Govt. urged to address system-wide financial security risks

Friday, 8 May 2026 04:41 - - {{hitsCtrl.values.hits}}

Opposition MP and President’s Counsel Faiszer Musthapha

Opposition MP and President’s Counsel Faiszer Musthapha yesterday urged the Government to take urgent measures to address what he described as widening system-wide governance and financial security risks, warning that recent cyber breaches, banking frauds, and institutional lapses could undermine investor confidence and economic stability.

Speaking in Parliament, Musthapha referred to the reported $ 2.5 million Treasury phishing scam and alluded to the Rs. 13.2 billion theft linked to National Development Bank PLC (NDB Bank), arguing that the incidents pointed to serious weaknesses in financial system oversight and institutional safeguards.

He said the Government should hold relevant officials accountable over the Treasury cyber breach, stressing that even if individuals were not personally corrupt, those entrusted with senior positions had a responsibility to ensure the security of institutions under their charge.

“As much as national security is important, economic security and economic stability are important,” Musthapha said, warning that repeated governance failures could damage Sri Lanka’s credibility among foreign investors.

He said the Treasury, which should represent one of the country’s most secure institutions, had suffered a major cyber breach, while questions were also emerging around the safety of funds within the banking system.

“If today I deposit money in a bank and I’m not sure that money will be there, if the money in the Treasury, which is supposed to be the most secure place, can’t be secure, there is a serious issue,” he said.

Musthapha argued that the developments could affect Sri Lanka’s ability to attract foreign direct investment (FDI), noting that investors closely monitor economic stability and institutional credibility before committing capital.

Drawing comparisons with accountability standards in other countries, he said officials responsible for institutional failures should face consequences irrespective of whether corruption was directly involved.

He also urged the Government to take a more proactive approach towards cybersecurity and financial oversight, particularly as Sri Lanka advances digitalisation initiatives across the public and banking sectors.

Musthapha called for the appointment of a special task force to examine emerging risks linked to financial system security, arguing that governance lapses, cyber fraud, and institutional weaknesses posed a growing threat to economic stability and investor confidence.

He further said the Central Bank of Sri Lanka (CBSL), which earns between Rs. 50-100 million in fees, had a responsibility to ensure effective supervision of banks and financial institutions, warning that regulatory failures could have wider implications for confidence in the country’s financial system.