Sri Lanka Podujana Peramuna (SLPP) MP Namal Rajapaksa has insisted that the $2.5 million Treasury debt diversion scandal cannot be dismissed as a “technical error,” stressing that it raises serious questions of public finance accountability under the Public Finance Management Act No. 44 of 2024.

In a post on X, Rajapaksa pointed out that under Sections 4 and 28 of the Act, the Minister of Finance is responsible for fiscal oversight and authorising expenditure warrants, while under Sections 5, 29 and 36, the Secretary to the Treasury is tasked with operational control and safeguarding computerized public financial systems.

He argued that if warnings were raised and an unsecured system was still used to handle public funds, accountability cannot be separated between policy approval and administrative execution, and both levels must be examined.

“This is now a test of consistency and transparency in governance: will the same standards of accountability that are publicly stated be applied equally when a complaint is formally made, and names arise in an investigation?” Rajapaksa wrote.

He further recalled President Anura Kumara Dissanayake’s statement on May 12 that if a person’s name arises in an investigation, a statement must be recorded “even from the President himself,” adding that no one is above the law.

“That principle must now be applied uniformly, without exception or delay,” Rajapaksa said. (Newswire)

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The Central Bank of Sri Lanka (CBSL) and the Ministry of Finance are working together to strengthen systems and prevent a repeat of the alleged fraudulent transfer of USD 2.5 million belonging to the Finance Ministry, CBSL Governor Dr. Nandalal Weerasinghe said.

The Governor made these comments addressing the media briefing at the Central Bank today (13), Dr. Weerasinghe said both institutions are reviewing existing procedures and using their expertise to introduce safeguards against similar incidents in the future.

Responding to questions from journalists, the Governor clarified that, as the banker to the government, the Central Bank is not directly responsible for altering or verifying payment instructions issued by account holders

He explained that once account details and payment mechanisms are properly verified, the Central Bank’s role is limited to processing the transaction.

“For an example, if your bank is instructed to make a payment from your account to another account, the bank’s responsibility is to verify the bank account number. If the system recognizes it, the payment will be made, that is what they do. Beyond that, the bank does not have a right to change the instructions you have given,” Dr. Weerasinghe explained. 

He further stated that banks do not have the authority to change customer instructions, while confirmation of receipt after a transfer is generally handled by the receiving institution.

He added that statements related to the fraudulent transaction in question would have been received by the relevant institution in Australia. (Newswire)

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Minister of Public Security Ananda Wijepala informed Parliament today that statements have been recorded from 21 individuals in connection with the USD 2.5 million cyber theft at the Treasury.

He said a complaint has been filed with the Criminal Investigations Department (CID) regarding the incident, and that a comprehensive investigation is currently underway.

“An investigation is underway into the incident. If there are persons responsible for the money transfer to a third party, they will be brought before the law. There is no argument on this,” the Minister stated.

Pointing out that this is not the first financial misappropriation to occur in Sri Lanka, Wijepala stressed that the government will take the necessary legal action in this regard. (Newswire)

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Sri Lanka Police have arrested 74 foreign nationals suspected of violating visa regulations and engaging in financial fraud during a raid in Colpetty on Wednesday (06).

According to the Police, the operation, carried out by officers of the Sri Lanka Police together with the Colpetty Police Station, targeted a housing complex in Uttarananda Mawatha within the Colpetty Police Division.

The Police said the suspects included 41 men and 33 women, all Vietnamese nationals aged between 19 and 39 years. 

They were taken into custody on suspicion of overstaying visas and involvement in fraudulent financial activities.

The Colpetty Police are conducting further investigations. (Newswire/ AI image)

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A tense situation arose in Parliament today (05) when the Opposition demanded an urgent debate on the US$2.5 million Treasury cyber theft.

Chief Opposition Whip MP Gayantha Karunathileke told the House that a written request had been submitted to the Speaker. 

Following the proposal, several Opposition MPs stood in their seats, pressing the government to allow the debate.

Responding, Speaker Jagath Wickramaratne clarified that an urgent debate can only be held if the proposal is submitted before the session begins and approved by both the Speaker and Parliament.

A heated exchange ensued between the Speaker and Opposition MPs, after which Leader of the House Bimal Rathnayake informed the chamber that the government was prepared to hold the debate today.

Minister Rathnayake announced that the government was open to holding the urgent debate from 3.30 p.m. to 5.30 p.m. (Newswire)

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According to Ada Derana, quoting Police sources, the death is suspected to be a suicide, although there has been no official confirmation yet.

He had been under investigation following the high-profile incident involving the diversion of state funds, believed to have been carried out by hackers through compromised communication channels.

The deceased had been suspended from duty pending the outcome of ongoing investigations into the incident.

Police said further inquiries are underway to establish the circumstances surrounding the death. (Newswire)

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Committee on Public Finance (COPF) Chairman Harsha de Silva says he has not been informed of Treasury Secretary Harshana Suriyapperuma’s appearance before the committee today (30) regarding the US$2.5 million cyber theft from the Treasury.

“I do not know, and I have not been informed. However, I did not accept his refusal to be present today and request for another day. I have written to him and told him that the Committee will meet as planned,” MP Harsha said in a statement on ‘X’.

His comments come as reports emerged that Suriyapperuma, along with senior Finance Ministry officials, will appear before the COPF at 01.00 pm today to provide explanations over the US$2.5 million cyber theft from the Treasury.

