Features
High stakes and hidden hands: Navigating the maze of electronic financial fraud
Electronic or digital financial fraud is the current, extremely distasteful description of a blight that has hit the entire globe; a menace that is perpetrated through an unbelievable labyrinth of interconnected dishonourable and nasty manoeuvres. In an era where our financial lives are increasingly becoming digital, the “perfect financial crime” no longer requires a getaway car. It just needs a high-speed internet connection and stupendously brilliant, depraved and Machiavellian minds.
Modern scams have advanced far beyond the poorly spelt emails of the past. They are now extremely sophisticated operations exploiting psychological manipulation and deep-fake technology. Financial fraud has evolved from simple street-level deception into a complex, multi-billion-dollar industry. It has been manipulated through many different currencies in different parts of the world. In Sri Lanka, the landscape of scams has shifted from traditional “pyramid” schemes to sophisticated digital heists and institutional bond scandals that threaten the very fabric of our national economy. From an international outlook, financial fraud is becoming increasingly transnational. Sri Lanka is currently under intense scrutiny by the FATF (Financial Action Task Force). Sri Lanka falling onto the “Grey List” again would have severe repercussions, potentially causing international banks to suspend payments to the island, severely upsetting our exporters.
The financial fraud profile of Sri Lanka has gone from “Bonds” to “Glitches”. Our country has been rocked by high-profile financial irregularities that serve as a stark warning about institutional integrity. First was the Treasury Bond Scandal. Often cited as the largest financial scam in the nation’s history, the Central Bank bond issuance of 2015 highlighted the risks of Insider Trading and the manipulation of government securities. The fallout cost the public billions of rupees, demonstrating how high-level collusion can bypass traditional safeguards.
The recent problem where the Treasury remitted a very large amount of foreign currency to a different portal to which money should not have been sent is a special type of Financial Fraud problem that seems to have been instigated by a deceptive email. It is under investigation at present, and it appears that it is the money that had been earmarked for foreign debt reconciliation. It is the taxpayers’ money that has been allowed to be swindled by unscrupulous crooks.
Then there is the National Development Bank (NDB) “Glitch” Controversy.
The entire banking sector was shaken to its roots by reports of a massive multi-billion-rupee fraud at the NDB. This incident, often referred to in local circles as “The Glitch,” involved the alleged diversion of funds through a sophisticated manipulation of the bank’s internal accounting systems.
Then there are the perceived Guardians, who often serve as Whistleblowers. The fight against such deep-seated corruption rarely begins with a regulator; it often starts with an individual. It is just someone who smells a rat. Maya Senanayake, a forensic expert at NDB, has emerged as a symbol of integrity in this landscape by identifying anomalies that others chose to ignore. Whistleblowers like Senanayake face immense personal and professional risks. Their role is a “Herculean effort”, very often battling institutional stonewalling to bring the truth to light. Without such individuals, “Suspense Account” spikes and “shell-company diversions” would remain invisible to the public eye.
Having mentioned just two of the buzz phrases in circulation, given in Italics above, it is pertinent to provide definitions for some of these phrases that are being bandied about very frequently in articles on the main subject of this article.
· SCAM – It is a fraudulent scheme or deceptive act performed by an individual or group to trick a victim into giving up something of value, typically money, personal information, or assets. It is a blatant lie or a misrepresentation of the truth. Unlike theft (where something is taken by force), a scam usually involves the victim “willingly” handing over assets because they believe the fraudster’s story. Scams often rely on psychological manipulation, such as creating a sense of urgency, fear, or the promise of a “too good to be true” reward.
· HACKERS –
The term has evolved significantly and carries different meanings depending on the context. In the broadest sense, a hacker is someone who uses technical skills to overcome a problem or bypass a system’s limitations. The cybersecurity industry generally classifies hackers by their intent, often using a “hat” colour system.
The White Hat Hackers are an ethical group that is hired to detect vulnerabilities. They are legal and helpful as they improve security by reporting bugs.
The Black Hat Group are cybercriminals who break into systems illegally. They are malicious, steal data, plant malware, or disrupt services.
The Grey Hats Individuals who may break laws to access a system, but without malicious intent. They are individuals who might find a bug without permission and then offer to fix it for a fee.
· MONEY LAUNDERING – It is the process of “cleaning” illicitly-earned money by passing it through complex bank transfers or commercial transactions.
· TREASURY BOND –
A government debt security that provides a fixed interest rate. Manipulating these affects the nation’s debt and interest rates.
· WHISTLEBLOWER –
It is an “insider” who reports and even makes public, concealment of illegal or unethical activities within an organisation to the public or relevant authorities.
· SUSPENSE ACCOUNT –
A temporary account used to hold funds while their final destination is determined. These are frequently used in fraud to “hide” money during transfers.
· SHELL COMPANY –
No., NO…, it is not the Shell Company that deals with fuel. This terminology refers to a company that exists only on paper and has no active business operations. It is very frequently used to obscure the identity of those moving money. They become “Ghosts”.
