Dr Sarath Obeysekera

Sri Lanka is currently engaged in a vigorous campaign against corruption in the public sector. Investigations, prosecutions, and public debate have rightly focused on the misuse of state resources and abuse of political power. However, an equally important question remains largely unaddressed: what about corruption and governance failures in the corporate sector?

Some of the largest financial disasters in Sri Lanka’s history were not caused by government institutions. They occurred within private corporations, finance companies, and conglomerates that were entrusted with billions of rupees belonging to shareholders, depositors, lenders, employees, and the public.

The collapse of companies such as MTD Walkers, Golden Key Credit Card Company, The Finance Company, Touchwood Investments, and several entities within the Ceylinco Group left behind a trail of shattered dreams, lost savings, unpaid creditors, and unemployed workers. While every corporate failure has its own unique circumstances, many shared common warning signs: excessive debt, weak governance, conflicts of interest, questionable transactions, and inadequate oversight.

When a government institution fails, public scrutiny is immediate and relentless. Yet when a major private corporation collapses, the discussion often centres on market conditions rather than the conduct of those who controlled the company. This imbalance raises serious concerns about accountability.

Corporate executives are entrusted with fiduciary responsibilities. They manage assets that belong not to them personally, but to shareholders, creditors, pension funds, and the wider public. When companies fail due to reckless decision-making or misconduct, the consequences can be devastating. Small investors lose their life savings. Suppliers are driven into bankruptcy. Employees lose jobs and retirement benefits. Banks are left with bad debts that ultimately affect the entire economy.

Therefore, Sri Lanka’s anti-corruption drive should not stop at the doors of government ministries and state institutions. It must also examine the governance practices of large corporations. Regulatory authorities should have the resources and independence necessary to investigate suspicious transactions, undisclosed related-party dealings, asset transfers, and any evidence of misconduct by senior management.

The objective is not to punish legitimate business failure. Entrepreneurship involves risk, and not every unsuccessful venture is the result of wrongdoing. However, where evidence suggests fraud, deception, misuse of company assets, or deliberate misrepresentation, there should be rigorous investigation and, where appropriate, prosecution.

History shows that great civilizations and economies have often been weakened not only by external threats but also by internal failures of integrity. From the empires of Alexander the Great and Emperor Ashoka to modern global corporations, sustainable prosperity depends on accountability, transparency, and ethical leadership.

Sri Lanka cannot build a resilient economy by focusing solely on state corruption while ignoring corporate misconduct. True economic reform requires a comprehensive commitment to integrity in both the public and private sectors.

The nation deserves a system where no individual—whether politician, public servant, or corporate executive—is above scrutiny. Only then can public trust be restored and long-term economic growth secured.

Regards

Dr Sarath Obeysekera