Sri Lanka’s Election Commission (ECSL) struggled to verify candidate expenditure reports during the last presidential election, according to the European Union Election Observation Mission (EUEOM). The EU report pointed out significant gaps in campaign finance oversight, stressing that while campaign spending limits were introduced, transparency remained low.
Limited Transparency Despite Spending Limits
The Regulation of Election Expenditure Act, of 2023, introduced spending caps for candidates for the first time, aiming to promote fairness in elections. However, the EU report found that the ECSL lacks the legal power and obligation to scrutinize financial reports submitted by candidates. It also does not collaborate with other institutions to verify the accuracy of these reports.
Loopholes in Campaign Finance Laws
Key issues include the absence of caps on individual donations and no disclosure requirements until after the election. While donations from public corporations and state-owned companies are banned, donations from companies benefiting from public contracts remain unrestricted. Additionally, candidates were not required to follow a standardized reporting format, making it harder to compare and analyze financial data.
Lack of Accountability for Media and Social Media Advertising
The EU report also highlighted that media outlets and social media platforms are not required to disclose the cost of political advertising or the revenue generated. This lack of accountability further weakens the effectiveness of campaign finance reforms.
Election Spending Limit Set at 1.8 Billion Rupees
Campaign spending limits were set at a maximum of 1.8 billion Sri Lankan rupees per candidate. Despite these limits, the transparency of spending was minimal, particularly in the digital space.
Recommendations for Strengthening Campaign Finance Oversight
The EUEOM recommends expanding the powers of the ECSL to include verification of financial reports, in collaboration with other institutions. The report also suggests introducing digitalized, standardized reporting for candidates and mandatory disclosure of prices and revenue from political ads by media outlets and online platforms.
Digital Ad Transparency Lacking in Sri Lanka’s Presidential Election
Digital advertising transparency was particularly weak during the September 21 presidential election. The only available source of information was Facebook’s ad library, as other platforms like X and Google had either unresponsive or non-existent transparency tools in Sri Lanka.
The NPP led by Anura Kumara Dissanayaka promised to be transparent about its campaign expenditure including funds received from Diaspora supporters.
