Sri Lankan authorities have uncovered a large-scale foreign exchange fraud in which millions of dollars were allegedly transferred overseas under the guise of importing goods that never arrived in the country, Public Security Minister Ananda Wijepala told Parliament.
Presenting details of ongoing investigations by the Police, the Central Crime Investigation Bureau, the Financial Crimes Investigation Division, and Sri Lanka Customs, the Minister said organised groups had registered numerous companies and used telegraphic transfers (TT) to remit funds to foreign entities while falsely claiming to be importing goods.
According to the Minister, one investigation revealed that a company had transferred Rs. 12.89 billion through 953 transactions to 256 companies in 26 countries, resulting in the outflow of US$42.7 million. Investigators found that no goods corresponding to these payments had been imported into Sri Lanka.
A second investigation linked to a narcotics probe uncovered another company that allegedly transferred around Rs. 13 billion overseas through four bank accounts while claiming to import items such as hardware, bathroom fittings and gold products. Authorities found that no such imports had taken place. The transactions are estimated to have involved a further US$43 million.
Wijepala said a third investigation launched following information provided by Sri Lanka Customs found that between 2023 and 2025, funds had been transferred abroad through 26,108 TT transactions using 227 bank accounts across 13 banks. Investigators identified 105 local companies linked to the operation, many of which had been registered under a small group of individuals and closed within months.
The Minister said preliminary findings suggest that shell companies were repeatedly created and used to move funds abroad before being shut down, raising concerns about possible money laundering, foreign exchange violations and links to other criminal activities.
He said the Government has already taken steps to strengthen oversight, including requiring import-related companies to register with Sri Lanka Customs and use Tax Identification Numbers (TINs) for import activities.
Wijepala 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.
The investigations are ongoing, and authorities are examining whether public officials or banking personnel may have failed to carry out required oversight responsibilities. (Newswire)
