Business

SL in damage-control mode in wake of financial security crisis

Published

5 months ago

2026/05/12

Deputy Finance Minister Dr. Anil Jayantha Fernando

USD 2.5 million Treasury cyber heist has escalated into a full-blown financial security crisis, with the government scrambling to contain international fallout amid growing fears that multiple foreign debt repayment channels may have been compromised.

In the strongest indication yet of the gravity of the breach, Deputy Finance Minister Dr. Anil Jayantha Fernando told Parliament that investigators had uncovered suspicious irregularities linked to other external payment transactions, including one involving India, suggesting that the cyber intrusion may have extended far beyond the original fraudulent transfer.

The revelation has sent shockwaves through financial and political circles at a time when Sri Lanka is struggling to restore credibility after its historic sovereign default and painful debt restructuring process.

The controversial transfer involved funds earmarked for a debt repayment to Australia Export Finance. However, the money was allegedly diverted into a fraudulent account after what authorities now believe was a sophisticated cyber infiltration targeting Treasury communication and payment authentication systems within the External Resources Department (ERD).

With international confidence hanging in the balance, the Government has moved swiftly to reassure creditors that the incident would not be treated as a sovereign debt default.

Fernando informed Parliament that international debt restructuring advisors had assessed the situation and concluded that the theft constituted a criminal financial breach rather than a deliberate failure by Sri Lanka to honour debt obligations.

Behind the scenes, however, the crisis has triggered an unprecedented multi-agency investigation involving the Criminal Investigation Department (CID), Sri Lanka Computer Emergency Readiness Team (SLCERT), Financial Intelligence Unit (FIU) and foreign law enforcement authorities, including Australian agencies.

Investigators are now carrying out forensic examinations of official email systems, payment authorisation trails, digital devices and Treasury transaction records amid mounting concerns that critical State financial infrastructure may have been exposed to external manipulation.

The scandal has also intensified political tensions, with opposition parties accusing the Government of attempting to downplay the seriousness of the breach while demanding an immediate parliamentary debate and an independent inquiry into Treasury security failures.

Pressure mounted further following the sudden death of an interdicted Finance Ministry official reportedly connected to the ongoing investigation.

Although authorities have not officially linked the death to the fraud probe, the incident has fuelled widespread speculation and heightened public suspicion surrounding the case.

The latest disclosures have raised troubling questions about the vulnerability of Sri Lanka’s public financial systems, particularly as billions of dollars in foreign debt repayments, aid flows and restructuring transactions continue to pass through Government channels under intense international scrutiny.

Financial analysts warn that while creditors may refrain from categorising the incident as a formal default, the cyber heist could still damage Sri Lanka’s credibility unless authorities demonstrate swift accountability, institutional transparency and robust corrective measures.

The Treasury breach is now being viewed not merely as an isolated fraud, but as a major national financial security threat with potentially far-reaching implications for Sri Lanka’s economic recovery and global standing.

By Ifham Nizam

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Business

Financial literacy central to country’s development – CBSL Governor

Published

2 hours ago

2026/10/13

Sahan Weerasooriya

Dr. Nandalal Weerasinghe: ‘Financial literacy vital’.

By Hiran H. Senewiratne

Sri Lanka’s financial literacy rate is approximately 58 percent. Such literacy is absolutely necessary for the inclusion of people in the country’s financial system which in turn is central to overall economic development, Central Bank Governor Dr. Nandalal Weerasinghe said.

‘One needs to have knowledge and skills of a financial nature to figure in financial inclusiveness. While 86 percent of Sri Lanka’s population has access to the country’s financial system, 82 percent of the public has at least a savings account in the country’s banking system, Dr Weerasinghe said.

The Governor made these comments recently at the inauguration of Financial Literacy Month 2026 at the Central Bank’s Centre for Banking Studies, Rajagiriya.

Dr. Weerasinghe added: ‘Suitable, affordable and quality financial instruments are needed to enhance financial literacy in the country.

‘Financial information has to be accurate, risk-free and accountable, thus creating confidentiality in the financial system, which would enable the sector to reach greater heights’.

Meanwhile CBSL sources said: ‘The Literacy Month opened with the two-day ‘FinLit Expo Colombo’. The expo gives the public the opportunity to engage with institutions, better understand financial services, gain practical insights into managing their finances and learn how to protect themselves from financial fraud and scams.

‘The CBSL is leading the program in collaboration with stakeholder institutions. It forms part of the Financial Literacy Roadmap for Sri Lanka, which is implemented under the National Financial Inclusion Strategy (NFIS), the national framework for widening access to and use of formal financial services.

