ministry-account-queried-by-the-ag-in-2013-131546.html

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree with Comments
TI Reviewer4738 Comments There is little public knowledge about the procedures of asset disposal, nor of the controls that might be in place. The subject is unlikely to be referred to in defence and security documents.
Financial 23. Is independent and transparent scrutiny of asset disposals conducted by defence establishments, and are the reports of such scrutiny publicly available?
Score 1.0
Assessor Comments There is no evidence that asset disposals are scrutinised by an oversight body of any form. Reports from the Ministry of Public Finance about disposals in every department are, in theory, to be scrutinised by the Office of the Auditor General [1], which was earlier meant to be an autonomous body responsible to the parliament. In September 2010, the Rajapaksa government reduced the independence and autonomy of the Auditor General when the 18th Amendment to the Sri Lankan constitution was passed allowing the President to appoint the Auditor General however [2]. There has been a more recent reversal of these powers under the 19th amendment, which ensures that presidential nominations are approved by a Constitutional Council formed from the legislature.

The most recently published AG report of 2013 does not include any details on asset disposals [5]. Media coverage in 2015 regarding a Defence Ministry bank account intended to deposit money from the earlier sale of the old army headquarters land indicates this had been queried by the Auditor General in 2013 however, suggesting that the system may have been active but lacking independence. Officials in the Ministry of Finance and the Auditor General’s office have also stated that the Ministry’s account was irregular and violated financial regulations. It was not clear at the time of writing what the final outcome of this case was, if any.

The new government is currently setting up a &quoute;National Audit Commission&quoute;[6], which is independent of the executive and will report directly to the parliament. The cabinet approved the &quoute;National Audit bill&quoute; in April [7] and at the time of writing this assessment, the commission was still being established. No further details about the &quoute;National Audit Bill&quoute; are publicly available and it remains to be seen as to how much information it will receive about the defence sector.

Currently, there is also the Public Accounts Committee (PAC) responsible for monitoring the performance of government ministries and departments. According to the parliament: &quoute;the task of the Committee is to probe the managerial efficiency and financial discipline of the Government, its Ministries, Departments, Provincial Councils and Local Authorities&quoute; [4]. The PAC examines account statements alongside the Auditor General’s report. However, the workings of the PAC are not transparent and its reports are not made available publicly on the website of the Sri Lankan parliament.

Assessor Sources 1- Office of the Auditor General website, Scope of the Auditor General, http://www.auditorgeneral.gov.lk/web/index.php?option=com_content&view=article&id=106&Itemid=87&lang=e , accessed on 2 May 2014

2- Gulbin Sultana, &quoute;18th Amendment: Making a Mockery of Democracy in Sri Lanka&quoute;, Institute for Defence Studies and Analysis, 7 October 2010 . http://www.idsa.in/idsacomments/18thAmendmentMakingaMockeryofDemocracyinSriLanka_gsultana_071010 , accessed on 2 May 2014.

3- Audit Reports can be downloaded from http://www.auditorgeneral.gov.lk/web/index.php?option=com_audititem&Itemid=89&lang=en

, accessed on 2 May 2014

4- Parliament of Sri Lanka website, Introduction to the Parliamentary Public Accounts Committee, http://www.parliament.lk/en/component/committees/commitee/showCommittee?id=8

, accessed on 2 May 2014.

5- &quoute;Annual report – 2013&quoute;, Auditor General of Sri Lanka, http://www.auditorgeneral.gov.lk/web/upload/Annual%20report%202013-Part%20V-E.pdf

6- Daily News, (2015). National Audit Bill already drafted – Eran. [online] Available at: http://www.dailynews.lk/?q=local/national-audit-bill-already-drafted-eran [Accessed 21 Sep. 2015].

7- Adaderana, (2015). Cabinet approves draft bills on Right to Information and National Audit. [online] Available at: http://www.adaderana.lk/news/30599/cabinet-approves-draft-bills-on-right-to-information-and-national-audit [Accessed 20 Sep. 2015].

8- Sunday Times, &quoute;Irregular Defence Ministry account queried by the AG in 2013&quoute;, January 25, 2015. http://www.sundaytimes.lk/150125/business-times/irregular-defence-ministry-account-queried-by-the-ag-in-2013-131546.html

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Financial 24. What percentage of defence and security expenditure in the budget year is dedicated to spending on secret items relating to national security and the intelligence services?
Score 0.0
Assessor Comments The Open Budget Survey of 2012 recommended that Sri Lanka should include extra-budgetary funds, quasi-fiscal activities, expenditure arrears, financial and non-financial assets held by the government, and percentage of the budget devoted to secret items. However, a scrutiny of recent budget proposals, financial statements as well as relevant news articles revealed no information available about secret budgets.
Assessor Sources 1- Financial Statement – 2012, Ministry of Public Finance, p.589, 595, 602. At http://www.treasury.gov.lk/reports/annualreport/2012/14-FinancialStatements.pdf

2- Budget Estimates for 2013, Ministry of Public Finance, http://www.treasury.gov.lk/depts/nbd/budgetestimates/2013/nationalexpenditure/governmentexpenditurebyministry.pdf

3- &quoute;Performance Report – 2012&quoute;, Department of National Budget, Ministry of Public Finance, http://www.treasury.gov.lk/images/depts/nbd/docs/reports/performance/PERFORMANCEREPORT-2012-eng.pdf

4- Country Report – Sri Lanka, Open Budget Survey 2012, p.2, http://internationalbudget.org/wp-content/uploads/OBI2012-SriLankaCS-English.pdf

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Financial 25. Is the legislature (or the appropriate legislative committee or members of the legislature) given full information for the budget year on the spending of all secret items relating to national security and military intelligence?
Score 0.0
Assessor Comments The defence budget, which contains some details of defence allocations, is scrutinsed and approved by the legislature [3]. The legislature is given information on expenditure but this constitutes only major expenses.
Financial Statements are also scrutinised by the Auditor General and the Auditor General’s office also publishes its reports. However, none of these reveal any information about secret budgets.
Assessor Sources 1- Financial Statement – 2012, Ministry of Public Finance, p.589, 595, 602. At http://www.treasury.gov.lk/reports/annualreport/2012/14-FinancialStatements.pdf

2- Budget Estimates for 2013, Ministry of Public Finance, http://www.treasury.gov.lk/depts/nbd/budgetestimates/2013/nationalexpenditure/governmentexpenditurebyministry.pdf

3- Ministry of Defence and Urban Development, Budget Estimates Vol. I and Vol. II, 2013, http://www.treasury.gov.lk/depts/nbd/budgetestimates/2013/headlist/103/103.pdf

3- &quoute;Performance Report – 2012&quoute;, Department of National Budget, Ministry of Public Finance, http://www.treasury.gov.lk/images/depts/nbd/docs/reports/performance/PERFORMANCEREPORT-2012-eng.pdf

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Financial 26. Are audit reports of the annual accounts of the security sector (the military, police, and intelligence services) and other secret programs provided to the legislature (or relevant committee) and are they subsequently subject to parliamentary debate?
Score 0.0
Assessor Comments Details regarding the security sector finances and budgets are tabled in the Financial report by the Ministry or Public Finance (MPF) [1] as well as the Auditor General [2]. However, only major details are included (total revenue, total expenses) and there are no details of secret budgets [1], [2]. The Open Budget Survey 2012 also recommended that Sri Lanka look into including details of secret budgets in future [3].

In principle, all these reports are subject to parliamentary debate but the problem is the lack of reporting on secret budgets to the parliament. The Auditor General report as well as the MPF statements are examined by the Public Accounts Committees (PAC) in parliament. However it is not clear if the PAC requires secret budgets to be disclosed internally at least. There is a lack of transparency about PAC scrutiny.

Assessor Sources 1- &quoute;Financial Statement – 2012&quoute;, Ministry of Public Finance, pp.589-624. http://www.treasury.gov.lk/reports/annualreport/2012/14-FinancialStatements.pdf

2- &quoute;Ministry of Defence and Urban Development&quoute;, Auditor General’s Report – 2011, pp.18-21 http://www.auditorgeneral.gov.lk/web/upload/Annual%20Report%20-%202011%20-%20Final%20-%20Part%202%20%20English-3.pdf

3- &quoute;Country Report – Sri Lanka&quoute;, Open Budget Survey 2012, p.2 , http://internationalbudget.org/wp-content/uploads/OBI2012-SriLankaCS-English.pdf

4- Ministry of Finance and Planning, Depart of State Accounts, http://www.treasury.gov.lk/general-treasury2/state-accounts.html

5- Auditor General’s Department website, Auditor Reports, http://www.auditorgeneral.gov.lk/web/index.php?option=com_audititem&Itemid=89&lang=en

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Financial 27. Off-budget military expenditures are those that are not formally authorised within a country’s official defence budget, often considered to operate through the ‘back-door’. In law, are off-budget military expenditures permitted, and if so, are they exceptional occurrences that are well-controlled?
Score 1.0
Assessor Comments Based on a few publicly available news reports it appears that off-budget expenses are common in Sri Lanka. A news report from 2012 reported that &quoute;about 30 billion rupees in guarantees (about 0.4 percent of GDP) had been given to the RDA [Regional Development Authority] and the Ministry of Defence and Urban Development&quoute; [1].

Although information on off-budget expenses is sparse, it is likely that it is a common occurrence in Sri Lanka given that it happens across other departments and Ministries too [1], [2].

In terms of reporting, the Ministry of Public Finance’s Budget Department publishes annual performance reports of all Ministries. The last available report is for the year 2012. Under &quoute;progress of utilisation of provinces&quoute;, the balance sheet includes data under a heading titled &quoute;additional allocation provided from the Treasury Miscellaneous Vote&quoute;. This column appears to include finances allocated to the department in addition to the allocated budget [3]. It is not clear as to what &quoute;miscellaneous&quoute; involves and if this is what refers to &quoute;off-budget&quoute; expenses.

No further information was available about how these expenses are controlled.

Assessor Sources 1- &quoute;Govt ups deficit spending through off-budget guarantees &quoute;, The Island, 22 November 2012. http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=66660, accessed on 2 May 2014.

2- &quoute;Sri Lanka ‘off-budget’ energy subsidies end up in national debt&quoute;, Lanka Business Online, 20 March 2011. http://www.lankabusinessonline.com/news/sri-lanka-off-budget-energy-subsidies-end-up-in-national-debt/1142641957 , accessed on 2 May 2014

3- &quoute;Progress of Utilization of Provisions – 2012&quoute;, Performance Report – 2012, Department of National Budget, section 2.1, p.5. http://www.treasury.gov.lk/images/depts/nbd/docs/reports/performance/PERFORMANCEREPORT-2012-eng.pdf

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree with Comments
TI Reviewer4738 Comments Off-budget military expenditures are permitted by law, and though they are recorded, this recording is incomplete or is otherwise unreliable.
Financial 28. In practice, are there any off-budget military expenditures? If so, does evidence suggest this involves illicit economic activity?
Score 1.0
Assessor Comments There is not much information available about this to make an accurate assumption. However a news story from 2012 reported the existence of off-budget expenditures [1]. The reports included details about the Ministry of Defence and Urban Development.

There are other reports about off-budget expenditures in the Energy sector [2], giving the impression that such expenses may be rampant in practice across departments. Not much is known about them due to lack of reporting/transparency.

There is insufficient information to make a conclusion about how much involve illicit economic activity. A score of 1 has been given based on examples such as the floating armouries around the Indian Ocean as Rakna Arakshaka Lanka, a wholly owned subsidiary. It is not entirely clear as to how these expenditures and incomes are recorded. Although it is listed as a Statutory of the Ministry of Defence as per the Annual Budget 2013 [3], there are reports such as [4] time and again about how Rakna Lanka can invest funds without obtaining the Treasury approval.

Sri Lanka has procured weapons from Russian and China through credits given through the later governments. In February 2010, Sri Lanka signed a deal with Moscow that provided Colombo with credit valued at US$300 million to purchase Russian-made military equipment and technologies [5]. Such factors could facilitate off-budget military expenses, the lack of transparency makes it difficult to assess this for certain.

Response to Peer Reviewer 1: The connection to off-budget expenditure is not very clear and remains speculative. Perhaps we would need more than a few reports to make any definitive assessment. However since there is no information about secret budgets and incidents like the ones referenced add to these concerns about corruption. Score changed to 1.

Assessor Sources 1- &quoute;Govt ups deficit spending through off-budget guarantees &quoute;, The Island, 22 November 2012. http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=66660, accessed on 2 May 2014.

2- &quoute;Sri Lanka ‘off-budget’ energy subsidies end up in national debt&quoute;, Lanka Business Online, 20 March 2011. http://www.lankabusinessonline.com/news/sri-lanka-off-budget-energy-subsidies-end-up-in-national-debt/1142641957 , accessed on 2 May 2014

3- Budget 2013, http://www.treasury.gov.lk/depts/nbd/budgetestimates/2013/headlist/103/103.pdf

4- Gota’s Ex-Security Personnel’s Company Can Invest Funds Without Treasury Approval – COPE, Colombo Telegraph, 27 Nov 2013, https://www.colombotelegraph.com/index.php/gotas-ex-security-personnels-company-can-invest-funds-without-treasury-approval-cope/

5- &quoute;Big military deal with Russia&quoute;, Sunday Times, 24 Janury 2010, http://www.sundaytimes.lk/100124/News/nws_05.html

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Disagree
Peer Reviewer4480 Suggested Score 1
Peer Reviewer4480 Comments The expenditure associated with operating three floating armouries around the Indian Ocean as Rakna Arakshaka Lanka, a wholly owned subsidiary, cannot be insignificant, even if it is unclear. See

http://avantmaritime.com/about_us

http://rallsecurity.com/

http://www.thesundayleader.lk/2013/01/27/galle-to-become-hub-in-fighting-somali-pirates/

http://onlineuthayan.com/english-news/uthayannews/033433l1h1h1r2

TI Reviewer4738 Opinion Agree with Comments
TI Reviewer4738 Comments There is evidence of some off-budget military expenditures, but the extent to which this is a practice is unclear.
Financial 29. In law, are there provisions regulating mechanisms for classifying information on the grounds of protecting national security, and, if so, are they subject to effective scrutiny?
Score 0.0
Assessor Comments A detailed survey of official documents on Accounting Standards, Financial Statements, Auditor General reports, Performance reports by the Department of National Budget, establishes that there is no public information of provisions regulating mechanisms of classifying information. Open source search for news articles, blogs, etc. also revealed no information on this subject.

The previous Rajapaksa government was criticised for the strong degree of control they exercise over many sectors, it is likely that classification of information was done on the basis of preserving their best interest and the military. In October 2013, an opposition leader criticised the government for its refusal to answer questions about the Defence Ministry’s weapon and ammunition procurement in the 2010-2012 period. The opposition MP urged that &quoute;National Security could not be used as an excuse to violate Parliamentary Standing Orders&quoute; [3].

The new government has proposed a draft for the Right to Information Act but it includes secrecy clauses permitting information to be withheld on grounds of &quoute;national security, territorial integrity, and sovereignty of the country&quoute;[4].

Assessor Sources 1- &quoute;Sri Lanka Public Sector Accounting Standards&quoute;, Ministry of Public Finance, 2012, https://casrilanka.com/casl/images/stories/content/publications/publications/accounting_standards/public_sector_accounting_standards/slpsas_vol.2.pdf

2- Financial Statement – 2012, Ministry of Public Finance, p.589, 595, 602. At http://www.treasury.gov.lk/reports/annualreport/2012/14-FinancialStatements.pdf

3- Hemmathagama.lk, (2013). Ranil takes on Sri Lanka Defence Ministry spending | Article14 | news & views from Sri Lanka. [online] Available at: http://www.hemmathagama.lk/ranil-takes-on-defence-ministry-spending/ [Accessed 20 Sep. 2015].

