Colombo official quits over graft

He was in charge of luring foreign investment

By Frances Harrison in Colombo

The official in charge of promoting foreign investment in Sri Lanka has resigned over allegations of corruption.

Thilan Wijesinghe, the chairman of the Board of Investment, is due to appear in court in connection with allegations that he demanded a million dollar bribe in 1999.

Mr Wijesinghe: 'Stepped down to clear his name'

Many Sri Lankans believe corruption is rampant in the bureaucracy but this is the first top official in recent years to step down over such allegations.

Mr Wijesinghe, whose job it was to lure crucial foreign investment into Sri Lanka, is accused of doing the exact opposite, demanding money to approve a project.

The country's bribery commission has initiated proceedings against Mr Wijesinghe for allegedly soliciting a kickback for the approval of a flour mill project.

It is alleged Mr Wijesinghe accepted an advance payment of $23,000.

Denial

Anti-corruption officials investigating the Board of Investment chief have complained that he is being uncooperative.

But Mr Wijesinghe denies the allegations and says he has only stepped down to clear his name and avoid embarrassing the Board of Investment.

He says the allegations of graft were levelled against him after he cancelled the project in question because the businessman in charge could not get the necessary funding.

Whatever the outcome of Mr Wijesinghe's legal battle, the accusations will be politically damaging for the government.

He is known to be a close associate of the President, Chandrika Kumaratunga, who herself has complained that corruption ate up 40% of the country's development budget.

This will only reinforce the impression in the minds of ordinary Sri Lankans that the elite is amassing illicit wealth while they struggle on burdened with huge price increases.