Abstract:
Bond corruption is the biggest registered corrupt action in Sri Lanka’s political history. Bond
corruption directly connected to Central Bank of Sri Lanka. The Central Bank of Sri Lanka is the
monetary authority of Sri Lanka which is promoting the responsibility of securing price and financial
system stability. A consensus has now been reached that corruption is universal. Sri Lanka is also
worried about this problem. It undermines democracy and the rule of law, leads to violations of human
rights, erodes the quality of life and allows organized crime, terrorism and other threats of human
security to flourish (UNDP, 2008). The main objective of this study is to investigate into the social
aspects of bond corruption. Secondary data used to complete this study and data were gathered from
relevant books, newspapers, Government reports and online sources. The content analysis techniques
was applied for data analysis. Bond corruption occurred between 2015 January to 2016 August. Sri
Lankan Government lost 11,145 Million Sri Lankan rupees which led National Financial Institutions
such as Mahapola Students’ Scholarship Fund, National Servings Bank, Employees Provident Fund to
be affected. It was found that this impacted on people’s saving abilities. This problem made the political
instability as well. It created various direct and indirect social, political, economic implications for the
country. Investigation reports of the Parliament Committee on Public Enterprises (COPE) and
Presidential Commissions were handed over to the Attorney General’s Department and investigations
are in progress. Government has to make progress move in the fight against corruption in Sri Lanka.
Reform of public administration and financial management, and promote transparency and access to
information, creating awareness among people against corruptions are crucial in combating corruption.
Active engagement of public and civil society is essential in order to curb corruption in public sector
of Sri Lanka.