4- &quoute;RTI: People’s right&quoute;, Sri Lanka Daily Mirror, March 2013, http://www.pressreader.com/sri-lanka/daily-mirror-sri-lanka/20150321/281565174249081/TextView

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Financial 30. Do national defence and security institutions have beneficial ownership of commercial businesses? If so, how transparent are details of the operations and finances of such businesses?
Score 1.0
Assessor Comments Based on public information, the military and the defence establishment own many beneficial commercial businesses. Following the end of the war, the military has moved into operating commercial enterprises including, agriculture and tourism. A recent example is the Navy operating fishing and whale-watching tours, and owning new holiday resorts (under the name Malima Hospitality Services, accessible from the Navy website) [1]. Similarly the Air Force operates helicopter tours which is essentially a civilian business [2]. The Army runs an air-ticketing agency [3] and news reports indicate that land seized from the locals during the war are being redeveloped as luxury tourist resorts and industrial projects [7].

An Economist report from 2011 is still valid today, and explains the problem at hand [4]. Visits to Sri Lanka and informal conversations with Sri Lankan students and former military officers indicate that the military controls several businesses in society whilst also waging its influence over private-companies in charge of garbage-collection, education, public transport etc.

In July 2013, the Army was reportedly awaiting Cabinet approval to start profit-making ventures [5]. However, there are no further reports about this development and it has not been possible to confirm in the approval was granted.

NGO’s and the media have warned of corruption implications but the military has not responded to them. In fact, the Ministry of Defence is under the belief that the military must be well used in projects of development, beautification and nation-building. Despite some official claims that the Sri Lankan military has reduced some of its operations following the end of the war against the LTTE, publicly available evidence suggests otherwise. The military has expanded its operations into the civilian sectors and the government has raised the defence budget. Several military officials have been given senior jobs in civilian sectors, after the end of the war. This includes in the field of education, government departments, banks ete.

It is unclear how the transparency and extent of these businesses will be addressed under by the new government.

Assessor Sources 1- &quoute;Malima Hospitality Services&quoute; [a chain of resorts, restaurants run by the Navy], Sri Lankan Navy, http://malima.com.lk/ , accessed on 3 May 2014

2- Helitours by the Air Force, Sri Lankan Air Force, http://airforce.lk/pages.php?pages=helitours, accessed 3 May 2014

3- &quoute;Sri Lanka Army Launches Air Travel Services&quoute;, Business Today, April 2011, http://www.businesstoday.lk/article.php?article=3337

4- &quoute;Sri Lanka Army: in bigger barracks&quoute;, The Economist, 2 June 2011, http://www.economist.com/node/18775481

5- &quoute;Army awaits cabinet nod for profit making ventures&quoute;, Daily Mirror, 18 July 2013, http://www.dailymirror.lk/news/32574-army-awaits-cabinet-nod-for-profit-making-ventures.html

6- &quoute;Watchdog slams Sri Lanka navy chief heading ship firm&quoute;, The Straits Times, 30 October 2013, http://www.straitstimes.com/breaking-news/asia/story/watchdog-slams-sri-lanka-navy-chief-heading-ship-firm-20131030

7- Aulakh, R. (2015). Land seized from Tamils turned into luxury tourist resorts in Sri Lanka, report finds | Toronto Star. [online] The Star. Available at: http://www.thestar.com/news/world/2015/05/28/land-seized-from-tamils-turned-into-luxury-tourist-resorts-in-sri-lanka-report-finds.html [Accessed 20 Sep. 2015].

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree with Comments
Peer Reviewer4480 Comments Also, refer the activities of Rakna Arakshaka Lanka, especially its maritime operations.

http://www.thesundayleader.lk/2012/10/14/arabian-sea-maritime-security-temporarily-at-risk/

http://www.srilankaguardian.org/2012/11/deployment-of-floating-armouries-rakna.html

http://onlineuthayan.com/english-news/uthayannews/033433l1h1h1r2

TI Reviewer4738 Opinion Agree with Comments
TI Reviewer4738 Comments Defence and security institutions do have ownership of some commercial businesses, but these are not major enterprises. These businesses are publicly declared, though details of their operations and finances are not transparent.

The intrusion of the military in civic life has been documented in the press but no action has been taken to ameliorate this situation under the new regime.

Financial 31. Are military-owned businesses subject to transparent independent scrutiny at a recognised international standard?
Score 1.0
Assessor Comments The prevailing accounting procedures for military-owned businesses dictate that they are to be reported as part of the financial statement of the Ministry of Defence and Urban Development. The Auditor General can review reports but aside from this, there is no separate independent scrutiny closer to a recognised international standard.

The Auditor General’s report in 2011 included details of development activities of the military. It stated, &quoute;according to the recent data and information, a trend in the three forces to engage in activities relating to the economic development and social work after the end of the 30 year war that prevailed in the north was observed.&quoute; Subsequently, these details were included in the total figures in the report. There was no detailed break-up. It is not clear as to how much of these activities and such income from commercial sources get recorded and revealed to the Auditor General.

Similarly, the 2013 report is superficial detailing aggregates for the sector. It found some discrepancies with disclosure of revenues from activities including land leased for hotel operation, sale of farm produce, barber and tailoring services, and sale of produce from camp premises [Source 4, pp.88-89]. It is not clear as to what action was taken about the discrepancies.

Assessor Sources 1- Scope of the Auditor General, website of the Office of the Auditor General, http://www.auditorgeneral.gov.lk/web/index.php?option=com_content&view=article&id=106&Itemid=87&lang=en

2- Audit Report 2011, Office of the Auditor General, Part-III Sector Reports, pp,18-19, Table 8, http://www.auditorgeneral.gov.lk/web/upload/Annual%20Report%20-%202011%20-%20Final%20-%20Part%202%20%20English-3.pdf

3- Audit Report 2013, Office of the Auditor General, Sector Reports, pp,86-89, Table 8http://www.auditorgeneral.gov.lk/web/upload/Annual%20report%202013-Part%20V-E.pdf

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Financial 32. Is there evidence of unauthorised private enterprise by military or other defence ministry employees? If so, what is the government’s reaction to such enterprise?
Score 2.0
Assessor Comments There are reports of military personnel engaging in unauthorised activities for monetary gain at a rather small level. For example, it has been reported that army personnel have taken on local vegetable vendors by secretly selling vegetables from military farms at a cheaper rate. Similarly, it has been reported that soldiers are deployed to sell cheap vegetables and fish from time to time in a bid to bring down prices of the commodities [1].

Apart from that, the military and the defence establishment own many beneficial commercial businesses and this number has only been increasing. Following the end of the war against the LTTE, the three services of the military have moved into operating commercial enterprises in various sectors including, agriculture and tourism.

In July 2013, the Army was reportedly awaiting Cabinet approval to start profit-making ventures [1]. However, there are no further reports about this and it has not been possible to confirm in the approval was granted. The interviewee was convinced that the approval was just a formality which, in practice, the Army did not need to start a business venture as they are already able to engage in commercial activities.

There is no evidence to suggest that the previous Sri Lankan government was inclined towards penalising any unauthorised enterprise and it is unclear what steps are being taken by the new government to address this issue as well.

Response to Peer Reviewer 2: Reviewer comments taken into consideration and added into the assessment. However, news reports and ground realities indicate that military personnel are engaging in profitable activity. In fact, the 2010 report from the Lessons Learnt and Reconciliation Committee (LLRC) also raised concerns that the military may be running small business in the Northern provinces and on Army premises [8]. Reports from the news and open sources cannot be ruled out in favour of 1 interview. Hence, the final score of 2 is maintained indicating that there is a law in place but there are repeated and strong allegations about such activities taking place.

Assessor Sources 1- &quoute;Concerns Raised over Sri Lanka Navy Chief Heading Shipping Firm&quoute;, Lanka Business Online, 30 October 2013, http://www.lankabusinessonline.com/news/concerns-raised-over-sri-lanka-navy-chief-heading-shipping-firm/1967341939

2- &quoute;Army awaits cabinet nod for profit making ventures&quoute;, Daily Mirror, 18 July 2013, http://www.dailymirror.lk/news/32574-army-awaits-cabinet-nod-for-profit-making-ventures.html , accessed on 2 May 2014

3- &quoute;Pros and cons of government ownership in Sri Lanka&quoute;, Lanka Business Online, 29 May 2013, http://www.lankabusinessonline.com/news/pros-and-cons-of-government-ownership-in-sri-lanka/85269404

4- &quoute;The military-industrial complex&quoute;, Financial Times Sri Lanka, 3 January 2012, http://www.ft.lk/2012/01/03/the-military-industrial-complex/

5- &quoute;The health of the private sector in Sri Lanka&quoute;, Lanka Business Online, 11 November 2013, http://www.lankabusinessonline.com/news/the-health-of-the-private-sector-in-sri-lanka/1939095853 (accessed on 15 August 2014 )

6- Interview with former military officer, 06 May 2014.

7- &quoute;SL Army lease out land for cultivation of commercial crops&quoute;, The Government News Portal, 25 March 2013, http://www.news.lk/news/sri-lanka/item/102-sl-army-lease-out-land-for-cultivation-of-commercial-crops

8- Disciplinary Division, PSC, http://www.psc.gov.lk/web/index.php?option=com_content&view=article&id=85&Itemid=143&lang=en

9- Presidential Secretariat, Sri Lanka, Report of the Lessons Learnt and Reconciliation Commission (LLRC), 2011, available at http://www.presidentsoffice.gov.lk/index.php?option=com_content&view=article&id=54:llrc-report&catid=53:nomenuarticles&Itemid=290

Peer Reviewer4037 Opinion Agree with Comments
Peer Reviewer4037 Comments There have been claims that have not been possible to substantiate further that land has been confiscated to build approximately 10,000 houses in Kilinochchi and there have been further accusations of the military taking land off the A9 Highway between Mankulam and Mullaitivu to build homes for the families of army members that have been relocated to the North rather than for those displaced by the conflict

Source: Interview, Sister Catholic Church and Philanthropist, Mankulam, July 17, 2012 ; Interview Members of the Tamil National People’s Front, Jaffna, July 16, 2012 .

Peer Reviewer4480 Opinion Disagree
Peer Reviewer4480 Suggested Score 3
Peer Reviewer4480 Comments All civil servants and members of the armed forces are prohibited from engaging in private enterprise. See the Establishments Code and Service Regulations for details. According to an interview with a former senior military official, these regulations are, for the most part, enforced.
TI Reviewer4738 Opinion Agree
Personnel 34. Do the Defence Ministry, Defence Minister, Chiefs of Defence, and Single Service Chiefs publicly commit – through, for example, speeches, media interviews, or political mandates – to anti-corruption and integrity measures?
Score 2.0
Assessor Comments Under the new government of President Sirisena, there has been a new-found commitment to eradicating corruption. In addition to the President committing to it, as well as making it his election pledge, news reports indicate that he has mandated cabinet ministers to tackle corruption in their respective ministries [5]. Under the new government, the Commission to Investigate Bribery and Corruption Allegations (CIABOC) is investigating several corruption cases including cases involving army personnel [e.g source 6] and former defence secretary[7]

The previous government under the Rajapaksas made constitutional and structural amendments in a way that are immune from questioning and independent audit [1]. Former Defence Secretary Gotabaya Rajapaksa made general statements to reduce corruption in public and private sectors [1] but not specific to the defence sector. However, he expressed the view that corruption in the military is very low and is not a problem anymore [2].

Commanders of individual services have not been seen making statements committing to anti-corruption.

Response to Peer Reviewer 2: Agree with comments. Score changed to 2.

Assessor Sources 1- Gulbin Sultana, &quoute;18th Amendment: Making a Mockery of Democracy in Sri Lanka&quoute;, Institute for Defence Studies and Analysis, 7 October 2010, http://www.idsa.in/idsacomments/18thAmendmentMakingaMockeryofDemocracyinSriLanka_gsultana_071010

2- &quoute;Corruption cause for poor public, private sector work: Gota&quoute;, Financial Times, 21 October 2011, http://www.ft.lk/2011/10/21/corruption-cause-for-poor-public-private-sector-work-gota/

3- &quoute;Gotabaya Rajapaksa -Three Years Later&quoute;, The Sunday Leader, 27 May 2012, http://www.thesundayleader.lk/2012/05/27/gotabaya-rajapaksa-three-years-later/

4- Interview with former military officer, 06 May 2014.

5- LTD, L. (2015). The Island. [online] Island.lk. Available at: http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=117969 [Accessed 20 Sep. 2015].

6- R11 / 2015 in &quoute;Detection and Raids&quoute;, CIABOC, 27 April 2015, &quoute;http://www.ciaboc.gov.lk/web/index.php?option=com_content&view=category&layout=blog&id=34&Itemid=2&lang=en&limitstart=5

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Disagree
Peer Reviewer4480 Suggested Score 2
Peer Reviewer4480 Comments Based on the analysis provided by the assessor, it appears that there is some level of public commitment to anti-corruption in principal. In addition see the press releases by the Army on corruptions such as:

http://www.army.lk/detailed.php?NewsId=8200

However, the assessor it right that there has been no commitment to specific concrete measures.

TI Reviewer4738 Opinion Agree
Personnel 35. Are there effective measures in place for personnel found to have taken part in forms of bribery and corruption, and is there public evidence that these measures are being carried out?
Score 2.0
Assessor Comments The Commission to Investigate Allegations of Bribery & Corruption (commonly called ‘Bribery Commission’ or CIABOC) is in charge of conducting investigations, raids, and taking relevant legal action against personnel guilty of fraud. Other bodies include Criminal Investigations Department (CID), and the Frauds and Corruption Investigations Division (FCID). There is some public evidence of investigations being carried out into corrupt activities of officers, mostly under the new government. However, not much is known about the outcome of these cases.

Until 2015, there was doubt over the independence and efficiency of the CIABOC as the former President Rajapaksa’s 18th amendment to the constitution in 2010 gave him the right to make appointments and dismissals of the Head of CIABOC [2], many alleged that CIABOC’s role is superficial [1]. Likewise, other avenues for investigation of allegation of bribery and corruption such as the Human Rights Commission and the Chief Justice and Judges of the Supreme Court, were also appointed by the President under the 18th Amendment. Examples- A news report from 2013 alleged that two investigations pending against former Inspector General of Police (IGP) Jayantha Wickramaratne at the CIABOC were being deliberately suppressed by political influence [3]; An earlier news report from 2012 quotes the Defence Secretary as saying &quoute;corruption in the military is now very much less. Procurement is not taking place… There is no point going into these old cases.&quoute; This statement demonstrates the Rajapaksa government’s attitude of denial and negligence towards allegations of high-profile and wide-spread corruption [4].

The CIABOC is being revamped under the new government [11] in accordance with the 19th constitutional amendment. The new independent body was to be formed in late September 2015. Since the change in government, the CIABOC has been investigating many corruption scandals of the previous government including one involving former defence secretary Gotabaya Rajapaksa [12].

In terms of sanctions and actions taken, as per law, an officer should be court-martialled if he is caught accepting bribes for recruitment[5]. The Army Act [6]prohibits fraudulent enlistment and officers found guilty are required to be court-martialled. The Army Act is also interchangeably referred to as the Military Act (see for example source 7) suggesting that the regulations are applicable to the Air Force and the Navy as well. No information on internal military court martials relating to bribery and corruption are publicly available.

From media reports, it appears that suspension is the common disciplinary sanction against officers engaging in bribery and corruption- see source 9; also in February 2015, the CIABOC arrested a Signals Corps soldier for receiving a bribe and waned to expedite his release from the Army [10]. In both cases, the outcome of whether the soldiers were discharged is not known as at September 2015.

