A total of Rs. 74 billion was allegedly transferred overseas through 10,151 transactions using 89 bank accounts, Cabinet Spokesman Minister Dr. Nalinda Jayatissa revealed, providing further details on an investigation that has already led to the arrest of four officials attached to private banks.
Speaking at the Cabinet media briefing, Jayatissa said the investigation was launched following a complaint made to the Financial Crimes Investigation Division (FCID) by the Additional Director General of Sri Lanka Customs in January 2026.
Investigators subsequently reported facts to the Colombo Chief Magistrate’s Court and obtained court approval to examine information relating to 210 bank accounts.
According to the Minister, a suspect was arrested in Negombo on June 19 as part of the investigation and was initially detained for seven days for questioning. He has since been remanded.
“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,” Jayatissa said.
He said further investigations led to the arrest of four officials, including managers and executives, attached to four private banks.
The Minister said the transactions under investigation had been carried out through telegraphic transfers and that facts were being reported to court under the Prevention of Money Laundering Act and the Penal Code.
The latest disclosure comes amid a wider CID investigation into an alleged scheme involving the transfer of large amounts of foreign currency overseas under the guise of importing goods into Sri Lanka.
The investigation centres on Jeffrey Mohamed, who was previously arrested in connection with the alleged operation.
Investigators previously told court that Mohamed had allegedly established around 36 companies claiming to import goods into Sri Lanka and approached four private banks to open accounts linked to the companies.
Despite funds being transferred overseas purportedly as payments for imports, investigators alleged that corresponding goods were not brought into Sri Lanka.
The CID also alleged in court that the four arrested bank officials had personally met Mohamed and assisted with banking transactions, with meetings allegedly taking place almost every Friday.
Investigators claimed the officials received payments ranging from Rs. 30,000 to Rs. 100,000 per week at different times, while one official allegedly received around Rs. 1 million on a single occasion.
The CID further alleged that the officials failed to conduct required checks when facilitating the opening of accounts for companies linked to the transactions.
The Rs. 74 billion figure disclosed by Jayatissa relates to the 10,151 transactions currently identified through 89 accounts. Previous evidence presented to court alleged that a broader group of 89 Sri Lankan-registered companies had transferred more than Rs. 190 billion overseas in US dollars purportedly for imports.
Investigators had focused on 36 of those companies, with around Rs. 75 billion previously alleged to have been transferred through 10,151 transactions without corresponding imports entering Sri Lanka.
The wider investigation has also examined possible links to drug trafficking, with investigators alleging that funds generated through drug-related activities may have been channelled through the financial network.
Lawyers representing the arrested bank officials have rejected the allegations, arguing that some of the suspects were junior-level employees whose duties were limited to obtaining customer information and handling banking procedures.
The defence argued that verifying whether companies had actually imported goods and complied with wider regulatory requirements was outside the responsibilities of the junior officials.
Their requests for bail were rejected, and the four suspects were ordered to be remanded until August 20. (Newswire)