It is not correct to perceive Sri Lanka’s balance of payments crisis as a sole outcome of the inadequacies in the country’s economic and monetary management. The rampant corruption has been a major factor of it. There was no desirable environment in the country conducive to maintaining proper financial management. Since the establishment of a presidential system of governance by the 1978 Constitution placing the President, the head of the State above the law, plunder of public property assumed a regular feature of the system of governance. Since then, corruption has become an uncontrollable an…