Assessor Sources 1- Nirmala Kanangara, &quoute;Bribery Commission In Question!&quoute;, The Sunday Leader, 16 February 2014, http://www.thesundayleader.lk/2014/02/16/bribery-commission-in-question/

2- Gulbin Sultana, &quoute;18th Amendment: Making a Mockery of Democracy in Sri Lanka&quoute;, Institute for Defence Studies and Analysis, 7 October 2010, http://www.idsa.in/idsacomments/18thAmendmentMakingaMockeryofDemocracyinSriLanka_gsultana_071010

3- &quoute;Exclusive Expose: Serious Corruption Allegations Against Bribery Commissioner Jayantha Wickramaratne Hidden At Bribery Commission By Influence&quoute;, Colombo Telegraph, 30 May 2013, https://www.colombotelegraph.com/index.php/exclusive-expose-serious-corruption-allegations-against-bribery-commissioner-jayantha-wickramaratne-hidden-at-bribery-commission-by-influence/

4- &quoute;Gotabaya Rajapaksa -Three Years Later&quoute;, The Sunday Leader, 27 May 2012, http://www.thesundayleader.lk/2012/05/27/gotabaya-rajapaksa-three-years-later/

5- Interview of a Sri Lanka Army officer who is now working at a University, 6 May 2014

6- The Army Act, Sri Lanka, http://www.defence.lk/main_pub.asp?fname=armyact
7- The Asian Tribune, &quoute;On My Beat: Instead of Court martial, Charge under Bribery Law, An Open And Shut Case&quoute;, 8 February 2010, http://www.asiantribune.com/news/2010/02/08/my-beat-instead-court-martial-charge-under-bribery-law-open-and-shut-case
8- Petition 1043/2008 to the Court of Appeal of Sri Lanka, Argued 2011, Decided 2012, http://tinyurl.com/k4tura2
9- &quoute;Militray Police Surveillance Teams to Minimize Malpractices and Corruption&quoute;, Sri Lanka Army Press Release, 19 June 2014, http://www.army.lk/detailed.php?NewsId=8200
10- R 11/ 2015 in &quoute;Detection and Raids&quoute;, CIABOC, 27 February 2015, http://www.ciaboc.gov.lk/web/index.php?option=com_content&view=category&layout=blog&id=34&Itemid=2&lang=en&limitstart=5
11- &quoute;CIABOC to be revamped&quoute;, Sunday Leader, 6 September 2015, http://www.thesundayleader.lk/2015/09/06/ciaboc-to-be-revamped/
12- PK Balachandran, &quoute;Former Defence Secretary Gotabaya Gets Interim Injunction Against Arrest&quoute;, New Indian Express, 13 May 2015, http://www.newindianexpress.com/world/Former-Defence-Secretary-Gotabaya-Gets-Interim-Injunction-Against-Arrest/2015/05/13/article2812498.ece

Peer Reviewer4037 Opinion Agree with Comments
Peer Reviewer4037 Comments A Permanent Commission to Investigate Allegations of Bribery and Corruption exists but questions as to its effectiveness and neutrality remain as the power to appoint persons to the Commission is vested with the President under Amendment 18 to the Constitution. Likewise, other avenues for investigation of allegation of bribery and corruption such as the Human Rights Commission and the Chief Justice and Judges of the Supreme Court, are also appointed by the President under the 18th Amendment.

In May 2010 the government establishment a Lessons Learnt and Reconciliation Commission (LLRC) charged with investigating whether war crimes were committed during the final phase of the war , and specifically inquiring into events that took place between February 2002 and May 2009 including the facts and circumstances which led to the failure of the Ceasefire Agreement, whether any person, group, or institution is directly or indirectly responsible, the institutional administrative and legislative measures necessary to prevent any recurrence of such events in the future, and to ‘promote further national unity and reconciliation among all communities’. Hearings of the Commission were generally public, open to media, and held in Colombo as well as war-affected areas including Batticaloa, Jaffna, Kilinochchi, Mannar, and Vavuniya with field visits conducted to detention centres where surrendered LTTE combatants were being held. The LLRC submitted its Report to the President on 15 November 2011 and was made public on 16 December 2011 containing 285 recommendations for advancing national reconciliation. However, the LLRC has been criticised for its limited mandate, flawed structure, lack of independence, and failure to meet minimum basic international standards to offer protection to witnesses who testified as well as simply reinforcing the government’s ‘official’ narrative of the CA and end of the war.

Other governmental actions relating to the purported regulation and investigation of corruption have been subject to accusations that these actions themselves are corrupt, aimed at targeting specific members of Sri Lanka’s population, such as the media and civil society, which critically analyse government and security personnel’s actions and seek to hold the government to account, and intended to enable security and defence personnel to avoid persecution for corruption and/or bribery. For example, a press release issued by the Director General of the Department of Government Information on 5 November 2011 requires that all ‘websites carrying any content relating to Sri Lanka or the people of Sri Lanka… uploaded from Sri Lanka or elsewhere’ be formally registered and accredited by the government. The Ministry justified this action on the grounds that some sites had carried messages that represented insults to political leaders as government officials have been implicated in a number of corruption scandals. Such acts raise significant questions about freedom of information and freedom of speech in post-war Sri Lanka.

Similarly, in March 2012 the latest directive in a string of government efforts to censor news and information was issued in which the Defence Ministry hand-delivered letters to targeted online media and CSOs ordering them to seek approval from government before sending any mobile news (SMS) alerts pertaining to military or police activity. The order is expected to affect more than a dozen news services and an estimated 18 million mobile subscribers, representing up to approximately half of Sri Lanka’s domestic population (although this does account for overseas subscribers). Several of Sri Lanka’s online media sites reported that they had been informed that these measures were most likely taken after SMS news updates on the recent killing of two soldiers in Jaffna, by another soldier, were carried by a number of news agencies.t

Sources:

‘Enemies of the Internet,’ (12 March 2012). Reporters Without Borders. Accessed 15 March t2012. http://en.rsf.org/beset-by-online-surveillance-and-12-03-2012,42061.html.

‘New censorship of SMS news in Sri Lanka,’ (12 March 2012). Groundviews. Accessed 18 March 2012. http://groundviews.org/2012/03/12/new-censorship-of-sms-news-in-sri-lanka/.

Proclamation & c., by the President, (16 June 2010). The Gazette of the Democratic Socialist Republic of Sri Lanka – Extraordinary. Accessed 25 May 2011. Available from: http://www.documents.gov.lk/Extgzt/2010/PDF/Jun/1658_19/1658_19%20(E).pdf.

Reddy, B.M., (9 Nov 2010). Reconciliation panel’s term extended,’ The Hindu. Accessed 1 December 2010. http://www.hindu.com/2010/11/09/stories/2010110962020700.htm.

‘Sri Lankan war inquiry commission opens amid criticism,’ (11 August 2010). BBC News South Asia. Accessed 10 December 2010. http://www.bbc.co.uk/news/world-south-asia-10934663.

Thiruvengadam, M., (12 March 2012). ‘Sri Lanka limits news texts about military, police: tThe Ministry of defence hand-delivered an order to news organizations Monday,’ tGlobal Post. Accessed 18 March 2012. http://www.globalpost.com/dispatch/news /regions/asia-pacific/120312/sri-lanka-limits-news-military-police.

‘Web censorship in Sri Lanka: Documenting a growing trend,’ (8 November 2011). Groundviews. Accessed 25 March 2012. http://groundviews.org/2011/11/08/web-censorship-in-sri-lanka-documenting-a-growing-trend/.

Peer Reviewer4480 Opinion Agree with Comments
Peer Reviewer4480 Comments No information on internal military court martials relating to bribery and corruption are publicly available.
TI Reviewer4738 Opinion Agree
Personnel 36. Is whistleblowing encouraged by the government, and are whistle-blowers in military and defence ministries afforded adequate protection from reprisal for reporting evidence of corruption, in both law and practice?
Score 0.0
Assessor Comments Without a Freedom of Information Act, there are only a limited number of outlets available for whistleblowers to report information. These are restricted to a few newspapers and blogs. The new government has drafted a Freedom of Information Act [5], which was approved by the Sri Lankan cabinet in April [6]. While this is a significant step in the right direction, the FOI and new government have not proposed any protection for whistleblowers.

Sirisena’s election manifesto promised “an efficient regulatory mechanism (that) will be instituted on the basis of encouraging public service communication services while consolidating to the maximum freedom of the mass media and the Right to Information” [5]. Despite this, some recent changes cast doubts on the government’s willingness to improve media freedom; for example, CSOs have voiced concerns about Sirisena government’s decision to re-establish the Sri Lankan Press Council, a media regulatory body which gives the government powers to jail journalists in connection with their reporting [8].

In December 2014, the Chief Justice of Sri Lanka stressed the need to protect whistleblower reporting corruption [7]. Corruption can only be reported as a written complaint to the Commission for Investigation of Allegations of Bribery and Corruption (CIABOC).

In 2007, USAID Sri Lanka published a report which recommended that whistleblowing must be made a legal duty on part of all public officers and members of parliament, in addition to strengthening whistleblower protection. To this end, it also drafted some amendments to the constitution to encourage whistleblowing [3].

Overall, there is evidence that the government is making progress to encourage freedom of information and to detect corruption but it remains to be seen as to how much the government will be committed to implementing media freedom and whistleblower protection.

Historically, Sri Lanka has not been open to whistleblowing. For example, in early May 2014, former Acting Director, State Accounts, Mr. H.S. Wanasinghe was prosecuted for whistleblowing [4] under the Rajapaksa government.

Response to Peer Reviewer 2: Agree with comments above. Score brought down to 0 to better align with the initial assessment as well as peer review comments.

Assessor Sources 1- &quoute;Implement Freedom of Information Bill, hang your code&quoute;, Daily Mirror, 5 June 2013, http://www.dailymirror.lk/opinion/172-opinion/30404-editorial-implement-freedom-of-information-bill-hang-your-code-.html

2- &quoute;Top level executives fearful of social media revolution&quoute;, Ceylon Today, 16 June 2013, http://ceylontoday.lk/22-35142-news-detail-top-level-executives-fearful-of-social-media-revolution.html

3- &quoute;Synopsis of Anti-corruption and related Laws&quoute;, USAID Sri Lanka, section 10, pp.30-32, http://www.ciaboc.gov.lk/web/images/pdf/publications/Synopsis_of_Anticorruption.pdf

4- &quoute;Whistle blowing statistics officer Wanasinghe to be interdicted – PSC&quoute;, Profit Lanka, 7 May 2014, http://profit.lk/index.php/latest-news/item/227-whistle-blower-wanasingha-to-be-interdicted, accessed on 17 May 2014

5- FT Daily, (2015). A Whistleblower Protection Act needs to accompany proposed Freedom of Information Act. [online] Available at: http://www.ft.lk/article/386007/A-Whistleblower-Protection-Act-needs-to-accompany-proposed-Freedom-of-Information-Act [Accessed 20 Sep. 2015].

6- Adaderana, (2015). Cabinet approves draft bills on Right to Information and National Audit. [online] Available at: http://www.adaderana.lk/news/30599/cabinet-approves-draft-bills-on-right-to-information-and-national-audit [Accessed 20 Sep. 2015].

7- Dailynews.lk, (2014). Chief Justice calls for whistle-blower laws | Daily News Online : Sri Lanka’s National News. [online] Available at: http://www.dailynews.lk/?q=local/chief-justice-calls-whistle-blower-laws [Accessed 20 Sep. 2015].

8- Committee to Protect Journalists, (2015). Sri Lanka moves to re-establish restrictive media regulatory body. [online] Available at: https://cpj.org/2015/07/sri-lanka-moves-to-re-establish-restrictive-media-.php [Accessed 20 Sep. 2015].

Peer Reviewer4037 Opinion Agree with Comments
Peer Reviewer4037 Comments The process for collecting evidence of the GOSL’s Lessons Learnt and Reconciliation Commission (LLRC) has been criticised for its limited mandate, flawed structure, lack of independence, being inherently biased, and failure to meet minimum basic international standards to offer protection to witnesses who testified as well as simply reinforcing the government’s ‘official’ narrative of the CA and end of the war. This suggests that ‘whistleblowing’ is not only discouraged but further that those persons that do come forward to report crimes and/or inappropriate behaviour are unlikely to be afforded protection.

In addition, a Report released by Amnesty International in 2013 highlights their knowledge of at least three cases between 2009 and 2012 where individuals suspected of assisting international researchers to investigate potential human rights abuses in the final phases of the war were detained for extended periods of time by the authorities with one victim being tortured. It is reasonable to assume that similar acts of intimidation and violence may be committed against members of the military and defence ministries should they seek to speak out against and/or report incidences of corruption and improper conduct and human rights abuses carried out by government and/or security personnel.

Sources:

Reddy, B.M., (9 Nov 2010). Reconciliation panel’s term extended,’ The Hindu. Accessed 1 December 2010. http://www.hindu.com/2010/11/09/stories/2010110962020700.htm.

‘Sri Lankan war inquiry commission opens amid criticism,’ (11 August 2010). BBC News tSouth Asia. Accessed 10 December 2010. http://www.bbc.co.uk/news/world-south-tasia-10934663.

‘Sri Lanka’s Assault on Dissent,’ (2013). Amnesty International. Accessed 1 Feb 2013. Available from: http://www.amnesty.org/en/library/asset/ASA37/003/2013/en/338f9b04-097e-4381-8903-1829fd24aabf/asa370032013en.pdf.

Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree with Comments
TI Reviewer4738 Comments Legislation and mechanisms applicable to military and official personnel may exist to report corruption; however, there is no evidence that they are implemented, nor is whistle-blowing actively encouraged. There is little trust among officials and personnel that they would be provided adequate protection if they reported corrupt activity.
Personnel 37. Is special attention paid to the selection, time in post, and oversight of personnel in sensitive positions, including officials and personnel in defence procurement, contracting, financial management, and commercial management?
Score 0.0
Assessor Comments There are no vetting requirements in selection procedures, in practice. With the previous government, there was evidence of nepotism in most appointments. For example, President Rajapaksa chose his brother Gotabaya Rajapaksa to be the Defence Secretary, it is assumed, in order to retain close control of the department. Similarly, another brother Basil Rajapaksa headed the Finance Ministry.

Reports indicate that military appointments are also politically influenced. For example there were allegations of bias in the appointment of the Commandant of the Sri Lanka Army Volunteer Force, Major General Prasad Samarasinghe to the post of Army Chief of Staff in May 2014. The news release stated that he was appointed to the post &quoute;on the recommendations of Secretary to the Ministry of Defence and Urban Development, Gotabhaya Rajapaksa&quoute;. [1] Several key private sector positions are also given to serving military personnel [2].

No further public information could be found related to appointments, promotions, rotations and oversight of the post-retirement activities of personnel and whether the aforementioned issues have been addressed by the new government.

Assessor Sources 1- &quoute;Maj. Gen. Prasad Samarasinghe appointed Army Chief of Staff &quoute;, Lanka Business Online, 14 May 2014, http://www.ceylontoday.lk/16-63834-news-detail-maj-gen-prasad-samarasinghe-appointed-army-chief-of-staff.html
t
2- &quoute;Concerns Raised over Sri Lanka Navy Chief Heading Shipping Firm&quoute;, Lanka Business Online, 30 October 2013, http://www.lankabusinessonline.com/news/concerns-raised-over-sri-lanka-navy-chief-heading-shipping-firm/1967341939

3- Interview with former military officer, 06 May 2014.

Peer Reviewer4037 Opinion Agree with Comments
Peer Reviewer4037 Comments Amendment 18 to the Constitution passed in September 2010 effectively removes legislative safeguards against abuse and places the responsibility to legislate, administer policy, and articulate the law even more tightly with the governmental ‘elite’. This has helped enable the continued centralisation of President Rajapaksa’s rule within a small group of individuals representing President Rajapaksa’s inner circle that includes key ministerial posts of Defence Secretary and Minister of Economic Development respectively assigned to his brothers, Gotabaya and Basil Rajapaksa, with other important positions awarded to loyal supporters.

Sources:

‘The 18th Amendment To Sri Lanka’s Constitution,’ (21 September 2010). Lanka Solidarity. Accessed 1 December 2010. http://www.lankasolidarity.org/statements/ 18th-amendment-sri-lanka%E2%80%99s-constitution.

‘Parliament approves 18th Amendment with overwhelming majority’ (8 Sept 2010). News tLine. Accessed 1 December 2010. http://www.priu.gov.lk/news_update/ Current_Affairs/ca 201009/20100908parliament_approves_18.htm

‘Lively discussion on 18th Amendment and Beyond,’ (1 April 2011). Transparency tInternational Sri Lanka, Accessed 25 May 2011. http://www.tisrilanka.org/?cat=66.

Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Personnel 38. Is the number of civilian and military personnel accurately known and publicly available?
Score 2.0
Assessor Comments There is no breakdown of total troop figures on the website of the Ministry of Defence and Urban Development. Individual services do not give any publicly available figures either.

However, the details are actually available in the annual budget estimate of the department. The budget estimate is broken down by service and each one with an &quoute;employment profile&quoute; detailing numbers according the following levels: Senior, Tertiary, Secondary, Primary, Other.

There is an employment profile for the Ministry of Defence and Urban Development as well, which perhaps includes civilian figures.

Assessor Sources A search of the websites of the Army, Navy and the Air Force gave no available information about troop figures.

1- &quoute;Employment Profile&quoute; in Budget Estimate – 2014, Ministry of Defence and Urban Development, pp. 345, 349. http://www.treasury.gov.lk/images/depts/nbd/docs/budgetestimates/2014/headlist/103/103.pdf

2- &quoute;Employment Profile – Army&quoute; in Budget Estimate – 2014, Ministry of Defence and Urban Development, p.361 , http://www.treasury.gov.lk/images/depts/nbd/docs/budgetestimates/2014/headlist/103/222.pdf

3- &quoute;Employment Profile – Navy&quoute; in Budget Estimate – 2014, Ministry of Defence and Urban Development, p.367, http://www.treasury.gov.lk/images/depts/nbd/docs/budgetestimates/2014/headlist/103/223.pdf

4- &quoute;Employment Profile – Air Force&quoute; in Budget Estimate – 2014, Ministry of Defence and Urban Development, p.371, http://www.treasury.gov.lk/images/depts/nbd/docs/budgetestimates/2014/headlist/103/224.pdf

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Personnel 39. Are pay rates and allowances for civilian and military personnel openly published?
Score 3.0
Assessor Comments Details about pay scale, and some allowances are published in the form of a government gazette which can be accessed from Treasury website. Some details of Army salary ranges are also available on the Army website.

Any changes in pay-scale, are also published as a circular (eg source 4). Rules governing pay and pensions are in the government’s &quoute;Army and Air Force Pay and Gratuites Code 1981&quoute; [5], and subsequent amendments. Any changes to pay and pensions are also announced as press releases by the government[6].

Response to Peer Reviewer 2: Agree with comments. Score changed to 3.

Assessor Sources 1- Pay and Allowances in the Sri Lankan Army, http://www.army.lk/PayAndOtherEnglish.php , accessed on 17 May 2014

2- Salaries published in government gazattes, the latest available gazette is from 2011, available at http://documents.gov.lk/gazette/2011/PDF/Jan/28Jan2011/I-IIA(E)2011.01.28.pdf . (Another gazette of a job ad from 2014 avialable at http://www.pubad.gov.lk/web/eservices/images/stories/special_notice/1877_2014.08.22(e).pdf )

3- Salaries and allowances for the different services as published in 2006, available at http://documents.gov.lk/gazette/2006/Pdf/November/10Nov06/10NovAE.pdf

4- http://www.pubad.gov.lk/web/index.php?option=com_circular&task=detail&iid=1284&keyword=service&fld_type=0&fld_searchby=0&Itemid=109&lang=en

5- Army and Air Force Pay and Gratuities Code 1981, Sri Lanka

6- &quoute;Revised pensions to pre-2006 retirees with August pension&quoute;, Government of Sri Lanka Press Release, 15 July 2015, http://www.news.lk/news/sri-lanka/item/8697-revised-pensions-to-pre-2006-retirees-with-august-pension

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Disagree
Peer Reviewer4480 Suggested Score 3
Peer Reviewer4480 Comments Rates of pay and allowances are published in the publicly available in the Government Gazette; for example see page 1317 of this gazette

http://documents.gov.lk/gazette/2006/Pdf/November/10Nov06/10NovAE.pdf

This was also confirmed through an interview with a former senior military official on 03.10.2014.

TI Reviewer4738 Opinion Agree
Personnel 40. Do personnel receive the correct pay on time, and is the system of payment well-established, routine, and published?
Score 4.0
Assessor Comments The Army Pay and Gratuities Act, and the Air Force Pay and Gratuities Act, and their subsequent amendments form the basic guide to the payment system. These acts were enacted in 1981 and amendments are made available as Circular[5]. There is a set guideline for payment in Sri Lanka and reports issued by the treasury (source 2 and 3) indicate that a Government Payroll System (GPS) manages timely payment for all government employees. Information regarding this is not publicly available.

The interviewee confirmed that payment is made on time and there is an efficient payroll system. He re-iterated that the morale in the military is high owing to the guarantees of pay, healthcare etc.

Total payments are published in financial statements of the Defence Ministry but a detailed breakdown is not provided between military and civilian payments. There are no publicly available articles about issues related to pay.

An announcement in July 2015 by the PM is indicative of possible pension anomalies that has existed in the public sector [4]. The PM started a process to rectify major anomalies, &quoute;anomalies of over 500,000 pensioners who retired from government service before 2006 are to be rectified&quoute; [4]. There is no further information about the nature of these anomalies and it is unclear whether these issues may be prevalent in the payment system for serving personnel.

Response to Peer Reviewer 2: Agree with comments. Score raised to 4.

Assessor Sources 1- Interview with former military officer, 06 May 2014.
2- Treasury operations circular no 5/2010 on improvements to Cash-Flow management process, Ministry of Finance and Planning, http://www.treasury.gov.lk/circulars/depts/tod/TOD-2010-5-eng.pdf
3- &quoute;Guideline for Internal Auditing of Computerized and Manual
Personnel Emolument Records&quoute;, Department of Management Audit, 19 Feb 2010, http://www.treasury.gov.lk/circulars/depts/dma/DMA-2010-4-eng.pdf
4- &quoute;PM wants pensioners’ anomalies rectified soon&quoute;, Daily News, 10 July 2015, http://www.dailynews.lk/?q=local/pm-wants-pensioners-anomalies-rectified-soon
5-Ministry of Public Administration and Home Affairs, New Scheme for awarding of Pensions, payment of Commuted Gratuities and Payment of Death Gratuities, Issue Date 1995, http://www.pubad.gov.lk/web/index.php?fld_year=0&fld_type=1&fld_searchby=0&keyword=gratuities&btnSubmit=Search&lang=en&Itemid=109&task=search&o
Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Disagree
Peer Reviewer4480 Suggested Score 4
Peer Reviewer4480 Comments Timely payment is not an issue, and payments are now paid directly to bank accounts.

Interview with former senior military officer 03.10.2014.

TI Reviewer4738 Opinion Disagree
TI Reviewer4738 Suggested Score 3
TI Reviewer4738 Comments Personnel generally receive the correct pay on time. However, there may be minor shortcomings in the clarity or transparency of the payment system, and basic pay may occasionally be subject to discretionary adjustments.

According to interviews with a former defence ministry official, discretionary adjustments are not questioned by the armed forces.

Personnel 41. Is there an established, independent, transparent, and objective appointment system for the selection of military personnel at middle and top management level?
Score 2.0
Assessor Comments The armed forces have internal promotion and appointment boards. There are promotion examinations in all three services at various levels [ see for example, source 4]. The Public Service Commission (PSC) has procedural rules governing appointment, promotion and transfer of public officers [5].

Procedures were reported to be largely adhered to in practice [3]. Some news reports from the opposition, and the Tamil sections have previously alleged that nepotism is a problem in senior military positions [sources 6, 1, 2]. Another interviewee [1] asserted that factors like close relations with the appointing officer, family background (and whether you a related/known family), were considered important.

The new government has been vocal about ending nepotism in the country[7] which was also one of President Sirisena’s election pledge. However, the President has made some controversial promotions of officers which lack clear justification and media reports speculate that they have been promoted due to political reasons:

(a) Major General Jagath Dias was promoted as chief of staff,the second highest ranking position in the Sri Lankan Army in May 2015 despite allegations of war crimes on his division (57th division) during the final stages of the LTTE conflict [8].
(b) Former army chief Sarath Fonseka was given the highest military rank of &quoute;Field Marshall&quoute; in March 2015 and said he was unjustly treated by the previous Rajapaksa government. Fonseka was jailed for treason under the Rajapksa regime. This has widely been seen as a political move to empower Rajapaksa’s enemy [9].
(c) The President’s son-in-law has also been given a position in the Ministry of Defence which has led to doubts about the objectivity of the appointment.

Response to Peer Reviewer 2: While it is agreed that these systems are in place, nepotism was a major issue with the previous government and the public commitment stated by the new government to end this practice cannot as yet be seen to have translated in practice. Score maintained.

Assessor Sources 1- Interview with former military officer, 06 May 2014.
2- Nirmala Kananngara, &quoute;Nepotism Rules?&quoute;, The Sunday Leader, 25 August 2013, http://www.srilankaguardian.org/2014/01/when-politics-becomes-family-business.html
3- Interview with former senior military official 03.10.2014.
4- Sri Lanka Air Force website, Directorate of Training, http://www.airforce.lk/pages.php?pages=directorate_of_training
5- Procedural rules governing appointment, promotion and transfer of public officers, Gazette notice, 29 February 2009, http://www.psc.gov.lk/web/images/pdf/english/2._Rules_Regulations/2.1_Procedural_Rules/2_1_1_Procedural%20Rules%20of%20the%20PSC.pdf
6- More military appointments and promotions, Tamil Guardian, August 2013, http://www.tamilguardian.com/article.asp?articleid=2440
7- CSW, (2015). President Sirisena urged to uphold election pledge – Christian Solidarity Worldwide. [online] Available at: http://www.csw.org.uk/2015/01/13/news/2437/article.htm [Accessed 20 Sep. 2015].
8- Human Rights Watch, (2015). Sri Lanka: New Army Chief a Blow to Justice. [online] Available at: https://www.hrw.org/news/2015/05/17/sri-lanka-new-army-chief-blow-justice [Accessed 20 Sep. 2015].
9- The Guardian, (2015). Ex-army chief Sarath Fonseka, jailed for treason, made field marshal in Sri Lanka. [online] Available at: http://www.theguardian.com/world/2015/mar/23/ex-army-chief-sarath-fonseka-jailed-for-treason-made-field-marshal-in-sri-lanka [Accessed 20 Sep. 2015].
Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Disagree
Peer Reviewer4480 Suggested Score 3
Peer Reviewer4480 Comments The armed forces have internal promotion and appointment boards, and their procedures are largely adhered to in practice. Promotions are mostly based on seniority.

Interview with former senior military official 03.10.2014.

TI Reviewer4738 Opinion Agree
Personnel 42. Are personnel promoted through an objective, meritocratic process? Such a process would include promotion boards outside of the command chain, strong formal appraisal processes, and independent oversight.
Score 1.0
Assessor Comments Under the previous Rajapksa governement, nepotism was a problem especially owing to several key civilian and military positions held by members of Rajapaksa family. The new President has pledged to end nepotism [3] but it is too early to assess whether this has lead to any changes.

Some top level military promotions by the new President have come under question as explained in Q41 of this survey. In addition, some of his civilian appointments are also indicative of possible risk of nepotism. For example, Kumarasinghe Sirisena, the president’s brother, has been appointed chairman of Sri Lanka Telecom[3]; The President’s son-in-law has also been given a position in the Ministry of Defence[3]. These have lead to some doubts over the new government’s pledge to end nepotism.

The interviewee said that performance is a major criteria for promotion but relations with the promoting official and family background play a role in getting senior positions and appointments. Some recruitment procedures are made available on the website of the Ministry of Defence, but these are outdated and very limited.

There is no evidence of oversight of the promotion process.

Assessor Sources 1- Interview with former military officer, 06 May 2014.

2- Recruitment Procedures, Ministry of Defence and Urban Development, http://www.defence.lk/new.asp?fname=Recruitment_Procedures_2013, accessed on 7 May 2014

3- Taylor Dibbert, T. (2015). Sri Lanka: Can Sirisena Deliver on Reforms?. [online] The Diplomat. Available at: http://thediplomat.com/2015/04/sri-lanka-can-sirisena-deliver-on-reforms/ [Accessed 20 Sep. 2015].

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Personnel 43. Where compulsory conscription occurs, is there a policy of not accepting bribes for avoiding conscription? Are there appropriate procedures in place to deal with such bribery, and are they applied?
Score N/A
Assessor Comments There is no compulsory conscription in Sri Lanka.
Assessor Sources 1- Canada: Immigration and Refugee Board of Canada, &quoute;Sri Lanka: Whether military service is compulsory and if so, for how long; whether there are contractual arrangements made in the military for determined periods of time; penalties faced by deserters if they are caught; whether there is a public list of deserters; whether the army issues arrest warrants against deserters&quoute; (2002-2007), 24 July 2007, LKA102566.E, available at: http://www.refworld.org/docid/47d6546028.html
Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Personnel 44. With regard to compulsory or voluntary conscription, is there a policy of refusing bribes to gain preferred postings in the recruitment process? Are there appropriate procedures in place to deal with such bribery, and are they applied?
Score N/A
Assessor Comments There is no conscription – voluntary or compulsory – in Sri Lanka.
Assessor Sources &quoute;Sri Lanka: Whether military service is compulsory and if so, for how long; whether there are contractual arrangements made in the military for determined periods of time; penalties faced by deserters if they are caught; whether there is a public list of deserters; whether the army issues arrest warrants against deserters (2002-2007)&quoute;, Canada: Immigration and Refugee Board of Canada, 24 July 2007, LKA102566.E, available at: http://www.refworld.org/docid/47d6546028.html [accessed 20 September 2015]
Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Disagree
Peer Reviewer4480 Suggested Score 2
Peer Reviewer4480 Comments Bribery is generally not tolerated, and there are rules against it. But it does occur sporadically.

Interview with former senior military officer 03.10.2014.

TI Reviewer4738 Opinion Agree
Personnel 45. Is there evidence of ‘ghost soldiers’, or non-existent soldiers on the payroll?
Score 1.0
Assessor Comments Sri Lanka has been battling the problem of desertions from the military owing to the bloody counter-insurgency war against the LTTE. Reports indicate that there were ghost soldiers in the payroll and the country has been attempting to find deserters, as well as amend the payroll.

A news story in 2014 said Sri Lanka’s security authorities are searching for 30,000 army deserters nearly five years after ending of the war and that deserters had been in the military’s books for a long period of time. It also said that these names will be removed from the payrolls upon completion of the ongoing investigations.

Based on news reports from as early as 2004 [3], it appears that Sri Lanka has been having the problem of ghost soldiers on payroll for a long time. A report from 2004, identified that a large number of deserters were on payroll.

Assessor Sources 1- &quoute;30,000 Army deserters on the loose&quoute;, Ceylon Today, 27 January 2014, http://www.ceylontoday.lk/51-54089-news-detail-30000-army-deserters-on-the-loose.html , accessed on 17 May 2014

2- &quoute;Over to you, the Commander in Chief of Armed Forces&quoute;, The Island, 14 June 2004, http://www.island.lk/2004/06/14/opinio09.html , accessed on 17 May 2014

3- &quoute;Politicos using deserters in polls campaign, says Police Hq&quoute;, The Island, 28 February 2004, http://www.island.lk/2004/02/28/news03.html (accessed on 15 August 2014).

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Personnel 46. Are chains of command separate from chains of payment?
Score 3.0
Assessor Comments The chain of payment is separate from the chain of command. Payment and pensions are handled by different teams under each service. In case of any dispute regarding payment or pensions, the Commander of the respective service would be involved in the decision-making process [1]. Payment is reported to be made on time and soldiers are entitled to fringe benefits including transport etc [2].
The Army Pay and Gratuities Act, and the Air Force Pay and Gratuities Act, and their subsequent amendments form the basic guide to the payment system. These acts were enacted in 1981 and amendments are made available as Circular [4].

Response to Peer Reviewer 1: Agreed and score raised from 2 to 3.

Assessor Sources 1- &quoute;Widow to receive Pay and Pension again&quoute;, Daily Mirror, October 2011, http://print2.dailymirror.lk/news/news/37426.html

2- Interview with former military officer, 06 May 2014.

