Nandalal backs Ravi K call for multi-agency probe into alleged $ 1 b phantom imports

Wednesday, 8 July 2026 00:00 - - {{hitsCtrl.values.hits}}

Central Bank Governor Dr. Nandalal Weerasinghe

MP Ravi Karunanayake

Welcomes MP Ravi Karunanayake’s call for detailed inquiry involving Central Bank, Customs, banking sector and other agencies
Says alleged transactions require broader investigation before conclusions can be drawn
Notes timing differences and advance payments could explain about 40% of questioned transactions

Central Bank Governor Dr. Nandalal Weerasinghe has backed calls for a multi-agency investigation into the alleged $ 1 billion phantom imports controversy, saying only a coordinated inquiry involving all relevant authorities can establish how the transactions occurred, identify regulatory gaps and determine what corrective action is required.

Appearing before the Parliamentary Committee on Public Finance (CoPF) last week, Dr. Weerasinghe welcomed a recent proposal by Ravi Karunanayake for a dedicated discussion on the issue, saying the Central Bank would be prepared to participate alongside other agencies to examine the matter comprehensively.

“I saw in the media MP Ravi Karunanayake had asked for a meeting. I think it’s good to have that detailed discussion with authorities and we can come and basically share our views and ideas on how that has happened, what leads to that kind of thing and what are the gaps in the legislations,” the Governor said (please see: https://www.ft.lk/front-page/Ravi-urges-CoPF-to-summon-CBSL--banks-over-alleged---1-b-trade-fraud/44-793934).

He said the inquiry should involve the Central Bank, Sri Lanka Customs, the Import and Export Control Department, commercial banks and other relevant agencies to examine their respective roles, identify regulatory gaps and review existing safeguards.

Dr. Weerasinghe said the alleged transactions had already been the subject of discussions involving President Anura Kumara Dissanayake, Customs, foreign exchange authorities and other institutions, adding that the Import and Export Control Department had subsequently issued directions intended to address the issue. However, he cautioned that the Central Bank was not privy to information held by law enforcement authorities regarding the specific allegations.

“We don’t have that information. This is a much broader investigation. I don’t think we can comment on that transaction right now without information,” he told the committee.

The Governor also clarified the treatment of advance payments for imports, saying such payments were permissible under Sri Lanka’s foreign exchange framework where supported by an underlying trade transaction. He noted that differences between foreign exchange regulations and Customs procedures meant some transactions could legitimately appear in Central Bank payment records before corresponding import declarations were reflected in Customs data.

Central Bank officials said the discrepancies should not automatically be interpreted as phantom imports because timing differences, advance payments and documentation requirements could account for a significant share of the reported amount. Officials indicated that preliminary analysis suggested about 40% of the questioned $ 1 billion appeared to relate to genuine imports, reinforcing the Governor’s view that conclusions should await a comprehensive investigation.