Suriyapperuma is reportedly appearing before the COPF today, despite having earlier informed the committee in writing that he was unable to attend today’s session and requested an alternative date after May 5, citing the President’s expected statement in Parliament on the matter.

The COPF meeting is scheduled to proceed this afternoon, with members expected to deliberate on the alleged diversion of USD 2.5 million in Treasury funds, in a case linked to a suspected email scam involving a foreign debt repayment.

The payment, made as part of Sri Lanka’s external debt servicing process, had been redirected to a third party through a fraudulent email resembling that of Australia’s Export Finance Agency. (Newswire)

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Secretary to the Ministry of Finance and the Treasury, Harshana Suriyapperuma, will appear before the Parliamentary Committee on Public Finance (COPF) today (30), regarding the cyber theft involving US$2.5 million from the Treasury.

It is reported that the Finance Ministry Secretary will report to the COPF along with several senior officials of the Ministry of Finance at 01.00 pm. 

Suriyapperuma had been summoned along with senior Finance Ministry officials to appear before the COPF to provide explanations over the  US$2.5 million cyber theft. 

However, Suriyapperuma had informed the COPF in writing that he is unable to appear before the committee on Thursday (30). 

COPF Chairman Harsha de Silva confirmed that the committee received a letter from the Finance Ministry Secretary yesterday notifying them of his inability to attend the scheduled session, and that he had requested an alternate date after May 5th.

According to de Silva, the Finance Ministry Secretary had sought a postponement as the President is expected to make a statement in Parliament on the matter before that date. (Newswire)

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Sri Lanka’s Criminal Investigation Department (CID) on Tuesday informed the Colombo Fort Magistrate’s Court that investigations are underway into the alleged diversion of USD 2.5 million in Treasury funds, in a case linked to a suspected email scam involving a foreign debt repayment.

Officials told the court that the payment, made as part of Sri Lanka’s external debt servicing process, had been redirected to a third party through a fraudulent email resembling that of Australia’s Export Finance Agency.

The CID, reporting to Magistrate Isuru Neththikumara, said a 27-page report containing sensitive details had been submitted and requested that it be placed under secure custody due to the nature of the investigation.

According to investigators, the incident stems from a complaint lodged on March 24, 2026. The funds were intended for an official payment to an Australian government-linked institution through the External Resources Department and the State Debt Management Office.

However, a fraudulent email, closely mimicking the legitimate domain, had been used to send payment instructions. The original domain “exportfinance.gov.au” had allegedly been altered to “exportfinance.av.com,” leading to the transfer being made without further verification.

CID officials said they are examining whether there had been any unauthorised access to the email systems of the External Resources Department or related institutions. Initial checks with the Sri Lankan firm managing the email servers have not yet confirmed a breach, though further forensic analysis is ongoing.

Investigators noted that the system processes around 15,000 emails daily, complicating efforts to trace potential intrusions. They also told the court that, despite a prior warning regarding the suspicious domain change, the payment had been processed after the alert was issued.

The court was further informed that standard verification procedures for such transactions appeared to rely primarily on email communication, with no additional confirmation mechanisms in place before funds were released.

The CID said investigations are also exploring whether systems of the Australian institution may have been compromised. Assistance is being sought from international agencies, including Interpol and the Australian Federal Police.

No suspects have been named so far. However, the CID requested travel bans on five individuals believed to be directly linked to the email exchanges, along with permission to examine their bank accounts.

The court granted the requests and also approved the appointment of a technical committee comprising experts from the Sri Lanka Computer Emergency Readiness Team (SLCERT), the Government Analyst’s Department, and the University of Colombo’s Faculty of Computing.

Magistrate Isuru Neththikumara instructed investigators to determine whether a criminal offence had occurred, identify those responsible, and take urgent steps to prevent similar incidents in future.

The case is scheduled to be taken up again on June 3 for further progress. (Newswire)

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Prime Minister Harini Amarasuriya says the government is taking the necessary legal action regarding the recent financial fraud involving unauthorized access to the computer system of the Department of External Resources under the Ministry of Finance. 

She noted that investigations have already commenced, with international assistance offered.

“In particular, the Government of Australia has informed us of its willingness to support the investigative process, as stated by the Australian High Commissioner,” the Prime Minister said.

Prime Minister Harini Amarasuriya further criticized the opposition, stating that they continue to attempt to inconvenience the government by raising baseless arguments, including false allegations against ministers. 

“A democratic country needs an opposition. However, the opposition still seems not to understand what the people expect from it. They are attempting to seize power through any means,” she said.

Pointing out the opposition’s claims of bridging a No-Confidence motion against her, PM Harini Amarasuriya said she was waiting for the move.

“They even said they would bring a no-confidence motion against me. I am also waiting for them to submit it to Parliament. Then I will have the opportunity to present my facts and respond,” she said. 

She made the remarks while speaking after paying respects to the Most Venerable Thibbatuwawe Sri Siddhartha Sumangala Abhidana Mahanayake Thero of the Malwathu Chapter, in Kandy today (24).

The comments come amid ongoing investigations into the cyber theft incident involving the Treasury, where Finance Secretary Harshana Suriyapperuma recently confirmed efforts are underway to recover as much as possible of the USD 2.5 million stolen by cyber criminals. (Newswire)

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