3- Army and Air Force Pay and Gratuities Code 1981, fhttp://www.pensions.gov.lk/index.php?option=com_phocadownload&view=category&id=2:armed-forces-pensions-and-gratuities-codes&Itemid=60

4- Ministry of Public Administration and Home Affairs, New Scheme for awarding of Pensions, payment of Commuted Gratuities and Payment of Death Gratuities, Issue Date 1995, http://www.pubad.gov.lk/web/index.php?fld_year=0&fld_type=1&fld_searchby=0&keyword=gratuities&btnSubmit=Search&lang=en&Itemid=109&task=search&option=com_circular

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Disagree
Peer Reviewer4480 Suggested Score 3
Peer Reviewer4480 Comments A higher score would be a better fit for the comments and sources provided.

Chains of payment are generally separate from chains of command as they are centralised, and payments are made directly to bank accounts. This is confirmed by the following source:

Interview with former senior military official 03.10.2014.

TI Reviewer4738 Opinion Agree
Personnel 47. Is there a Code of Conduct for all military and civilian personnel that includes, but is not limited to, guidance with respect to bribery, gifts and hospitality, conflicts of interest, and post-separation activities?
Score 2.0
Assessor Comments There appears to be no formal code of conduct covering civilian personnel. In September 2015, the new government appointed a sub-committee to establish a Code of Conduct for cabinet ministers [5]. A news report cited a cabinet spokesperson as saying, &quoute;Clause 42 (2) of the Constitution stipulates that Cabinet of Ministers, who are in charge of the steering of the administration of the government and are in charge of the conduct of that administration, are bound to be collectively responsible for Parliament and to respond to the Parliament. Provision of a pledge is also intended to establish a new moral political culture by protecting the noble traditions of the Cabinet and to display their dedication to safeguard this tradition.&quoute;[5]

The Armed Forces do not have any such code of conduct; there is no Joint Military doctrine either. Each service is guided by a respective legislative act – Army Act [1], Navy Act [2], and the Air Force Act [3]. The Army Act and Air Force Act each have a section discouraging &quoute;Disgraceful Conduct&quoute; and it broadly states: &quoute;every officer who, being a person subject to military law, behaves in a scandalous manner, unbecoming the character of an officer and a gentleman, shall be guilty of a military offence&quoute;. Definitions include various activities including misappropriations, theft or criminal breaches of trust, wilful damage of property etc. The Navy has the same rules but a few more definitions are added in relation to causing damage to ships/property wilfully.

There is no clause specific to bribery, gifts and hospitality, conflicts of interest or post-separation activities in any of the Acts.

According to the interviewee, post-separation corruption and corruption related to deserters are a problem in Sri Lanka. These include in military financial affairs, interference in promotion chains, robbery etc. The military does have a pension programme to benefit soldiers after retirement.

Assessor Sources 1- &quoute;Disgraceful Conduct&quoute; in Army Act of Sri Lanka, available at http://www.defence.lk/main_pub.asp?fname=armyact, accessed on 16 May 2014
t
2- &quoute;Offenses in relation to Property&quoute; in Navy Act of Sri Lanka, available at http://www.defence.lk/main_pub.asp?fname=navyact , accessed on 16 May 2014
t
3- &quoute;Disgraceful Conduct&quoute; in Air Force Act of Sri Lanka, available at http://www.defence.lk/main_pub.asp?fname=airfact, accessed on 16 May 2014
t
4- Interview with former military officer, 06 May 2014.
5- Daily News, (2015). Cabinet sub-committee to be appointed | Daily News Online : Sri Lanka’s National News. [online] Available at: http://www.dailynews.lk/?q=political/cabinet-sub-committee-be-appointed [Accessed 20 Sep. 2015].
Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree with Comments
TI Reviewer4738 Comments Interviews with a former military officer confirm that whilst there is a code of conduct drilled in during training, it is never referred to or held to a high moral standard.
Personnel 48. Is there evidence that breaches of the Code of Conduct are effectively addressed ,and are the results of prosecutions made publicly available?
Score 2.0
Assessor Comments There are some intermittent news reports of corrupt and fraudulent practices [1] which, in theory, are a breach of respective Army, Air Force, and Navy Acts (explained in Q46).

The results of prosecutions are not always made publicly available. The Commission for Investigation of Allegations Bribery and Corruption (CIABOC) has confirmed a secrecy requirement under Bribery Act of 1954, which does not allow them to disclose information on prosecutions. A formal request can be made by writing to them should someone wish to gather information about hearings. The CIABOC website includes information about some raids and convictions as a recent case from February 2015 involves the arrest of an army officer for receiving a bribe [8].

Owing to the fact that the war crimes and the LLRC have gained international attention, some details about the investigations are made publicly available. For exmaple, the LLRC recommendations 9.9, 9.37a, was to investigate specific instances of civilian casualty, and punish wrongdoers. The September 2014 National Plan, identified that the course of action was to use the system provided for in the Criminal Procedure Code to originate a complaint and give such mechanism sufficient publicity [5].

An Army Court of Inquiry CoI concluded its investigations about civilian casualties in Feb 2013; it was reported that the operations were conducted strictly in accordance with the &quoute;Zero Civilian Casualty&quoute; directive [6]. The credibility of the process was questioned too (see source 7 for example).

Response to Peer Reviewer 2: It is not clear whether all prosecutions are made public even now, although there is evidence of some enforcement. Further, as discussed in the previous question, &quoute;gifts and hospitality, conflicts of interest or post-separation activities&quoute; are not discussed in the Codes and as such, a higher score cannot be awarded. Score maintained.

Assessor Sources 1- &quoute;Sri Lanka Army arrests soldiers trying to sell dry rations to a trader&quoute;, Colombo Page, 19 July 2014, http://www.colombopage.com/archive_14B/Jul19_1405783181CH.php

2- &quoute;Army to be tough on video of harassing recruits&quoute;, Sunday Observer, 22 March 2014, http://www.sundayobserver.lk/2014/03/23/oostory.asp?sid=20140322_03&imid=Army1.jpg&dt=%5BMarch%2022%202014%5D

3- Convictions, Commission for Investigation of Allegations of Bribery and Corruption, http://www.ciaboc.gov.lk/web/index.php?option=com_content&view=category&layout=blog&id=35&Itemid=37&lang=en, accessed on 15 May 2014

t
4- Contacted &quoute;General Enquiries&quoute; in the Commission for Investigation of Allegations of Bribery and Corruption, on +94-11-2559923 on 19 May 2014.

5- &quoute;National Plan of Action for the Implementation of LLRC Recommendations – Responsibilities by Thematic Area &quoute;, September 2014, http://www.llrcaction.gov.lk/assets/downloads/npoa/en/NPoA-September-2014-Thematic-Area-ENG.pdf , p.2

6- &quoute;LLRC Observations Cleared; Army Commander Hands Over Court of Inquiry Report to Secretary Defence&quoute;, MoD Press Release, 4 October 2014, http://www.defence.lk/new.asp?fname=LLRC_Observations_Cleared_Army_Commander_Hands_Over_Court_of_Inquiry_Report_to_Secretary_Defence_20130410_06

7- &quoute;Army Inquiry on ‘War Crimes’ No Longer Credible&quoute;, Asian Tribune, 6 Nov 2012, http://www.asiantribune.com/news/2012/11/06/army-inquiry-%E2%80%98war-crimes%E2%80%99-no-longer-credible

8- R11 / 2015, &quoute;Detections and Raids&quoute;, CIABOC, 27 February 2015, http://www.ciaboc.gov.lk/web/index.php?option=com_content&view=category&layout=blog&id=34&Itemid=2&lang=en&limitstart=5

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Disagree
Peer Reviewer4480 Suggested Score 3
Peer Reviewer4480 Comments Officers, Non Commissioned Officers (NCOs) and privates have been court martialled, and the results of these court martials are publicly available in the government gazette. For example, see

http://documents.gov.lk/gazette/Jan2004/09Jan04/09JanI-IE/Govt.pdf

However, the reasoning behind the results is not explained.

TI Reviewer4738 Opinion Agree
Personnel 49. Does regular anti-corruption training take place for military and civilian personnel?
Score 0.0
Assessor Comments There is no evidence regarding anti-corruption training for military and civilian personnel of the Defence Ministry. Although the limited public information on the subject do not allow for a definitive assessment, it is likely that there no such training exists. Sri Lanka has been facing increasing pressure to increase anti-corruption efforts, should such a training have existed then it would presumably be in the government’s best interest to have publicised it via press releases.
Assessor Sources No publicly available information in the form of official announcements, news reports or blog posts provided evidence regarding training for military and civilian personnel of the Defence Ministry.
Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree with Comments
Peer Reviewer4480 Comments The assessor’s view was confirmed in an interview with a former senior military official 03.10.2014
TI Reviewer4738 Opinion Agree with Comments
TI Reviewer4738 Comments Interviews with a former ministry of defence official and former military officer confirm that there is no anti-corruption training in the SL armed forces.
Personnel 50. Is there a policy to make public outcomes of the prosecution of defence services personnel for corrupt activities, and is there evidence of effective prosecutions in recent years?
Score 2.0
Assessor Comments Court martials cover bribery activities and the results are publicly available. But there is uncertainty whether bribery and corruption have been recently prosecuted in court martials.

There are no details about effective prosecutions and the independence of the CIABOC has been severely questioned under former President, Mahinda Rajapaksa. The new government has committed to various anti-corruption measures [3] and plans to revamp the CIABOC [4]. This suggests that there could be a change in future to make public outcomes of prosecutions.

Currently, the CIABOC can only investigate if it has been provided with a written complaint [2]. Many people in Sri Lanka fear giving written complaints against defence officials.

Response to Peer Reviewer 1: Agree with comments. Score raised from 1 to 2.

Assessor Sources 1- Details of Convictions, Commission for the Investigation of Allegations of Bribery and Corruption, http://www.ciaboc.gov.lk/web/index.php?option=com_content&view=category&layout=blog&id=35&Itemid=37&lang=en , accessed on 17 May 2014

2- Interview with former military officer, 06 May 2014.

3- International Business Times UK, (2015). Sri Lanka’s new government to investigate Mahinda Rajapaksa corruption allegations. [online] Available at: http://www.ibtimes.co.uk/sri-lankas-new-government-investigate-mahinda-rajapaksa-corruption-allegations-1483812 [Accessed 20 Sep. 2015].
4- Sunday Leader, (2015). CIABOC To Be Revamped. [online] Available at: http://www.thesundayleader.lk/2015/09/06/ciaboc-to-be-revamped/ [Accessed 20 Sep. 2015].

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Disagree
Peer Reviewer4480 Suggested Score 2
Peer Reviewer4480 Comments Court martials cover bribery activities and the results are publicly available. But there is uncertainty whether bribery and corruption have been recently prosecuted in court martials.

Interview with former senior military officer 03.10.2014

TI Reviewer4738 Opinion Agree
Personnel 51. Are there effective measures in place to discourage facilitation payments (which are illegal in almost all countries)?
Score 1.0
Assessor Comments There are no effective measures in place to discourage facilitation payments other than the broad discouragement of &quoute;fraudulent activities&quoute; under the Army/Navy/Air Force Acts. The Bribery Act of 1954 is outdated despite subsequent amendments, and it only covers the Private Sector.

According to the interviewee, facilitation payments are common in Sri Lanka. Small bribes and gifts are so common that they may just be regarded as &quoute;business as usual&quoute; without getting reported.

Assessor Sources 1- &quoute;Digraceful Conduct&quoute; in Army Act of Sri Lanka, avialable at http://www.defence.lk/main_pub.asp?fname=armyact, accessed on 16 May 2014
t
2- &quoute;Offenses in relation to Property&quoute; in Navy Act of Sri Lanka, available at http://www.defence.lk/main_pub.asp?fname=navyact , accessed on 16 May 2014
t
3- &quoute;Disgraceful Conduct&quoute; in Air Force Act of Sri Lanka, available at http://www.defence.lk/main_pub.asp?fname=airfact, accessed on 16 May 2014
t
4- Interview with former military officer, 06 May 2014.

5- Nihal Ameresekere, &quoute;Some Thoughts On UN Anti-Corruption Day, 9th December 2012&quoute;, Colombo Telegraph, 11 December 2014, https://www.colombotelegraph.com/index.php/some-thoughts-on-un-anti-corruption-day-9th-december-2012/

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Operational 52. Do the armed forces have military doctrine addressing corruption as a strategic issue on operations?
Score 1.0
Assessor Comments The Armed Forces do not have a Joint Military doctrine; there is no doctrine addressing corruption in peace and conflict. Each service is guided by a respective legislative Act [1,2,3] which very broadly outlaws &quoute;fraudulent practices&quoute;.

These acts have a clause on fraudulent practices but the list is not exhaustive and mainly limited to fraudulent enlistment. The Army Act and Air Force Act broadly identify it as an offence if officers, &quoute;commit any other fraudulent act herein before not particularly specified, or any act of a cruel, indecent or unnatural kind&quoute;[1], [3].

The Navy Act has a clause specifically related to corrupt practices with relation to supplies to the Navy under &quoute;Offenses in relation to Property&quoute;. It states in respect of a personnel that he/she, &quoute;fraudulently purchases, sells, or receives any ammunition, provisions, or other naval stores, or who knowingly permits any such embezzlement, purchase, sale or receipt, shall be guilty of a naval offence&quoute;.

Random teams of military police were reportedly deployed to tackle corruption and irregularities within the army in 2014. This indicates that there is some awareness that corruption is an issue, however, there is no specific mention of the word &quoute;corruption&quoute; in any text that guides military operations [2].

Assessor Sources 1- &quoute;Digraceful Conduct&quoute; in Army Act of Sri Lanka, avialable at http://www.defence.lk/main_pub.asp?fname=armyact, accessed on 16 May 2014
t
2- &quoute;Offenses in relation to Property&quoute; in Navy Act of Sri Lanka, available at http://www.defence.lk/main_pub.asp?fname=navyact , accessed on 16 May 2014
t
3- &quoute;Disgraceful Conduct&quoute; in Air Force Act of Sri Lanka, available at http://www.defence.lk/main_pub.asp?fname=airfact, accessed on 16 May 2014

4- &quoute;Militray Police Surveillance Teams to Minimize Malpractices and Corruption&quoute;, Sri Lanka Army Press Release, 19 June 2014, http://www.army.lk/detailed.php?NewsId=8200

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree with Comments
Peer Reviewer4480 Comments The assesor’s view was confirmed in an interview with a former senior military officer 03.10.2014.
TI Reviewer4738 Opinion Agree
Operational 53. Is there training in corruption issues for commanders at all levels in order to ensure that these commanders are clear on the corruption issues they may face during deployment? If so, is there evidence that they apply this knowledge in the field?
Score 0.0
Assessor Comments There are no publicly available reports of commanders and military leaders of any level having received any training on corruption issues. There is a loosely-defined blanket rule that applies to them under the respective Army/Navy/Air Force Act. These include activities like fraudulent purchase/acceptance of ammunition, bribery, double-enlistment etc.

In October 2004, the Commission to Investigate Allegations of Bribery or Corruption reported that it had begun training programmes for the Armed Forces as well [4]. No further information is available about this report, in terms of its implementation and results, making it seem like a one-off report and not a regular training, if it occurred at all.

Assessor Sources 1- &quoute;Disgraceful Conduct&quoute; in Army Act of Sri Lanka, available at http://www.defence.lk/main_pub.asp?fname=armyact, accessed on 16 May 2014

2- &quoute;Offenses in relation to Property&quoute; in Navy Act of Sri Lanka, available at http://www.defence.lk/main_pub.asp?fname=navyact , accessed on 16 May 2014

3- &quoute;Disgraceful Conduct&quoute; in Air Force Act of Sri Lanka, available at http://www.defence.lk/main_pub.asp?fname=airfact, accessed on 16 May 2014

4- &quoute;Army Perks Cut but Politicos Ride On&quoute;, Sunday Times, http://www.sundaytimes.lk/041031/columns/sitrep.html

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree with Comments
Peer Reviewer4480 Comments The assessor’s view was confirmed in an interview with a former senior military officer on 03.10.2014
TI Reviewer4738 Opinion Agree with Comments
TI Reviewer4738 Comments Interviews with a former ministry of defence official reveal that there is no anti-corruption training for personnel involved with peace-keeping missions. In the past, Sri Lankans in peace keeping forces have been accused of misconduct during these missions.
Operational 54. Are trained professionals regularly deployed to monitor corruption risk in the field (whether deployed on operations or peacekeeping missions)?
Score 2.0
Assessor Comments There are no trained professionals deployed to specifically to monitor corruption. There are military police units which are tasked with monitoring corruption. Their role is more investigative and there are no regular deployments.