‘The Colombo event will be followed by six regional ‘FinLit Expos’ aimed at direct engagement with local communities. Partner institutions will also run awareness activities. Together, the events are intended to provide financial education to communities and encourage people to apply financial knowledge in everyday life.

‘A public awareness campaign on television, radio, newspapers and social media will extend the program’s reach. The program also includes digital financial literacy activities and the promotion of QR codes and other online payment methods.

‘The public and stakeholder institutions are encouraged to take part in the month’s activities under the theme, “Towards a Financially Literate Sri Lanka”.

Business

HUTCH strikes five awards as the only telco honoured at SLIM DIGIS 2.6

Published

2 hours ago

2026/10/13

Sahan Weerasooriya

HUTCH Sri Lanka strengthened its position as a leader in digital engagement by securing five accolades at SLIM Digis 2.6, emerging as one of the most recognized brands at this year’s digital excellence awards. The achievement was further highlighted by HUTCH being the only telecom operator to be recognized at the event.

Organized by the Sri Lanka Institute of Marketing (SLIM), SLIM Digis is Sri Lanka’s premier platform celebrating excellence, innovation, and outstanding achievements in the digital marketing industry. The recognition highlights HUTCH’s growing strength in digital-first, agile, and creative marketing, and its ability to respond to everyday moments, engage audiences, and deliver impactful digital campaigns.

The Gold Award for Best Use of Agile and Moment Marketing, a Silver for Best Use of Digital in a Marketing Campaign, and a Bronze for Best Performance Marketing were all awarded for “Keeping Sri Lanka Connected Through Ditwah,” HUTCH’s response to the cyclone that struck Sri Lanka in November 2025, recognised for the speed and relevance with which HUTCH kept customers better connected and informed.

HUTCH Roaming also earned two further Bronze awards for Best Use of Digital in a Marketing Campaign and Best Use of Creative Content. Bringing together AI-led storytelling, the campaign was designed around distinct customer clusters, each characterized by unique travel behaviours, needs, and perceptions, delivering relevant content for different audiences within a single overarching campaign.

“These wins are a strong reflection of how HUTCH approaches marketing today, staying close to the moments that matter to our customers and responding with speed, relevance, and creativity. Being the only telco recognised at SLIM DIGIS 2.6, and across five categories, is proof that agility and thoughtful storytelling can go hand in hand. This recognition reflects the collective efforts with our strategic partners, whose collaboration, expertise, and shared commitment brought great campaigns to life,” said Hamdhy Hassen, Chief Marketing Officer, HUTCH Sri Lanka.

Business

Fairway Colombo named Official Accommodation Partner of Manhunt International 2026

Published

2 hours ago

2026/10/13

Sahan Weerasooriya

(L-R): Gamunu Cooray, Ms. Tharushi Kulathunga, Avinga Wanigasekara, Arjuna Senanayake, and Jagath De Almeda at the signing ceremony held at Fairway Colombo.

Sri Lanka’s Smart Luxury Business Hotel to Host Delegates and Contestants from Over 40 Countries as the Island Nation Hosts Its First-Ever Global Pageant of This Scale

Fairway Colombo, a subsidiary of Fairway Holdings (Pvt) Ltd, has been appointed as the Official Accommodation Partner for Manhunt International 2026, one of the world’s most prestigious male pageants, scheduled to take place in Sri Lanka.

The event marks a historic milestone for Sri Lanka, as the country prepares to host a global pageant of this scale for the very first time. More than 40 contestants representing countries from across the world will arrive in Colombo, bringing together diverse cultures, international media attention, and a global audience — further strengthening Sri Lanka’s position as a premier destination for tourism, culture, and hospitality.

As the official accommodation partner, Fairway Colombo will welcome and host international delegates and contestants throughout their stay in Colombo, delivering the exceptional hospitality experience and personalized service that the hotel is recognized for.

A Landmark Partnership for Sri Lankan Tourism

“We are truly honored to be selected as the Official Accommodation Partner for Manhunt International 2026. This partnership is a proud moment not only for Fairway Colombo but also for Sri Lanka as a whole. Hosting an event of this global stature provides us with an opportunity to showcase our commitment to smart luxury, innovation, and authentic Sri Lankan hospitality to an international audience. We look forward to creating a memorable and seamless experience for all delegates and guests,” said Avinga Wanigasekara, General Manager of Fairway Colombo.

Strategically located in the heart of Colombo’s historic Fort district, Fairway Colombo is recognized as a Smart Luxury Business Hotel, combining modern comfort, advanced technology, and exceptional service. As part of Fairway Holdings (Pvt) Ltd, the property represents the group’s vision of delivering innovative, world-class experiences across the hospitality and leisure sectors.