News
Crypto loopholes funnel Lankan funds abroad
Chief Magistrate draws CB attention to massive drain in foreign exchange through cryptocurrency deals
Colombo Chief Magistrate Asanga S. Bodaragama yesterday observed that loopholes in actions carried out by State financial institutions, under the Foreign Exchange Act, had enabled funds in Sri Lanka to be transferred overseas, through cryptocurrency transactions.
The Magistrate said immediate steps should be taken to curb such activities and to educate the public, and directed that the matter be brought to the attention of the Central Bank of Sri Lanka.
He noted that cryptocurrency transactions carried out, using modern technology without approval from the Central Bank, had taken place without adequate public awareness, adding that incidents of the nature were increasingly being reported before courts.
The Magistrate observed that investigations into such incidents appeared to be confined to court proceedings alone and emphasised that the Central Bank, as the country’s principal financial regulator, together with other relevant institutions, should take appropriate measures and raise public awareness in the interest of the public and the country.
He also said the Criminal Investigation Department and the Central Bank should take steps to educate the public on such financial frauds and introduce a proper mechanism to address the issue.
The court further observed that many individuals had exploited loopholes in the Foreign Exchange Act and related procedures to commit financial fraud, and stressed that the Central Bank should take necessary action upon being apprised of such matters.
The Magistrate made these observations when a case relating to an alleged Rs. 290 million fraud at a well-known private bank was taken up before court yesterday. The suspects are alleged to have fraudulently obtained public funds through cryptocurrency transactions using accounts on Binance.
The Magistrate also directed the Criminal Investigation Department to expedite investigations into the disappearance of Rs. 290 million and report progress to court.Observing that the incident was not an ordinary case, the Magistrate instructed the CID to take prompt action to prevent similar frauds carried out through Binance platforms.
Making further observations, the Magistrate noted that the suspects had been produced before court, over the past three months, in connection with the incident, and stressed that investigations should be completed promptly by gathering all relevant information.
He earlier observed that the case did not involve a minor offence, such as ordinary theft, but a serious matter concerning the fraudulent misappropriation of public funds, through Binance accounts, and emphasised the need for swift action to prevent such crimes.
Nineteen suspects, connected to the incident, had earlier been remanded and subsequently released on bail.
The case was fixed to be called again on 15 May .
Advisory for strong winds and rough seas for Multi-day boats in the Bay of Bengal deep sea areas
Issued by the Natural Hazards Early Warning Centre
Issued at 05.00 p.m. 18 September 2026, valid for the next 24 hours.
PLEASE BE AWARE!
The atmospheric disturbance to the North of the Andaman Islands in the Bay of Bengal, is likely to develop into a low pressure area within the next 24 hours.
Due to its influence, wind speed over the Bay of Bengal sea areas will increase during the next few days starting from
tomorrow (19th).
The wind speed in the sea areas marked under the “Advisory” category on the map below will increase to 55-65 kmph at times and those sea areas will be rough or very rough at times.
Navel and fishing communities engaging the activities over this sea area are advised to be vigilant and be attentive to the future forecasts and bulletins issued by the department of Meteorology in this regards.
Text and Pic by Priyan de Silva
Director General of the Commission to Investigate Allegations of Bribery and Corruption (CIABOC) Ranga Dissanayake has questioned whether some promises contained in the National People’s Power (NPP) manifesto, A Thriving Nation – A Beautiful Life, could be fulfilled even if the government wanted to implement them.
Dissanayake raised the issue during a discussion following the release of the third biannual report on manifesto monitoring by the March 12 Movement, at the BMICH, on Wednesday.
He questioned whether the report had taken into account legal and institutional constraints affecting the implementation of certain pledges.
Citing the proposal to establish Anti-Corruption Investigation Offices in each district, Dissanayake said such offices could be established only with the agreement of CIABOC and that amendments to the Anti-Corruption Act would be necessary.
He also referred to the pledge to abolish the Executive Presidency, noting that successive governments had made similar commitments since 1994. He questioned whether there had been adequate consideration of where the powers vested in the Executive President would be transferred if the system were abolished.
On the proposal to establish a Public Prosecutor, Dissanayake questioned whether the Government intended to maintain the office alongside the Attorney General, who currently performs prosecution-related functions.
Executive Director of the Institute for Democratic Reforms and Electoral Studies (IRES) Manjula Gajanayake said Dissanayake’s remarks should be regarded as his personal views and not as Government policy.
Monitoring and Evaluation Consultants M. Thilakarajah and D.D. Mataharaarachchi presented the third-phase findings, covering January to June 2026.
The corruption case filed by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) against former Navy Commander, Admiral of the Fleet Wasantha Karannagoda, and Yoshitha Rajapaksa was set for a pre-trial conference by the Colombo High Court.
The case was taken up before the Colombo High Court on Thursday (17), when the accused, who are currently out on bail, appeared before the court. After considering the submissions made, the court ordered that the case be called for a pre-trial conference.
The CIABOC had filed the case against the accused, alleging that a corruption offence was committed by sending Yoshitha Rajapaksa, son of former President Mahinda Rajapaksa, for training at the Royal Naval College in the United Kingdom despite him not having the required qualifications.
Advisory for strong winds and rough seas for Multi-day boats in the Bay of Bengal
Showers in the Western, Sabaragamuwa and North-western provinces and in Galle, Matara, Kandy and Nuwara-Eliya Districts
Some NPP manifesto promises may be difficult to fulfil – CIABOC DG
Yoshitha and ex-Navy chief Karannagoda’s case fixed for PTC
Court orders probe into Wimal’s rally speech
Court to rule on Dilith’s writ petition on September 30
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