ECONOMYNEXT – Transparency International Sri Lanka (TISL), a local body fighting against corruption, has filed a fundamental rights petition in the Supreme Court, challenging the proposed National Audit (Amendment) Bill, which seeks to revise key provisions of the 1028 law.
The Bill, published in the government gazette on June 23, is being contested, citing that it undermines the independence and effectiveness of Sri Lanka’s public audit framework.
The National Audit Act, enacted in 2018, empowers the Auditor-General to investigate financial mismanagement across public institutions and hold officials accountable through the imposition of surcharges.
These surcharges serve as penalties for losses caused by fraud, negligence, misappropriation, or corruption, aiming to ensure public sector accountability.
“In the proposed amendment, there are several provisions that weaken this framework and risk undermining the independence, authority, and effectiveness of the public auditing process,” the TISL said in a statement.
TISL’s petition, filed in the public interest, warns that the proposed amendments will dilute this accountability mechanism. Among the most contentious changes is the removal of “negligence” as a basis for surcharges.
According to TISL, this significantly lowers the standard of responsibility for public officials and could protect them from liability even in cases of carelessness that result in state losses. The organisation argues this shift contradicts constitutional principles, including the public trust doctrine.
The Bill also proposes the establishment of a “Surcharge Review Committee” appointed by the President to make final decisions on the Auditor-General’s surcharge recommendations.
TISL contends that the absence of safeguards to ensure transparency and fairness in this new body raises serious concerns over potential political interference and a weakening of the Auditor-General’s powers.
The TISL also highlights the lack of enforceable timelines or penalties for failing to refer audit findings related to fraud or corruption to law enforcement authorities as another major concern.
While the proposed amendments require the Auditor-General to notify relevant officials if there is reasonable suspicion of wrongdoing, TISL points out that the process lacks defined deadlines and could lead to arbitrary delays or political manipulation.
TISL stresses that the amendments conflict with Sri Lanka’s own National Anti-Corruption Action Plan (2025–2029), the Governance Action Plan, and commitments under the IMF Governance Diagnostic.
Rather than reinforcing institutional oversight, the Bill risks weakening key accountability mechanisms at a time when public trust in governance remains fragile, it said.
The petition urges the Supreme Court to rule that the proposed amendments violate constitutional provisions related to public sovereignty, equal protection under the law, and the proper exercise of state power. (Colombo/July 24/2025)
