Sri Lanka, Oct. 11 -- Sri Lanka is slowly emerging out of its worst economic crisis. As part of the initiatives to stabilise the economy, the government has commenced many programs to combat corruption and the black economy as part of the IMF program. However, some developments in the economy suggest a possible increase in black economy activities and corruption.

In 2025, Sri Lanka improved its score in Transparency International's Corruption Perception Index. The 2025 score of 35 is a marginal improvement after reaching the worst-ever score of 32 in 2024. Nevertheless, recent developments place Sri Lanka at risk of a lower score for 2026.

Historically high cash circulation

A sharp increase in cash circulation is considered a warning ...