A press release from the Army has indicated that the Sri Lanka Corps of Military Police (SLCMP) have started deploying random surveillance teams which are intended to monitor irregularities, corruption and malpractices taking place in military formations. These missions by the teams are random and there is no policy of regular deployment alongside military troops during missions. The SLCMP is trained in monitoring corruption and malpractices. However, there are no other reports about deployment of these teams, suggesting that the deployment could have been a one-off (hence a score of 1). Existence and deployment of these teams could not be independently verified.

The Army has 6 SLCMP units and an Special Investigations Unit. According to the Army, the &quoute;Provost Marshal responsible for advice to the Commander of the Army on all Provost Matters will be responsible to uphold Military Law and maintain Military Discipline in War and Peace&quoute;.

Assessor Sources 1- Interview with former military officer, 06 May 2014.
2- &quoute;Military Police Surveillance Teams to Minimize Malpractices, Corruption & Irregularities&quoute;, 19 July 2014, http://www.army.lk/detailed.php?NewsId=8200
3- Provost Marshall, http://www.army.lk/slcmp/
Peer Reviewer4037 Opinion Agree with Comments
Peer Reviewer4037 Comments Although not directed specifically at corruption as such, in May 2010 the government establishment of the Lessons Learnt and Reconciliation Commission (LLRC) charged with inquiring into events that took place between February 2002 and May 2009 including the facts and circumstances which led to the failure of the Ceasefire Agreement, whether any person, group, or institution is directly or indirectly responsible, the institutional administrative and legislative measures necessary to prevent any recurrence of such events in the future, and to ‘promote further national unity and reconciliation among all communities’. The LLRC submitted its Report to the President on 15 November 2011 and was made public on 16 December 2011 containing 285 recommendations for advancing national reconciliation. Members of the LLRC were generally well-respected Sri Lankans with significant legal and public service expertise, although the Report has been criticised as inherently flawed and biased toward the current government and defence forces narrative of events surrounding the end of the war.

Sources:

‘Final report of Lessons Learnt and Reconciliation Commission (LLRC) tabled in Parliament,’ (16 Dec 2011). transCurrents. Accessed 10 January 2012. http://transcurrents.com/news-views/archives/6725.

Proclamation & c., by the President, (16 June 2010). The Gazette of the Democratic Socialist Republic of Sri Lanka – Extraordinary. Accessed 25 May 2011. Available from: http://www.documents.gov.lk/Extgzt/2010/PDF/Jun/1658_19/1658_19%20(E).pdf.

‘Report of the Commission of Inquiry on Lessons Learnt and Reconciliation,’ (November t2011). Democratic Socialist Republic of Sri Lanka. Accessed 10 December 2011. thttp://slembassyusa.org/downloads/LLRC-REPORT.pdf.

Senaratne, Kalana. (18 December 2011). ‘The LLRC Report: A Critical Reading.’ Groundviews. http://groundviews.org/2011/12/18/the-llrc-report-a-critical-treading/?doing_wp_cron=%201366128871.1876618862152099609375.

Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Operational 55. Are there guidelines, and staff training, on addressing corruption risks in contracting whilst on deployed operations or peacekeeping missions?
Score 0.0
Assessor Comments There is no publicly available information about any such training or guidelines.
Assessor Sources A search of publicly available results yielded no information.
Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Not Qualified
TI Reviewer4738 Opinion Agree with Comments
TI Reviewer4738 Comments Interviews with a former ministry of defence official reveal that there is no anti-corruption training for personnel involved with peace-keeping missions. In the past, Sri Lankans in peace keeping forces have been accused of misconduct during these missions.
Operational 56. Private Military Contractors (PMCs) usually refer to companies that provide operational staff to military environments. They may also be known as security contractors or private security contractors, and refer to themselves as private military corporations, private military firms, private security providers, or military service providers.
Score 1.0
Assessor Comments There is evidence to prove that PMCs operated or still operate in Sri Lanka. Legislation covering the use of PMCs is the &quoute;Regulation of Private Security Agencies Act&quoute; of 1998 [1]. It does not specify sanctions to punish corrupt activities.

Unverified reports online have said that Defion Internacional has a bureau in Sri Lanka [2] while others suggest Sri Lankan PMCs may have been operating in Iraq [3]. UK PMCs were apparently employed in Sri Lanka on the basis of information revealed when the UK was questioned about arms exports to Sri Lanka [4]. Control and oversight of PMCs in Sri Lanka are probably poor as in 2010 it was found a former Army commander channelled military contracts through PMCs owned by his son-in-law [5].

PMC activity lacks effective scrutiny. There are several allegations of corruption by commentators in the media against the tie-up between Rakna Arakshaka Lanka Limited (RALL), a state owned PMC, and privately owned PMC Avant-Garde Maritime. The legality of the joint venture has been heavily questioned but there appears to be no action taken in this matter [7].

There is no evidence of scrutiny of corruption allegations against PMCs. Recently, the state-owned RALL was under parliamentary scrutiny but it did not extend to the private Avant-Garde Maritime. RALL came under questioning by the Parliamentary Committee on Public Enterprises (COPE) in 2014 [7]. In 2015, RALL was questioned following a scandal involving transfer of weapons to Avant-Garde [6]. The Parliamentary Commission of Inquiry into Large Scale Corruption and Fraud has found that RALL was issued with various firearms without licenses [6]. The investigation was ongoing as of September 2015.

Assessor Sources 1- &quoute;Regulation of Private Security Agencies Act, No 4&quoute;, Parliament of Sri Lanka, 1998, http://documents.gov.lk/Acts/1998/Act%20No.%2045%20-%201998/Regulations%20Act%20No%2045E.pdf
t
2- &quoute;Defion Internacional&quoute; in &quoute;30 Most Powerful Private Security Companies in the World&quoute;, Security Degree Hub, 11 January 2014, http://www.securitydegreehub.com/30-most-powerful-private-security-companies-in-the-world/
t
3- David Blacker, &quoute;Our very own Blackwater? Sri Lankan mercenaries in Iraq&quoute;, Ground Views, 27 August 2008, http://groundviews.org/2008/08/27/our-very-own-blackwater-sri-lankan-mercenaries-in-iraq/

4- &quoute;A very British export: guns and mercenaries to fight piracy in Somalia&quoute;, Guardian, 11 July 2013, http://www.freerepublic.com/focus/news/3042041/posts

t
5- &quoute;Gen Fonseka’s son-in-law admits his company was awarded arms contracts&quoute;, Asia Tribune, 7 January 2010, http://www.asiantribune.com/news/2010/01/07/gen-fonseka%E2%80%99s-son-law-admits-his-company-was-awarded-arms-contracts

6- &quoute;’Procedure followed to provide firearms to Rakna Arakshaka Lanka illegal’, Daily News, 19 September 2015, http://www.dailynews.lk/?q=police-legal/procedure-followed-provide-firearms-rakna-arakshaka-lanka-illegal

7- &quoute;Shocking revelations of deep security state within the State&quoute;, Sundary Times, 25 January 2015, http://www.sundaytimes.lk/150125/columns/shocking-revelations-of-deep-security-state-within-the-state-131923.html

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree with Comments
Peer Reviewer4480 Comments PMC activity in-country is not subject to effective scrutiny. For example, refer the relationship between Rakna Arakshaka, a state owned PMC, and Avant-Garde Maritime, a private Sri Lankan owned PMC.

http://www.thesundayleader.lk/2012/10/14/arabian-sea-maritime-security-temporarily-at-risk/

TI Reviewer4738 Opinion Agree
Procurement 57. Does the country have legislation covering defence and security procurement and are there any items exempt from these laws?
Score 0.0
Assessor Comments Defence and security procurement remains secretive and are largely exempt from legislative oversight. The National Procurement Agency (NPA) published the National Procurement Guidelines for Goods and Works in March 2006 [1], and recommendations on long term actions included enacting a Public Procurement Law. This is issued by the Executive and not by the Legislature so the guidelines do not have the force of law, and Ministries are not required by law to observe them [2].

The NPA was suddenly abolished in 2008 [3] and its work was assigned to the Department of Public Finance under the Ministry of Finance and Planning (which is also headed by President Rajapaksa).

While the Procurement Manual of 2006 is still available publicly on the MOFP website, its implementation is doubtful, with an increase in allegations about procurement corruption [3]. In any case, the 2006 Procurement Manual is not specific to defence or security procurement but generally applies to public procurement, it is only an assumption that it applies to defence as well.

Following change of government, corruption allegations have surfaced in 2015 about defence deals conducted by the former Rajapaksa government. For example, alleged tender violations the Mi-17 helicopter overhaul contract issued to a Vietnam-based company [4]. In June, UNP Parliamentarian Buddhika Pathirana alleged corruption in a contract under the previous government for the supply of food to the army [5].

Assessor Sources 1- Procurement Guidelines, National Procurement Agency, March 2006. http://www.treasury.gov.lk/depts/pfd/publications/ProcurementGuidelines2006_amded12June.pdf

2- &quoute;Synopsis of anti-corruption and Related Laws&quoute;, USAID, August 2007, p.iv http://www.ciaboc.gov.lk/web/images/pdf/publications/Synopsis_of_Anticorruption.pdf

3- Natasha Gunaratne, &quoute;National Procurement Agency Shutdown&quoute;, Sunday Times, 4 May 2008. http://www.sundaytimes.lk/080504/FinancialTimes/ft318.html

3- &quoute;Harsha wants National Procurement Agency back&quoute;, March 2014, http://www.ft.lk/2014/03/24/harsha-wants-national-procurement-agency-back/

4- &quoute;Controversy over Helicopter deal&quoute;, Sunday Leader, 19 July 2015, http://www.thesundayleader.lk/2015/07/19/controversy-over-helicopter-deal/

5- &quoute;MP Pathirana to reveal details of corruption in soldiers’ food supply contract&quoute;, News First, 17 June 2015, http://newsfirst.lk/english/2015/06/mp-pathirana-to-reveal-details-of-corruption-in-soldiers-food-supply-contract/100403

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Procurement 58. Is the defence procurement cycle process, from assessment of needs, through contract implementation and sign-off, all the way to asset disposal, disclosed to the public?
Score 1.0
Assessor Comments The Ministry of Defence does not publish information about concluded contracts, implementation etc [1] . A large number of defence contracts appear to be single-sourced and procured through an unsolicited approach [2]. Where an open tender is issued, there are no details about contract implementation and asset disposal.

There are occasional press releases (such as 3) about contract sign-off in case of major contracts but with little detail about selection and other aspects. Also public evidence and discussions related to procurement-related matters is not available.

Assessor Sources 1- Defence News, Ministry of Defence and Urban Development, http://www.defence.lk/main_new.asp?fname=news (no information on procurement)

2- Maneksha Borhum, &quoute;Tender Corruption&quoute;, 27 April 2014, http://www.nation.lk/edition/fine/item/28440-tender-corruption.html

3- &quoute;Sri Lanka Air Force takes delivery of MA 60 aircraft&quoute;, 10 January 2013, http://www.defence.lk/new.asp?fname=20111001_03,

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Procurement 59. Are defence procurement oversight mechanisms in place and are these oversight mechanisms active and transparent?
Score 1.0
Assessor Comments There are no oversight mechanisms in place but the new government is taking some steps towards this with the implementation of a National Procurement Commission [4]. It is proposed that all public procurement must be approved by this commission. As at September 2015, the cabinet has approved the establishment of this Commission [5]. The President also stated in July 2015 that new legislation would increase the powers of the Auditor General’s office, which was, in part, aimed at improving the efficiency in tendering processes of public projects [8].

The NPA, which was the only agency that worked towards increasing transparency and oversight in Defence, was shut down in 2008 by the Rajapaksa government.

Procurement requirements are stated by the Office of Chief of Defence Staff and procurement has to be approved by a committee on defence. However, both the above representatives fall under the remit of the Ministry of Defence indicated weak enforcement. For example, corruption allegations have surfaced in 2015 following change of government about defence deals approved under the former Rajapaksa government [6,7].

Assessor Sources 1- Interview with a former Sri Lankan Army official, 09 May 2014.

2- Maneksha Borhum, &quoute;Tender Corruption&quoute;, 27 April 2014, http://www.nation.lk/edition/fine/item/28440-tender-corruption.html

3- &quoute;Harsha wants National Procurement Agency back&quoute;, March 2014, http://www.ft.lk/2014/03/24/harsha-wants-national-procurement-agency-back/

4- &quoute;A Special Commission to probe into large scale corruptions&quoute;, Government of Sri Lanka Press Release, January 2015, http://www.news.lk/news/sri-lanka/item/5851-a-special-commission-to-probe-into-large-scale-corruptions

5- &quoute;A Committee to rationalize Govt. procurement procedure&quoute;, Government of Sri Lanka Press Release, September 2015, http://www.news.lk/news/sri-lanka/item/9693-a-committee-to-rationalize-govt-procurement-procedure

6- &quoute;MP Pathirana to reveal details of corruption in soldiers’ food supply contract&quoute;, News First, 17 June 2015, http://newsfirst.lk/english/2015/06/mp-pathirana-to-reveal-details-of-corruption-in-soldiers-food-supply-contract/100403

7- &quoute;Controversy over Helicopter deal&quoute;, Sunday Leader, 19 July 2015, http://www.thesundayleader.lk/2015/07/19/controversy-over-helicopter-deal/

8 – President takes on corrupt accounting and audit practices, July 28, 2015, http://www.dailymirror.lk/81203/president-takes-on-corrupt-accounting-and-audit-practices

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Procurement 60. Are actual and potential defence purchases made public?
Score 1.0
Assessor Comments The NPA’s Procurement Guidelines replaced previous guidelines including &quoute;Guidelines on Government Tender Procedure (Revised Edition, 1997)&quoute;, &quoute;Revised Guidelines on Government Tender Procedure for Projects assisted by the Foreign Financing Agencies (Revised Edition- 2000).&quoute;[6]

According to the NPA’s Guidelines, competitive bidding procedure is applicable for most of public procurement [section 3.2.4 and 3.2]. They &quoute;should be advertised at least in one widely circulated national newspaper, NPA website and other relevant websites where possible&quoute;. There are 2 exceptions: (a) Section 3.3 &quoute;limited/restricted bidding&quoute; exempts tenders sent to pre-selected bidders when only a few sources are available; (b) Section 3.4.3 exempts procurement of small value items where advertisement may be uneconomical[6]. Section 8.10 &quoute;publication of contract award&quoute; requires prompt publication of result of tenders in government websites and/or media including particulars like price, name of contractor, total number of bids received, etc. This does not appear to be adhered to in practice (explained below).

Tenders are published on the websites of respective departments. Some are also published on the websites of the GOSL and the Department of Public Finance. Tenders are categorised by sector and published on the SAARC website. However, none of these websites seem to publish details about concluded tenders and &quoute;contracts awarded&quoute;. Most of these happen to be ongoing procurement with some departments publishing Request for Quotations (RfQ) or Request for Information (RfI). This is less so when it comes to tenders of the Defence Ministry where only a few tenders are published about ongoing procurement. For example, the Ceylon Petroleum Corporation, a state enterprise, publishes RfQs [3] but the same does not apply to the security and defence sector. This indicates that defence procurement lacks transparency with actual and potential purchases not made public.

The department of Public Finance has a section titled &quoute;Advance Procurement Notices&quoute; but this is not updated [4]. There are widespread allegations of secrecy in defence procurement and the government has not responded to these [5].

