Tuesday Sep 01, 2026
Tuesday Sep 01, 2026
Tuesday, 1 September 2026 03:21 - - {{hitsCtrl.values.hits}}
Colombo Chief Magistrate Asanga S. Bodaragama has directed the Financial Crimes Investigation Division (FCID) to respond to an application by the first suspect in the case involving large advance payments to overseas exporters, seeking an investigation into whether goods were shipped to Sri Lanka against the funds remitted through local banks.
The case is in relation to an FCID investigation into allegations that 89 Sri Lankan companies remitted large sums to overseas exporters as advance payments for imports that investigators allege were never received in the country.
Colombo Chief Magistrate Asanga S. Bodaragama has directed the police Financial Crimes Investigations Division (FCID) to respond to Court on the written application under 124 CCPA made to the Chief Magistrate on behalf of first suspect Jiffry Mohamed of A Y Investments Impex Ltd., that FCID be directed to investigate directly or through the banks and ascertain from the overseas exporters by fax or email the relevant exports made by them to Sri Lanka in respect of the advance payments received by them from the banks in Sri Lanka.
The suspect has also submitted to Court through his Counsel that he believes that the goods were in fact exported to Sri Lanka by the overseas exporters in China and India to Sri Lanka and cleared by the respective importers from time to time and that it is vital for the police to investigate what happened to the monies that were sent by the several banks overseas.
Suspect’s Counsel M. M. Zuhair, PC told Court that no Sri Lankan importer would send huge amounts to overseas exporters without receiving the goods for which he had made advance payments through banks!
The suspect and his 34 associate companies, he said, are not the importers. That A Y Investments performed a limited operational service for a nominal commission. They receive funds in rupees from brokers for transferring the said sums in rupees to the banks and that the banks after exercising due diligence convert the rupees into foreign currencies and remit the foreign currencies to the overseas exporters.
FCID has not reported to Court on the rest of the 89 companies other than suspect’s 34 companies, he submitted.
Counsel submitted that advance payments are lawful under the ‘Special Import license and Payment Regulations No 1 of 2011 issued by then President of Sri Lanka under the Import and Export (Control) Act and Article 44 of the Constitution issued 15 years ago. Regulations were amended by the incumbent President in June 2026 and that the 2011 regulations as amended are in force.
He said Police have not referred to these regulations, which permit advance payment for imports, in their several reports to Court.
As the suspect is in remand, he is unable to himself assist the Police and that he had while in custody provided assistance whatever possible to the investigators but he could do better if he is enlarged on bail, he has said in the written application for bail. Counsel pleaded that the suspect has no previous convictions or Police involvement and he be released on bail with whatever strict conditions Court may impose.
In the written application, suspect has submitted that he is entitled to a ‘just, fair and complete investigation’ by the police, in the case where Police allege that huge amounts of monies had been sent to overseas exporters by 89 Sri Lankan companies for imports but that no imports, Police allege, had been received.
Counsel appearing for the four bank employees arrested and in remand said that they were junior employees and had not committed any offence and sought bail. Court made order remanding the suspects until 3 September.
