Open the Books: Why Sri Lanka’s Procurement System Must Go Fully Public
By Our Economic Affairs Correspondent
The credibility of the National People's Power (NPP) government now rests not on rhetoric, but on systems. Nowhere is this more urgent than in state procurement—a domain long associated with opacity, inflated contracts, and political patronage.
Recent controversy surrounding coal procurement under the Ministry of Power and Energy Sri Lanka has exposed a structural weakness: decisions involving billions of rupees remain largely inaccessible to the very taxpayers who fund them. With scrutiny emerging from the Auditor General's Department Sri Lanka over price discrepancies, the episode has become a stress test for the government’s anti-corruption credentials.
The Case for Radical Transparency
At present, Sri Lanka’s procurement processes are only partially visible—tender notices may be published, but the full lifecycle of a contract often disappears into bureaucratic opacity. Who bid? At what price? Who won, and why? What due diligence was conducted?
These are not peripheral questions. They are the foundation of public trust.
A modern procurement regime—fit for a reformist administration—must go beyond compliance and embrace radical transparency. This means a unified, publicly accessible digital portal where every stage of procurement is visible in real time:
- Tender announcements
- List of bidders
- Bid values and technical scores
- Evaluation reports
- Final contract awards
- Contract variations and payments
Such a system would allow citizens, journalists, and civil society to scrutinise state spending without obstruction.
From Suspicion to Verification
The absence of transparency creates fertile ground for suspicion. Consider the recurring concerns: shell companies with minimal track records securing large contracts; firms linked—directly or indirectly—to politically exposed persons; entities registered at improbable addresses yet handling vast financial flows.
Public access changes the equation. It allows independent verification.
If procurement data were open, analysts could cross-reference suppliers with corporate registries, examine directorships, and identify conflicts of interest. Questions such as whether a supplier is linked to conglomerates like Hayleys PLC or John Keells Holdings—or to lesser-known proxy entities—could be examined transparently, not speculated upon in the dark.
In such an environment, irregularities would not require whistleblowers; they would surface organically.
A Deterrent Effect
Transparency is not merely about detection—it is about deterrence.
When procurement data is open:
- Officials know their decisions are subject to real-time scrutiny.
- Companies understand that ownership structures and pricing will be examined.
- Collusive practices become significantly harder to conceal.
In economic governance, visibility alters behaviour. The risk of exposure becomes a constraint on misconduct.
Lessons from Digital Governance
Globally, open contracting platforms—from Eastern Europe to parts of Asia—have demonstrated measurable reductions in procurement-related corruption. These systems integrate procurement data with company registries, tax records, and beneficial ownership databases.
Sri Lanka does not need to reinvent the wheel. It needs political will.
The Political Imperative
The NPP government’s electoral mandate was built on a promise: to dismantle entrenched corruption and restore integrity to public finance. Procurement reform is the most immediate and visible way to honour that promise.
Failure to act decisively risks a credibility gap. Each controversy—such as the coal procurement dispute—erodes public confidence not only in individual ministries, but in the reform agenda as a whole.
Conversely, opening procurement to public access offers a strategic advantage. It allows the government to say, with evidence: there is nothing to hide.
Beyond Ministries: A Whole-of-State Approach
Transparency must not be confined to central ministries. It should extend across all state-linked entities:
- National carriers
- Transport boards
- Port authorities
- Energy utilities
- Health and education sectors
Whether it is procurement by airlines, railways, or the Ceylon Petroleum Corporation, the principle must be uniform: public money, public visibility.
Public Participation as Oversight
A transparent system transforms citizens from passive observers into active participants. Journalists can investigate. Civil society can analyse patterns. Competing firms can challenge irregular awards.
This is not interference—it is distributed oversight.
As one senior NPP figure recently noted in public remarks, enabling citizen access to procurement data could significantly strengthen public confidence in government. The logic is straightforward: when people can see, they are more likely to trust.
Reform or Relapse
Sri Lanka stands at a familiar crossroads. It can continue with a procurement system that invites suspicion and periodic scandal—or it can institutionalise transparency and make corruption structurally difficult.
For the NPP government, the choice is not merely administrative; it is existential. Open procurement is no longer a reform option. It is a governance necessity.
In an era where trust is the scarcest political currency, visibility may well be the only path to legitimacy.