By Dr. Sarath Obeysekera

Sri Lanka is no stranger to financial scandals. But what is truly alarming is not the scandals themselves—it is the complete absence of accountability at the highest level.

From the infamous Central Bank bond scandal to the quiet collapse of finance companies and the near-fatal instability of licensed institutions, one question refuses to go away:

Who regulates the regulator?

The Central Bank of Sri Lanka sits at the apex of financial authority in this country. It is the guardian of monetary stability, the watchdog of banks, and the supposed early warning system against financial disaster. Yet, time and again, crises erupt under its watch—only to be followed by silence, deflection, and selective accountability.

When finance companies collapsed, thousands of ordinary Sri Lankans lost their life savings. The powerful walked away. Some fled the country. Others quietly disappeared into the shadows of legal complexity.

When irregularities surfaced in the banking system, they were not discovered early—they were exposed late, often when the damage was already irreversible.

This is not mere oversight. This is systemic negligence—or worse, systemic complicity.

We are told that digitization” will solve these problems. That technology will bring transparency. That modern systems will detect irregularities in real time.

But let us ask a brutally honest question:

What is the use of digital systems if those in charge choose not to act?

A corrupt system does not become clean because it is computerized. It becomes faster, more sophisticated, and harder to detect.

Meanwhile, whispers grow louder about unregulated financial flows, including exposure to cryptocurrency channels that operate beyond the traditional regulatory net. Are these being monitored? Or are we once again waiting for a crisis before reacting?

Sri Lanka cannot afford another financial disaster.

There is a dangerous culture in this country:
Punish the small man. Protect the powerful. Move on.

This must end.

In some parts of the world, including places like Russia, there is a ruthless—if controversial—approach: when corruption is uncovered, the entire chain of command is investigated without fear or favour. While such extreme measures may not suit a democratic society, the underlying principle is worth noting:

Accountability must travel upward—not downward.

If a financial institution fails, it is not just the clerk or the manager who should answer.
It is the board.
It is the regulators.
And ultimately—it is the Central Bank.

Sri Lanka needs:

• Independent forensic audits of all major financial failures
• Public disclosure of findings—not buried reports
• Personal liability for decision-makers who fail in their duty
• A Central Bank that is not only independent—but also answerable

Sacking a few officials is not reform.
Replacing one chairman with another is not transformation.

What we need is a complete reset of accountability.

If the Central Bank cannot prevent financial misconduct, cannot detect risk in time, and cannot act decisively—then it must answer to the people of this country.

Not with statements.
Not with committees.
But with consequences.

Because if the guardian itself is compromised,
then the entire financial system stands exposed.

And the next collapse will not be a surprise—
it will be a certainty.