Thursday Jun 11, 2026
Thursday Jun 11, 2026
Thursday, 11 June 2026 00:00 - - {{hitsCtrl.values.hits}}
Sri Lankan authorities have uncovered a large-scale foreign exchange fraud involving tens of millions of dollars allegedly remitted overseas for imports that never entered the country, Public Security Minister Ananda Wijepala told Parliament yesterday.
Presenting details of ongoing investigations by the Police, Central Crime Investigation Bureau, Financial Crimes Investigation Division and Sri Lanka Customs, Wijepala said organised groups had established multiple companies and used telegraphic transfers (TTs) to send funds abroad while falsely claiming to import goods.
One investigation found that a company had remitted Rs. 12.89 billion through 953 transactions to 256 companies across 26 countries, resulting in an outflow of $42.7 million. Investigators found no evidence that goods corresponding to those payments had been imported into Sri Lanka.
A separate probe linked to a narcotics investigation uncovered another company that allegedly transferred around Rs. 13 billion overseas through four bank accounts under the guise of importing hardware, bathroom fittings and gold products. Authorities said no such imports had taken place, with the transactions estimated to involve a further $43 million.
Wijepala also disclosed that a third investigation covering the 2023-2025 period had identified 26,108 TT transactions routed through 227 bank accounts maintained at 13 banks. Investigators linked 105 local companies to the operation, many of which had been registered under a small group of individuals and shut down within months.
Preliminary findings suggest that shell companies were repeatedly created to facilitate overseas fund transfers before being dissolved, raising concerns over possible money laundering, foreign exchange violations and links to other criminal activity.
The Minister said the Government had already introduced measures to strengthen oversight, including mandatory registration of import-related businesses with Sri Lanka Customs and the use of Tax Identification Numbers (TINs) for import activities.
He also announced plans to amend legislation to once again classify foreign exchange control violations as offences that can be investigated under anti-money laundering laws.
Investigations remain ongoing, with authorities also examining whether any public officials or banking personnel failed to carry out required oversight responsibilities.
