The Global Corruption Report 2009, published by Transparency International, placed Sri Lanka 97th out of 180 countries with the private sector being a major contributor to corruption while the government engages in corrupt practices in the guise of defence.

"Corruption takes place at several levels; between the private sector to private sector, private sector to public sector, private sector to citizens and public sector to citizens. This year’s report suggests there is a higher level of corruption involving the private sector," he said at the launch of the 2009 Global Corruption Report.

TISL, together with seven civil society organisations, such as the Ceylon Chamber of Commerce, National Chamber of Commerce, Federation of Chambers of Commerce of Sri Lanka and the Institute of Chartered Accountants, has formulated an anti-corruption coalition action framework to establish private sector transparency and good governance.

"Privatization involving the sale, lease or other divestiture of State or public property without transparency and adaptation of acceptable tender processes, open bidding and professional evaluations, were mainly identified in the country."

"Selection of project partners and tender procedures are not going through the proper selection criteria, nor are they transparent.

Projects and procurement of goods and services are being done in secret and outside acceptable tender procedures by classifying such projects and supplies as being of a sensitive, confidential or national security related nature. These are being heavily practiced in the country.

Favoured partners are extended various tax concessions on a discretionary basis or on selectively targeted basis.

Revenue collection agencies and State institutions grant debt write-offs, special restructure facilities, waive penalties on a discretionary or selectively targeted basis," he said.

(THE ISLAND)