The Ministry of Defence and Urban Planning controls a broad range of activities and security agencies (like the Coast Guard, Civil Security department, Kothlewala Defence University etc). It is not clear, which of the many tenders released are for equipment intended specifically for use by the military as opposed to other agencies like the Coast Guard or Intelligence Services or the Police Force. This is specifically a problem when it comes to simple dual-use goods such as trucks or radar or communication equipment or infrastructure related services.

Procurement intended for actual military purposes are not made clear. Notices of the MoD in general appear to list actual purchases but individual services do not list them. Additionally, although the MoD seems to carry out procurement through open tenders, it is difficult to ascertain whether and how much of it includes equipment intended for use by the Armed forces. It is therefore highly likely that many defence purchases are not made public.

Assessor Sources 1- Army tender announcements, http://www.army.lk/tenders/ , accessed 7 May 2014.

2- Tenders announced on the SAARC website, SAARC, http://www.saarctenders.com/sri-lanka-tenders.htm, accessed 7 May 2014

3- Request for Quotation announcements by the Ceylon Petroleum Corporation, http://www.ceypetco.gov.lk/Tenders.htm , accessed 8 May 2014

4- &quoute;Advanced Procurement Notices&quoute;, Department of Public Finance, http://www.treasury.gov.lk/notices/advance-procurement-notices.html, accessed on 8 May 2014

5- &quoute;Harsha wants National Procurement Agency back&quoute;, March 2014, http://www.ft.lk/2014/03/24/harsha-wants-national-procurement-agency-back/

6- &quoute;Procurement Guidelines 2006&quoute; National Procurement Agency, http://www.treasury.gov.lk/depts/pfd/publications/ProcurementGuidelines2006_amded12June.pdf,

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Procurement 61. What procedures and standards are companies required to have – such as compliance programmes and business conduct programmes – in order to be able to bid for work for the Ministry of Defence or armed forces?
Score 1.0
Assessor Comments Standard bidding documents, established by then National Procurement Agency (closed in 2008), have a clause titled &quoute;Ethics, Fraud, and Corruption&quoute;. It requires that bidding companies should not have a record of &quoute;corrupt&quoute;, &quoute;fraudulent&quoute;, &quoute;collusive&quoute;, or &quoute;coercive&quoute; practices [1]. The same applies for consulting tenders [2].-

It is not clear as to how far this is imposed. The fact that procurement decisions are not transparent and military hardware have in the past been single-sourced negates the possibility of accurately assessing if Sri Lanka actually refrains from doing business with a non-compliant bidder.

Assessor Sources 1- Standard Bidding Document, section 1 clause 3, p. 3 at http://www.treasury.gov.lk/depts/pfd/publications/sbdc/Procurement_Of%20_General_Goods_NCB.pdf

2- Consulting Services Manual, Department of Public Finance, 2007, Section 1.2.1, p.4 , http://www.treasury.gov.lk/depts/pfd/publications/ConsultingServicesManualNovember2007.pdf

3- &quoute;More corruption controversy as Chinese firm behind Colombo Port City revealed to be banned by World Bank&quoute;, February 2014. http://www.therepublicsquare.com/business/2014/02/21/more-corruption-controversy-as-chinese-firm-behind-colombo-port-city-revealed-to-be-banned-by-world-bank/

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Procurement 62. Are procurement requirements derived from an open, well-audited national defence and security strategy?
Score 0.0
Assessor Comments There is no national security strategy, according to the MoD website which cited an official in June 2013, stating the government must &quoute;formulate a comprehensive National Security strategy&quoute; [1]. The new government has announced that it is formulating a new National Security Plan for Sri Lanka [3] which may indicate some progress will be made in the future in relation to the linkage of procurement requirements with national security objectives.

Until the end of the civil war the main strategy of the military was to defeat the LTTE and procurement appear to have been made (many on an urgent basis) to fill gaps towards addressing this capability [2]. However, after the end of the war in 2010, the military has yet to come up with a clear strategy that defines the military’s role, requirements, future procurement etc.

Assessor Sources 1- Sri Lanka’s National Security Concerns, Department of National Defence and Urban Planning, 13 June 2013, http://www.defence.lk/new.asp?fname=sri_lanka_national_security_concerns_20130613_08 , accessed on 7 May 2014

2- Interview with a former Sri Lankan Army official, 09 May 2014

3 – Daily FT, (2015). Comprehensive national security plan under preparation: President. [online] Available at: http://www.ft.lk/article/424941/Comprehensive-national-security-plan-under-preparation:-President [Accessed 20 Sep. 2015].

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Procurement 63. Are defence purchases based on clearly identified and quantified requirements?
Score 2.0
Assessor Comments The NPA Procurement Guidelines describes duties and responsibilities of Procurement Committees (PC) and Technical Evaluation Committes (TEC) in planning procurement and evaluating bids (4). There is no guidance for defence purchases to be made according to clearly identified needs of the Armed Forces. Defence purchases are not clearly defined and there is no information about capability gaps and procurement needs. If they are clearly identified, then there is no way of knowing as they are not regularly published.

The Office of the Chief of Defence Staff is responsible for co-ordination between the military and the MoD, which means that it would play a pivotal role in needs assessment and procurement planning. However, no data is published about this. The websites of the Army, Navy and the Air Force do not identify nor quantify requirements publicly. Upon interviewing a former military officer [3], he said that there is a formal mechanism in place where individual commanders liaise with the Chief of Defence Staff but was unaware of how a requirement was assessed. None of this is debated nor made public.

During the long-running war against the LTTE, it appears that the government has had to procure various military equipment and supplies on an urgent basis. Since the establishment of the Joint Operations Headquarters (JOH), and during the final stages of the insurgency, efforts were made to identify and quantify requirements of each service within the military [5]. Sri Lanka learnt from its past, when unstructured procurement lead to inattention to force structure imperatives, a failure to ensure standardisation and interoperability and a lack of coordination.

Assessor Sources 1- Chief of Defence Staff Act, Government of Sri Lanka, 2009, Act no.34, p.4, http://documents.gov.lk/Acts/2009/Chief%20of%20%20Defence%20Staff%20Act%20No.%2035/ActNo.35E.pdf

2- &quoute;Mystery over major Military Shake-up&quoute;, Sunday Times, 19 July 2009, http://www.sundaytimes.lk/090719/Columns/political.html (article briefly details role of the Office of Chief of Defence Staff)

3- Interview with former military officer, 06 May 2014.

4- Sections 2.5, 2.6, 2.7 of &quoute;Procurement Guidelines 2006&quoute;, National Procurement Agency, http://www.treasury.gov.lk/depts/pfd/publications/ProcurementGuidelines2006_amded12June.pdf

5- &quoute;Procurement, Sri Lanka’, Jane’s Sentinel Security Assessment: South Asia, 2012, IHS Jane’s. (subscription).

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Procurement 64. Is defence procurement generally conducted as open competition or is there a significant element of single-sourcing (that is, without competition)?
Score 2.0
Assessor Comments The NPA’s Procurement Guidelines form the basis of public procurement and it replaced all previous regulations/guidelines [4]. NPA Guidelines state that competitive bidding procedure is applicable for most of public procurement[4]. They &quoute;should be advertised at least in one widely circulated national newspaper, NPA website and other relevant websites where possible&quoute; (s,3.1 & 3.2). There are 3 exceptions: (a) Section 3.3 &quoute;limited/restricted bidding&quoute; states that advertisement is not required when tenders are sent to pre-selected bidders when only a few sources are available; (b) procurement of small value items where advertisement may be uneconomical. Detailed guidance is provided in the Procurement Manual (section 3.4); (c) Emergency procurement (s.3.8.2).

Tenders published on the websites of procuring authorities appear to indicate that they are conducted as open competition. In practice, it is possible that many happen in an unsolicited approach. There is evidence of single-sourcing in the defence procurement as indicated by equipment bought from Russia and China on bilateral terms [1].

For example, with growing economic and defence relations China provides &quoute;aid&quoute; and assistance to Sri Lanka in various developmental projects, and it is possible that Sri Lanka may be receiving defence equipment and supplies from China which may otherwise be procured in an open competition.

An article from April 2014 in the The Nation, highlighted this concern: &quoute;while many Chinese companies are now investing in mega projects in Sri Lanka, there have been many allegations of them avoiding tender procedures and hence emerging as the only bidders for contracts with talks of commissions running up to millions of US Dollars being paid to local agents to secure such projects&quoute; [2].

A possible explanation for Sri Lanka single-sourcing military hardware based on bilateral relations could be a degree of hesitance from many international companies to trade with Sri Lanka over war crimes allegations. Sri Lanka seems to be giving preference to procurement made with certain financial advantages such as credit lines from a country, as was the case with the Mi-17 procurement from Russia [3]. A USD300 million 10-year credit agreement was signed between SLK and Russia in 2010. In 2011, the Sri Lanka Air Force used it to buy 14 helicopters, and in 2012 it was considering a procurement of additional helicopters.

Assessor Sources 1- Dhinesh Dodamgoda, &quoute;Is Sri Lanka Becoming A Key Player In China’s String Of Pearls?&quoute;, Sunday Leader, 9 June 2013, http://www.thesundayleader.lk/2013/06/09/is-sri-lanka-becoming-a-key-player-in-chinas-string-of-pearls/

2- Maneksha Borhum, &quoute;Tender Corruption&quoute;, 27 April 2014, http://www.nation.lk/edition/fine/item/28440-tender-corruption.html

3- &quoute;Sri Lanka’s Air Force conducting feasibility study to purchase Mi-17 helicopters from Russia&quoute;, Colombo Page, 5 August 2012, http://www.colombopage.com/archive_12A/Aug05_1344178230CH.php

4- &quoute;Procurement Guidelines 2006&quoute;, National Procurement Agency, http://www.treasury.gov.lk/depts/pfd/publications/ProcurementGuidelines2006_amded12June.pdf

5- &quoute;Procurement Manual – 2006&quoute;, National Procurement Agency, http://www.treasury.gov.lk/depts/pfd/publications/ProcurementManual2006_20060817_with_Sup8.pdf

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree with Comments
TI Reviewer4738 Comments Defence procurement is conducted as open competition, though a significant minority of the value of contracts (say, 30%) are single-sourced, sometimes without clear justification.
Procurement 65. Are tender boards subject to regulations and codes of conduct and are their decisions subject to independent audit to ensure due process and fairness?
Score 1.0
Assessor Comments Tender Boards are comprised of Secretaries of respective Ministries and the Technical Evaluation Committees by officials of various government agencies [1] . There are Procurement Committes (PC) to handle procurement [2]. It is unclear as to how much of a role these committees play in practice.

The NPA’s Procurement Guidelines currently guides procurement in Sri Lanka; it replaced all previous guidelines tender and procurement[2]. Section 2.5 relates to &quoute;responsibilities and duties of procurement committees (PC)&quoute;. In theory, the Guidelines require (s2.13) the PCs and TECs to be reviewed by the NPA. The NPA, before it was disbanded, intended to set up Procurement Regulatory Agency to oversee the activities of the Tender Boards, but this has not yet been done[1]. Currently, there are no audits of tender boards.

Following the change of government, various news reports and investigations surfaced indicating corrupt defence procurement practices during the previous Rajapaksa government [e.g 4]. This is indicative of breaches of NPA Guidelines including section 2.5, and lack of oversight. In 2014, the opposition called for the reactivation of the NPA alleging that there is an increase in the number of unsolicited proposals and other corrupt practices within the procurement process.[4]

The President stated in July 2015 that new legislation would increase the powers of the Auditor General’s office, which was, in part, aimed at improving the efficiency in tendering processes of public projects [5].

Assessor Sources 1- &quoute;National Procurement Agency Shutdown&quoute;, Sunday times, May 2008, http://www.sundaytimes.lk/080504/FinancialTimes/ft318.html

2- &quoute;Procurement Guidelines 2006&quoute;, National Procurement Agency, http://www.treasury.gov.lk/depts/pfd/publications/ProcurementGuidelines2006_amded12June.pdf

3-&quoute;Controversy over Helicopter deal&quoute;, Sunday Leader, 19 July 2015, http://www.thesundayleader.lk/2015/07/19/controversy-over-helicopter-deal/

4-&quoute;Harsha wants National Procurement Agency back&quoute;, March 2014, http://www.ft.lk/2014/03/24/harsha-wants-national-procurement-agency-back/

5 – President takes on corrupt accounting and audit practices, July 28, 2015, http://www.dailymirror.lk/81203/president-takes-on-corrupt-accounting-and-audit-practices

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree with Comments
TI Reviewer4738 Comments Tender boards are understood to be subject to regulations and codes of conduct, though these are not publicly available. Audits of tender board decisions are not routinely undertaken.
Procurement 66. Does the country have legislation in place to discourage and punish collusion between bidders for defence and security contracts?
Score 0.0
Assessor Comments There is no national legislation outlawing collusion. Sri Lanka’s public procurement process is governed by two guidelines issued by the Treasury to supplement Financial Regulations. There is an absence of a proper legal framework. The guidelines are the Procurement Manual and Procurement Guidelines 2006 that are intended to govern procurement programmes.

The National Procurement Agency published the Procurement Manual in 2006 which warned of the risks of bidder collusion and price fixing mainly emanating from conducting a ‘pre-qualification’ (pre-solicitation) round before announcing a procurement tender. It took steps to ensure this does not happen and the pre-qualification occurs in a smooth way [1] but was abolished in 2008 [3].

Pre-qualification in Sri Lanka is generally required for large and complex works, turnkey plants, private sector infrastructure projects, some special goods and complex information technology systems. But there seems to be a high level of secrecy in these projects now with many not even going through an open tender process [2].

Another problem in assessing this is the lack of public information available on procurement programmes and competition in regard to procurement activity.

Response to TI Chapter Reviewer: No such legislation was found, although there is some guidance in relation to this under the Procurement Manual and Guidelines mentioned above.

Assessor Sources 1- Procurement Manual, National Procurement Agency, March 2006, Section 3.12, p.61 . http://www.treasury.gov.lk/depts/pfd/publications/ProcurementManual2006_20060817_with_Sup8.pdf

2- Maneksha Borhum, &quoute;Tender Corruption&quoute;, 27 April 2014, http://www.nation.lk/edition/fine/item/28440-tender-corruption.html

3- &quoute;Harsha wants National Procurement Agency back&quoute;, March 2014, http://www.ft.lk/2014/03/24/harsha-wants-national-procurement-agency-back/

4- &quoute;Public Procurement Law: Can new laws be enacted to establish level playing field for bidders?&quoute;, Sri Lanka Financial Times, 30 July 2014, http://www.ft.lk/2014/07/30/public-procurement-law-can-new-laws-be-enacted-to-establish-level-playing-field-for-bidders/

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree with Comments
TI Reviewer4738 Comments There are national laws outlawing collusion, but no legislation specific to defence. Enforcement of measures to punish colluding companies is likely to be only weakly enforced.
Procurement 67. Are procurement staff, in particular project and contract managers, specifically trained and empowered to ensure that defence contractors meet their obligations on reporting and delivery?
Score 1.0
Assessor Comments The &quoute;Finance Regulation and Procurement Procedure&quoute; is part of the syllabus for Bar Examinations and Promotion Examinations for Civil Servants from August 2011 [1].

The Sri Lanka Foundation (SLF), which is an autonomous education body under the purview of the President has announced national level training programs and consultancy on procurement and audit management. The programme aims to create procurement experts and procurement specialists particularly to cater to different projects from bidding, pre-contract to ensuring contract implementation.

It is however not clear if in practice, officials specifically from the Defence Ministry are well-trained and whether they function independently from military guidance.

Through the course of 2015, various corruption allegations surfaced relating to contracts issued in the previous Rajapaksa government. Examples include irregularities in the bid for helicopter maintenance [3], and sale of weapons by state-owned PMCs[4]. These are suggestive of weak training among procurement staff and/or interference from senior level officials compromising procurement staff’s ability to perform their duties.

