How Sri Lankan workplace culture allows fraud to thrive – and what we can do about it

FRAUD in Sri Lankan organisations is not just a question of weak controls and/or antiquated systems.

- By Ashane Jayasekara

When decisions are unquestioned simply because they come from seniority, suspicious behaviour passes without scrutiny.

Rather, it is intricately linked to the cultures of our workplaces-our attitudes toward authority, relationships, conflict, and reputation. These cultural dynamics foster an environment in which wrongdoing can start silently, grow over time, and be hidden longer than may be possible in more rules-driven environments.This layer of the culture should be properly understood if one is serious about fighting fraud. Most organisations invest in systems and audits, yet they completely disregard the quiet patterns of behaviour that accommodate fraud. It is now time to honestly take a look at habits, norms, and social pressures that keep people silent, questioning discouraged, and misconduct normalised.

The traditional workplaces in Sri Lanka are hierarchical. Challenging a superior, even with good intentions, is often perceived as disrespectful. To many employees, questioning the manager, financial head, or director feels like crossing the line.

This silence provides fertile ground for fraud. When decisions are unquestioned simply because they come from seniority, suspicious behaviour passes without scrutiny. Employees may notice inconsistencies but keep quiet, convinced that “it’s not my place” to raise concerns.

This respect for authority is culturally valued yet inadvertently protects those who misuse their power.