By Antonella Vallejos
Executive Summary
The UK’s approach to Deferred Prosecution Agreements (DPAs) provides valuable insights for jurisdictions like Sri Lanka, which recently introduced DPAs through its domestic legislation. The structured process, emphasis on judicial oversight, and focus on corporate reform serve as a robust model for adapting DPAs to local contexts.
This article explores the use of DPAs as an anti-corruption tool and outlines the recent training programme delivered to Sri Lankan prosecutors and investigators by ILP and its partners.
Introduction
The International Lawyers Project (ILP), in partnership with leading legal experts, conducted a training programme between August and December 2024 for Sri Lankan prosecutors and investigators from the Commission to Investigate Allegations of Bribery and Corruption (CIABOC) on Deferred Prosecution Agreements (DPAs). DPAs are legal mechanisms that allow corporate entities accused of wrongdoing to avoid prosecution by cooperating with authorities, paying fines, and implementing compliance reforms, provided they meet specified conditions.
Tailored to enhance Sri Lanka's capacity to address corporate corruption, an expert training team selected by ILP conducted weekly or fortnightly training sessions on every aspect of negotiating a DPA agreement with a corporation under investigation for corruption, in order to help Sri Lanka reduce corporate corruption. The training was specifically designed to support and step up the efforts of the CIABOC, Sri Lanka’s independent anti-corruption agency, in its role of investigating and addressing corruption cases. With the recent establishment of a new government in Sri Lanka, elected on an anti-corruption platform, this project comes at a crucial time in the country's national governance reform agenda.
Addressing the Challenges of Corporate Corruption
In 2022, Sri Lanka defaulted on its foreign debt, triggering the worst economic crisis in its history. Sri Lankans protested in the streets demanding accountability for corruption and recovery of assets allegedly stolen by members of the former ruling family. The country’s economic crisis caused severe shortages of food, medicine, fuel, and electricity which led to massive street protests that forced then-President Gotabaya Rajapaksa to flee the country and resign.
In response to the economic instability and public unrest, Sri Lanka secured a US$2.9 billion bailout from the International Monetary Fund (IMF). This bailout came with requirements for the government to undertake broad and deep anti-corruption and governance reforms to promote transparency and address the underlying causes of the crisis.
A key outcome of these reform efforts was the enactment of the Anti-Corruption Act (ACA) in 2023, which introduced critical measures designed to strengthen Sri Lanka’s capacity to combat economic crime and improve public sector accountability. The ACA granted expanded powers to CIABOC, placing it at the forefront of Sri Lanka’s anti-corruption efforts. Among the tools introduced by the ACA were DPAs, an approach inspired by successful anti-corruption models in other countries such as the UK, US, France and Canada.
DPAs as an anti-corruption tool
As a technical and complex legal instrument, the success of DPAs depends on the prosecutor's ability to incentivise companies to engage in real and long-term anti-corruption reforms and – where potential issues leading to criminal liability are uncovered – to cooperate with CIABOC in their investigations. In return, the company will benefit from a DPA. Used well, DPAs can be a significant tool in the fight against corruption and towards both promoting a transparent and competitive business climate and a positive change in corporate culture.
DPAs allow prosecution authorities to work directly with corporations implicated in economic crimes, offering them a structured path to reform their practices and resolve cases without resorting to criminal prosecution. Through these agreements, charges are deferred while the company agrees to meet specific compliance conditions and pay a suitable penalty. Terms of a DPA usually include strengthening internal controls, paying fines and disgorgement of any profits from corrupt contracts.
In exchange, companies avoid the reputational damage and operational disruption caused by a criminal trial or the admission of a criminal offence, and resource-strapped prosecutors gain an efficient means to secure compliance, address criminal misconduct, penalise companies engaged in corruption, and obtain cooperation and evidence that may be used to prosecute implicated individuals. This framework aligns public interest considerations with efficient legal enforcement, offering a pathway to accountability without the cost and uncertainty of a criminal trial.
The UK’s approach to DPAs provides valuable insights for jurisdictions like Sri Lanka. The structured process, emphasis on judicial oversight, and focus on corporate reform serve as a robust model for adapting DPAs to local contexts. By leveraging these best practices, Sri Lanka can strengthen its enforcement mechanisms, encourage compliance within the private sector, and support broader anti-corruption objectives aligned with international standards. With the enactment of the ACA, DPAs have now become available for the first time in Sri Lanka and provide CIABOC with a valuable instrument for managing corporate misconduct in a way that is both flexible and enforceable.
Delivering Specialised Training for CIABOC
ILP’s tailored training program, created and delivered by legal experts from Simmons & Simmons, whose team was led by Camilla de Silva, a partner in the Disputes & Investigations team with extensive experience in DPAs during her tenure at the UK Serious Fraud Office (SFO). Camilla was part of the SFO’s senior negotiation team for the agency’s first global DPA - the Rolls Royce DPA- and she also played a pivotal role in the Airbus DPA, the largest and most complex DPA ever concluded by the SFO.
The training offered practical guidance on prosecutorial discretion, judicial oversight, and compliance requirements. Through structured discussions on DPA negotiation, confidentiality, and enforcement mechanisms, the sessions were tailored to the Sri Lankan legal context. Drawing parallels with the UK’s framework, participants developed a nuanced understanding of the DPA lifecycle, from initiation to conclusion.
Camilla invited Lord Edward Garnier KC to lead a discussion with the participants in October 2024. Lord Garnier was the UK’s Solicitor General during the drafting, enactment, and implementation of DPAs into UK legislation and legal practice. The session was a candid discussion between Camilla and Lord Garnier KC of how an investigations agency, with little experience of DPAs and limited financial resources, can successfully introduce and seek to conclude DPAs with some of the world’s largest, most powerful companies, and how to persuade external stakeholders such as the judiciary and Parliamentarians as to the benefits of DPAs so they can be used as an effective tool to fight corruption in economic markets.
Camilla de Silva’s sessions included an in-depth analysis of UK DPAs, including multimillion-dollar settlements such as those involving Rolls-Royce and Airbus. Her team provided structured guidance on prosecutorial strategies and compliance frameworks, sharing real-world applications of DPA principles.
Alun Milford, the SFO’s former General Counsel, a current partner in the Criminal Litigation team of Kingsley Napley also travelled to Colombo to deliver two workshops focusing on negotiation complexities, confidentiality, and judicial oversight. His expertise enriched the participants’ understanding of global settlements and post-approval compliance, shedding light on strategies to ensure effective implementation in Sri Lanka.
Sri Lanka’s adoption of DPAs means the country now has a stronger legislative basis to fight corporate corruption. By equipping CIABOC with the tools and expertise needed to implement these agreements, the ILP training programme has helped to establish a foundation for corporate accountability within the framework Sri Lanka’s ACA. The final workshop held in late December 2024 concluded the three-month training course by addressing challenges specific to the Sri Lankan context. Through practical examples and expert-led discussions, participants completed the training equipped with actionable strategies to navigate the complexities of implementing DPAs effectively.
ILP's Governance & Accountability Programme organises tailored training and technical support for officials on governance and anti-corruption issues. If you would like support for your team, please get in touch with us to discuss how we can assist.
Antonella Vallejos is a Legal Fellow at ILP and a lawyer from Buenos Aires, she works within our Governance and Accountability and our Environment and Sustainability Programmes. Antonella previously worked at the Argentine chapter of Transparency International. She also serves as an Assistant Professor at the University of Buenos Aires. Currently, Antonella is pursuing a Master’s degree in Constitutional Law and Human Rights from the University of Palermo.
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