Assessor Sources 1- The Minute of Programme Officers’ Service, Ministry of Public Administration and Home Affairs, p.11A, http://www.pubad.gov.lk/web/images/stories/dos/sm/sm(e).pdf

2- &quoute;SLF launches national level training programs on procurement and audit management&quoute;, 30 January 2014, Daily FT, http://www.ft.lk/2014/01/30/slf-launches-national-level-training-programs-on-procurement-and-audit-management/

3- &quoute;Controversy over Helicopter deal&quoute;, Sunday Leader, 19 July 2015, http://www.thesundayleader.lk/2015/07/19/controversy-over-helicopter-deal/

4- &quoute;Shocking revelations of deep security state within the State&quoute;, Sundary Times, 25 January 2015, http://www.sundaytimes.lk/150125/columns/shocking-revelations-of-deep-security-state-within-the-state-131923.html

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree with Comments
TI Reviewer4738 Comments Defence procurement staff are not organised into a professional staff department. There are likely to be significant staff shortages. There is little control or oversight of defence contractors by procurement staff, and there is likely to be evidence of undue influence from higher grades within the organisation.
Procurement 68. Are there mechanisms in place to allow companies to complain about perceived malpractice in procurement, and are companies protected from discrimination when they use these mechanisms?
Score 1.0
Assessor Comments Companies can address issues and complaints relating to public procurement with the representing officials from the Ministry, or approach the Commission to Investigate Allegations of Bribery or Corruption (as reported in the article above). However it is not clear if complaints related to defence procurement are treated in the same way that other complaints relating to public procurement may be. The lack of transparency in defence procurement mean that it may be difficult to report cases with clear information. In theory, companies can complain to the CIABOC, but there are no examples or reported cases of this having happened in the defence sector.

In the absence of data directly relevant to the defence sector, the example of the transport minister case has been used as an indicator to demonstrate the role of the CIABOC in handling complaints.

The interviewee commented that companies may not want to complain to the commission out of fear of being banned from future tenders or it working to the company’s disadvantage in the future competition. Given the sensitivity associated with the defence sector, this is likely to be more pronounced when it comes to defence procurement.

Assessor Sources 1- Interview with former military officer, 06 May 2014.

2- &quoute;LPBOA accuses private transport minister of wrong doing&quoute;, The Island, 12 March 2012, http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=47302

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Procurement 69. What sanctions are used to punish the corrupt activities of a supplier?
Score 0.0
Assessor Comments No public information is available about sanctions relating to public procurement. Lack of available information about defence procurement processes makes it hard to find out about any cases of corruption.

Before the National Procurement Agency was shut down in 2008, it was responsible for blacklisting companies that have engaged in fraudulent activities. However, it is not clear if the government now maintains any such barred suppliers’ list.

In fact, it seems that the government may not be placing importance on the corruption history of suppliers, as is evident from the multi-billion dollar sea reclamation deal awarded to a Chinese company which in turn had been blacklisted by the World Bank for corruption. The World Bank in 2011 said it had debarred China’s Communications Construction Company (CCCC) and its subsidiaries from participating in its projects until 2017 following a corruption probe on a road project in the Philippines. However, the Sri Lankan government entered into an agreement with the Chinese company on 16 September 2014 [2] for the Port City project.

In March 2015, the new government directed CCCC to suspend ongoing work with immediate effect [2] due to corruption allegations in the contract signed by Former President Rajapaksa. In September 2015, media reported that the government was looking into resuming the contract with CCCC [3].

Assessor Sources 1- &quoute;More corruption controversy as Chinese firm behind Colombo Port City revealed to be banned by World Bank&quoute;, February 2014. http://www.therepublicsquare.com/business/2014/02/21/more-corruption-controversy-as-chinese-firm-behind-colombo-port-city-revealed-to-be-banned-by-world-bank/
2-&quoute;Colombo Port City project: China Communications Construction Company Ltd states&quoute;, 9 March 2015, Daily News, http://www.dailynews.lk/?q=local/colombo-port-city-project-china-communications-construction-company-ltd-states
4- &quoute;Lanka sees China-funded port city project as part of megapolis development&quoute;, Lanka Puvath, September 2015, http://www.lankapuvath.lk/index.php/item/480-lanka-sees-china-funded-port-city-project-as-part-of-megapolis-development
Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Procurement 70. When negotiating offset contracts, does the government specifically address corruption risk by imposing due diligence requirements on contractors? Does the government follow up on offset contract performance and perform audits to check performance and integrity?
Score 0.0
Assessor Comments A survey of the procurement guidelines reveals no information about offset contracts. Therefore, there is no evidence of the government imposing reporting/audit requirements on offset contracts.

In an open source news search for previous military procurement, there are no mentions of any offset contracts. It is likely that Sri Lanka is not transparent in this matter – procurement of major platforms may have presumably involved offset terms that have gone unreported. Offsets are likely to exist given that Sri Lanka appears to procure equipment as part of MOUs with foreign governments. Recent news reports about MOUs also cover technology transfer. A 2013 article points towards some tech transfer projects with India and Japan (in the automobile sector) [2]. Another article refers to an MoU with india over provision of radar with tech transfer to benefit Sri Lanka [3].

Assessor Sources 1- Island, &quoute;Sri Lanka, Vietnam to enhance bilateral agenda&quoute; November 25, 2013, http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=92803

2- The Sunday Times, &quoute;Re-examining Colombo-Beijing ties&quoute;, September 8 2013, http://www.sundaytimes.lk/130908/business-times/re-examining-colombo-beijing-ties-60587.html

3- The Sunday Leader, &quoute;Govt. is guilty of serious negligence&quoute; 2007, http://www.thesundayleader.lk/archive/20070422/interviews.htm

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Procurement 71. Does the government make public the details of offset programmes, contracts, and performance?
Score 0.0
Assessor Comments There is no publicly available information about offset programmes nor a policy related to offsets. This is the case with all public sector procurement and not just defence.
Assessor Sources A search for publicly available information yielded no results.
Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Procurement 72. Are offset contracts subject to the same level of competition regulation as the main contract?
Score 0.0
Assessor Comments There is no publicly available information about offset programmes nor a clause/policy related to offsets. This seems to be the case with all public sector procurement.
Assessor Sources A search for publicly available information yielded no results.
Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Procurement 73. How strongly does the government control the company’s use of agents and intermediaries in the procurement cycle?
Score 2.0
Assessor Comments Sri Lanka’s Public Contract Act No. 3 of 1987 [4] applies to all contracts that exceed five million rupees [3]. Provision 8 lists requirements under the Public Contracts Act that makes it mandatory for agents or sub-agents, representatives or nominees for and on behalf of any tenderer to register in the Registrar of Companies. It also prohibits individuals from having any dealing with agents except for the purposes of registration.

Other than this, the National Procurement Manual requires bidders to state clearly in its Invitation to Bid (ITB) documents is agents are required. Furthermore, &quoute;a distinction should be made between the qualification of the bidder and those of the manufacturer if the bid is submitted by a party such as an importer, a trader, an agent, who will act as the supplier and sign the contract&quoute;.

No further information is publicly available about implementation of contracts making it difficult to assess the extent to which agents are controlled in practice. Defence procurement lacks transparency and it is not possible to make an assessment as to how strictly these rules, laws are enforced.

Assessor Sources 1- Standard Bidding Document, Procurement of General Goods- National Competitive Bidding, section 1, p.55, http://www.treasury.gov.lk/depts/pfd/publications/sbdc/Procurement_Of%20_General_Goods_NCB.pdf ,p.4
2- &quoute;Procurement Manual&quoute;, National Procurement Guidelines, Democratic Socialist Republic of Sri Lanka, page 132, http://www.treasury.gov.lk/FPPFM/pfd/publications/ProcurementManual2006_20060817_with_Sup8.pdf
3- Supplement 13 to the Procurement Manual, http://www.treasury.gov.lk/depts/pfd/publications/ProcuManSupple13.pdf
4- Public Contracts Act of 1987, Sri Lanka, http://www.srilankalaw.lk/Volume-VI/public-contracts-act.html
Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Procurement 74. Are the principal aspects of the financing package surrounding major arms deals, (such as payment timelines, interest rates, commercial loans or export credit agreements) made publicly available prior to the signing of contracts?
Score 1.0
Assessor Comments A search for news articles and information on government portals yielded no information about specifics related to &quoute;major&quoute; arms deals. Some procurement tenders announced on the Ministry’s website pertaining to small supplies and services do mention estimated cost.

A tender for the supply of vehicles for the Army for the year 2013, did not include financial details. Admittedly, the buyer would choose the most economical bid but even an estimated budget was not disclosed. This same is noted for the 2014 vehicle procurement tender as well. Sources of funding were also not disclosed.

There have not been many large procurement contract awards since the end of the war in 2010. There have been cases of bilateral agreements and donations. During the war, many major weapon platforms were procured on an urgent requirement basis without sufficient details being provided.

Assessor Sources 1- &quoute;SLAF To Purchase More Choppers&quoute;, 5 August 2012, http://www.thesundayleader.lk/2012/08/05/slaf-to-purchase-more-choppers/

2- &quoute;Bay Class patrol boat from Australia arrives&quoute;, News First, 24 April 2014, http://newsfirst.lk/english/2014/04/bay-class-patrol-boat-aussie-arrives-colombo-harbour/32038

3- &quoute;Call for Tenders for the Supply of vehicles/equipment for the Army on payment basis for special purpose – 2013&quoute;, Sri Lankan Army, http://220.247.214.182/tenders/images/call_veh_english.pdf , accessed on 7 May 2014

4- &quoute;Call for Tenders for the Supply of vehicles/equipment for the Army on payment basis for special purpose – 2014&quoute;, to be viewed from http://www.army.lk/tenders/

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Procurement 75. Does the government formally require that the main contractor ensures subsidiaries and sub-contractors adopt anti-corruption programmes, and is there evidence that this is enforced?
Score 1.0
Assessor Comments Provision 3 in the Standard Bidding Document lists rules related to &quoute;Ethics, Fraud, and Corruption&quoute;; subcontractors are required to comply to Provision 3 (as per clause 20.1 that covers subcontracting).
Clause 20.1 of the Standard Bidding document requires that all subcontractors comply with the provisions in clause 3 related to &quoute;Ethics Fraud and Corruption&quoute;. This is broadly defined and there is no mention of requirement for the adoption of anti-corruption programmes.

Clause 3 requires &quoute;the bidders, suppliers, contractors, and consultants to observe the highest standard of ethics during the procurement and execution of such contracts&quoute;. This requirement is not re-iterated in tender documents, or calls for &quoute;expression of interest&quoute;.

The Standard Bidding document is supposed to be a template for all public procurement. It is not clear if procurement officials strictly enforce clause 3. The general lack of transparency in defence makes this difficult to assess; no further public sources are available.

The Rajapaksa government’s drive to attract private investment from China [3,4], a country known to uphold sovereignty and non-intervention above human rights in its conduct with other states raises doubts concerning whether formal requirements that contractors, subsidiaries, and sub-contractors adopt anti-corruption programs are enforced.

Assessor Sources 1- Standard Bidding Document, Procurement of General Goods- National Competitive Bidding, section 1, p.3 http://www.treasury.gov.lk/depts/pfd/publications/sbdc/Procurement_Of%20_General_Goods_NCB.pdf

2- &quoute;General Instructions for Registration of Suppliers/Contractors for the Year 2014&quoute;, Ministry of Defence and Urban Development, http://tender.navy.lk/assets/files/registration_suppliers/2014/terms_and_condition_eng_20140818.pdf , accessed on 6 May 2014

3- Höglund, K., and, C. Orjuela, (January-March 2012). ‘Hybrid Peace Governance and Illiberal Peacebuilding in Sri Lanka,’ Global Governance: A Review of Multilateralism and International Organizations 18(1):89-104.

4- Lund, R., (2010). ‘Editorial,’ In The Tsunami of 2004 in Sri Lanka: Impacts and Policy in the Shadow of Civil War, edited by P. M. Blaikie and R. Lund, Abingdon: Routledge.

Peer Reviewer4037 Opinion Agree with Comments
Peer Reviewer4037 Comments The Rajapaksa government’s drive to attract private investment from China raises doubts concerning whether formal requirements that contractors, subsidiaries, and sub-contractors adopt anti-corruption programs are enforced. Extensive commercial loans and investment from China, for example, are being put toward developing major ports such as in Hambantota and Colombo, highways, and a coal power plant, which has resulted in China being granted an exclusive economic zone in an effort to attract further Chinese investment. Further concerns pertain to the fact that in downplaying human security in favour of national security and painting the Sri Lankan conflict as solely a ‘terrorist’ problem, the Chinese investment strategy has enabled the displacement of Tamils to be exploited by not resettling them to the areas from which they were displaced, freeing up land for large-scale tourism and commercial development. This has further enabled the government to focus its nation-building project on economic development, attracting Chinese investment in tourism and infrastructure, rather than on the need for a political solution to the conflict.

Sources:

Höglund, K., and, C. Orjuela, (January-March 2012). ‘Hybrid Peace Governance and Illiberal Peacebuilding in Sri Lanka,’ Global Governance: A Review of Multilateralism and tInternational Organizations 18(1):89-104.

Lund, R., (2010). ‘Editorial,’ In The Tsunami of 2004 in Sri Lanka: Impacts and Policy in the Shadow of Civil War, edited by P. M. Blaikie and R. Lund, Abingdon: Routledge.

Uyangoda, J., (6 July 2012). ‘A victor’s peace,’ Himal Southasian. 7 Accessed July 2012. http://www.himalmag.com/component/content/article/5075-.html.

Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree
Procurement 76. How common is it for defence acquisition decisions to be based on political influence by selling nations?
Score 2.0
Assessor Comments A basic look at Sri Lanka’s inventory indicates that defence procurement appear to be made out of political influence as most purchases are made from Russia, and China.

However there may be few genuine reasons which could explain this:

1- Most western nations are reluctant to supply the Sri Lankan military with equipment owing to war crimes allegations. The US has been averse to supplying anything but non-lethal equipment, including boots, helmets, radios, flak jackets, and night vision goggles for the army, and surveillance and interdiction devices for the navy [1]. Similar policies from other Western nations may limit sources for Sri Lanka.
2- Attractive pricing from Russia and China may have made it an economically viable option.
3- Sri Lanka may have continued to source equipment from the same country in order to maintain inter-operability of equipment [2].

There are reports about how Sri Lanka has been buying equipment and supplies from China to foster closer political ties (which is also a perceived in South Asia as a move against India). China has been involved in major development, infrastructure and maritime projects. The new government in Sri Lanka that came into power in January 2015, has committed to investigate deals concluded with China during the previous Rajapaksa government due to possible corrupt processes. Sirisena’s government claims that many deals signed during the former president’s rule, like the Port City project, did not go through the proper approval process [5]. According to a news report by CNN, &quoute;Rajapaksa had worked to develop close ties with Beijing, often at the expense of relations with New Delhi and the West. During his administration, Chinese firms won lucrative contracts to build roads, bridges and other large projects.&quoute; [5]

Assessor Sources 1- Defence Procurement, IHS Jane’s Sentinel Country Assessment – Sri Lanka, December 2010, http://www.ihs.com/products/janes/security/country-risk/assessments.aspx (by subscription only).

2- Interview with former military officer, 06 May 2014.

3- Dhinesh Dodamgoda, &quoute;Is Sri Lanka Becoming A Key Player In China’s String Of Pearls?&quoute;, Sunday Leader, 9 June 2013, http://www.thesundayleader.lk/2013/06/09/is-sri-lanka-becoming-a-key-player-in-chinas-string-of-pearls/

4- &quoute;China is a true friend of Sri Lanka; says Defence secretary&quoute;, Hiru News, 25 November 2013, http://www.hirunews.lk/72104/china-true-friend-sri-lanka-says-defence-secretary

5- &quoute;Did China profit from corrupt Sri Lanka deals?&quoute;, CNN Money, 2 April 2015, http://money.cnn.com/2015/04/02/news/sri-lanka-china-corruption/

Peer Reviewer4037 Opinion Agree
Peer Reviewer4480 Opinion Agree
TI Reviewer4738 Opinion Agree

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