Panama Papers secret finance exposé:

Lankan authorities to request local data

Sri Lankan law enforcement agencies are expected to shortly begin global inquiries to unearth detailed data on Sri Lankan secret account-holders listed in the ‘Panama Papers’ journalistic exposure. National investigative agencies are likely to formally approach the Europe-based investigative journalists’ consortium which recently released to the global media, millions of documents of computer-based data on bank accounts and secret ‘shell’ companies by individuals across the world.

These accounts and secret commercial entities that exist only in name are legal but are known as a standard tactic by people attempting to evade taxation and to hide non-legal financial transactions.

Sri Lankan law agencies will write to the investigators responsible for the ‘Panama Papers,’ requesting data relevant to Sri Lanka.

A top government source told the Sunday Observer that though the government has not reacted to the references made in the Panama Papers to Sri Lankan companies and individuals, the island’s law enforcement agencies appear keen to acquire information now available with the international investigative group with a view to assisting ongoing investigations, particularly inquiries into large scale corruption and offshore companies. “They could be useful now or in the immediate future,” the source said.

Although an interactive map published online indicated there are three Sri Lankan companies, three clients and 22 shareholders included in the explosive ‘Panama Papers,’ so far there had been no moves made by the government to formally access country specific information.

The top government source said the law enforcement agencies see ‘high relevance’ in acquiring the information that may prove useful at present or in the near future. So far, no attempt has been made directly connect with the legal firm Mossack Fonseca which collaborated with the International Consortium of Investigative Journalists (ICIJ), a project of the Center for Public Integrity in the United States.

Giving a clue of the possible interest areas, Deputy Minister of State Enterprises, Eran Wickremeratne, told the Sunday Observer that the government was keeping close watch on disclosures made through the Panama Papers, in particular, “ On the Shell companies, set up in the in Seychelles.”

Some 14,000 Shell companies are said to be incorporated in Seychelles and only 204 real owners have so far been identified, Wickremeratne said. He added that the government officials are concerned about Seychelles, because a Sri Lankan bank had opened a branch in that island a couple of years ago, during the last regime, and air links had also been started in the immediate aftermath.

Advisor to the Sri Lankas’ Anti-Corruption Front, Keerthi Tennakoon said that the ICIJ has already commecned processing data on the island and caleld for “urgent and comprehensive inquiry into offshore accounts maintained by Sri Lankans.”

Meanwhile, an independent economic analyst who spoke on the basis of anonymity said the Department of Inland Revenue should begin inquiring into the individuals and the companies by “proactively acquiring the information now available with the ICIJ.”

Former banker Rienzie WIjetilleke told the Sunday Observer that “Sri Lankans have always known that on both sides of the political spectrum, there has hardly been credibility expected of leaders. Panama Papers are a great leveller, showing how corrupt the global political leadership is. It is shocking that this is worldwide phenomenon and international organizations must call for investigations of a global scale.”