Sri Lanka, July 1 -- In a significant step towards strengthening good governance and transparency in Sri Lanka, the Government of Japan has extended a grant of USD 2.5 million to support a new anti-corruption initiative implemented by the United Nations Development Programme (UNDP).

"Corruption undermines sustainable development, the well-being of its citizens, their trust in institutions and tax morale. The cost of corruption is felt by all segments of society and the economy. Corruption significantly deters foreign investments, as it creates an unpredictable and risky business environment," the UNDP said in a statement.

Investors often perceive high levels of corruption as indicative of weak governance and regulatory frameworks, leadi...