Rs. 74 b moved through 89 accounts in alleged Undiyal operation

Wednesday, 19 August 2026 05:28 - - {{hitsCtrl.values.hits}}

Cabinet Spokesman and Minister Dr. Nalinda Jayatissa yesterday disclosed that a total of Rs. 74 billion has allegedly been transferred overseas through 89 bank accounts in 10,151 transactions as part of an Undiyal money transfer operation involving the suspected illegal movement of around $ 1 billion.

Speaking at the weekly post-Cabinet media briefing, he said the transactions were uncovered during an investigation into the alleged illegal transfer of funds out of Sri Lanka.

“Funds have been transferred through 89 accounts on 10,151 occasions. The total value of the money transferred out of the country is Rs. 74 billion,” Dr. Jayatissa said.

The investigation was launched in January 2026 following a complaint by the Additional Director General of Sri Lanka Customs to the Financial Crimes Investigation Division (FCID).

An individual was arrested in Negombo on 19 June and initially held under a seven-day detention order before being remanded. Subsequent investigations led to the arrest of four managers of leading private banks, who are being prosecuted under the Prevention of Money Laundering Act and the Penal Code.

Dr. Jayatissa said the Colombo Chief Magistrate’s Court had also authorised investigators to obtain information relating to 210 bank accounts connected to the probe.

The funds were allegedly transferred overseas through the Telegraphic Transfer (TT) system, with investigations continuing into the individuals and financial institutions linked to the transactions.

The latest disclosure forms part of a wider CID investigation into an alleged scheme in which large sums of foreign currency were transferred overseas under the guise of payments for imports.

The investigation centres on Jeffrey Mohamed, who had allegedly established around 36 companies purportedly engaged in importing goods and approached four private banks to open accounts for those companies. Investigators allege that although funds were remitted overseas as import payments, the corresponding goods were not subsequently brought into Sri Lanka.

The CID has further alleged that the four arrested bank officials personally met Mohamed and facilitated transactions, with some meetings reportedly taking place almost every Friday. Investigators have alleged that the officials received payments ranging from Rs. 30,000 to Rs. 100,000 a week, while one official allegedly received around Rs. 1 million on a single occasion.

The CID has also alleged that required checks were not carried out when accounts were opened for companies connected to the transactions.

However, lawyers representing the bank officials have rejected the allegations, arguing that some of the suspects were junior employees whose responsibilities were limited to obtaining customer information and processing banking procedures. They maintained that verifying whether companies had actually imported goods and complied with wider regulatory requirements was beyond their duties.

The suspects’ bail applications were rejected and the four bank officials were ordered to remain in remand custody until 20 August.