· FORENSIC AUDIT –
An examination of financial records to find evidence that can be used in a court of law or for legal proceedings.
When one examines some of these frauds and scams, it becomes clear that at the bottom of the distasteful occurrences lie systemic inadequacies. Scrupulous attention to all details of financial transactions, trustworthy and fool-proof systems dealing with financial transactions, utmost vigilance and a very high degree of suspicion are the incontrovertible needs of the hour. The powers-that-be in all things that deal with financial transactions must consist of people with unblemished honesty, unbridled integrity and honour.
International best practices now emphasise a shift from “rules-based” to “risk-based” oversight, even going to the extent of utilising Artificial Intelligence (AI) to detect suspicious patterns in money laundering and financial fraud that a human eye might miss.
For individuals and the general public, the Three Golden Rules for Protection are as follows”
· Demand Transparency:
Whether you are an investor or a depositor, always ask for the audited financial statements of the institution.
· Verify the Chain:
In government securities, ensure you are dealing through registered primary dealers.
· Support Protections:
Advocate for stronger Whistleblower Protection Acts to ensure that those who speak the truth are not penalised by the system they seek to save.
The trick is to protect ourselves from the Invisible Thief by protecting ourselves from Modern Scams. Here is a breakdown of the most prevalent threats today and how to safeguard your assets.
A. The “Urgent Authority” Tactic
Scammers often impersonate trusted institutions such as banks, financial institutions, tax offices, or law enforcement. They create a sense of artificial urgency, claiming your account has been compromised or you owe an immediate fine.
· The Red Flag: Any request to move money to a “safe account” or pay via untraceable methods like gift cards or cryptocurrency.
· The Defence:
Hang up immediately or delete the message if it is on email. Contact the institution using a verified phone number from their official website or the back of your bank card to check the veracity of the request.
B. Investment and “Get Rich Quick” Schemes
With the rise of digital assets, “pig butchering” scams have become rampant. Fraudsters build a relationship with the victim over weeks (the “fattening”) before suggesting a “guaranteed” investment opportunity in crypto or forex (the “slaughter”).
· The Red Flag: Returns that consistently outperform the market with “zero risk.”
· The Defence:
If an investment opportunity sounds “too good to be true”, it almost always is. Professional financial advisors do not solicit clients via WhatsApp or dating apps.
C. Phishing and Smishing (SMS Phishing)
These are deceptive messages designed to steal login credentials. You might receive a text stating a package delivery failed, or your Netflix subscription has lapsed, followed by a link to a “login” page that looks identical to the real thing.
· The Red Flag: Unusual URLs (e.g., wellsfarg0.net instead of wellsfargo.com) and unexpected attachments.
· The Defence:
Never click links in unsolicited messages. Use Multi-Factor Authentication (MFA) on all sensitive accounts; even if a thief gets your password, they won’t get the secondary code.
4. The AI Impersonation (The Grandparent Scam)
Advancements in AI voice cloning allow scammers to mimic the voice of a loved one in distress. They may call claiming to be in a car accident or legal trouble, begging for immediate funds.
· The Red Flag: High emotional pressure and a demand for secrecy.
· The Defence:
Establish a “family password” – a unique word or phrase only your inner circle knows. If the caller cannot provide it, they are not who they say they are.
The Three Golden Rules for Financial Safety are
· Slow Down and Do Not Get Frightened:
Scammers rely on panic. Taking five minutes to think or consult a friend usually breaks the spell of the scam. It is also important to realise that some scammers try repeatedly.
· Verify the Source:
Never trust Caller ID, as numbers can be easily “spoofed” to look local or official.
· Protect Your Data:
Be wary of how much personal information you share on social media. Scammers use these details to make their impersonations more convincing.
Your bank will NEVER EVER ask for your Personal Identification Number (PIN), your Account Password, One-Time-Password (OTP) or request you to transfer money to an entirely new, unknown account. If any such request comes, do not fall for it and immediately contact the institution through their standard publicised telephone lines to check on the veracity of the request.
If you suspect you have been targeted, report it to the bank or financial institution, your local authorities and the legal investigative portals…, IMMEDIATELY.
(Some of the material presented
in this article was extracted with the help of AI.)
by Dr B. J. C. Perera
MBBS(Cey), DCH(Cey), DCH(Eng), MD(Paediatrics), MRCP(UK), FRCP(Edin), FRCP(Lond), FRCPCH(UK), FSLCPaed, FCCP, Hony. FRCPCH(UK), Hony. FCGP(SL)
Specialist Consultant Paediatrician and Honorary Senior Fellow, Postgraduate Institute of Medicine, University of Colombo, Sri Lanka.
An independent free-lance correspondent.
Features
Justice and democracy in Sri Lanka’s new political era
The legal processes are steadily closing in on some of the most controversial cases that have remained as open questions without closure for many years. These include the Easter Sunday bombings of 2019, the Treasury bond scam that erupted in 2015, and a range of corruption allegations that became synonymous with successive governments over the past two or more decades. What once appeared to be stalled investigations are now showing signs of movement through the courts and investigative agencies. Recent developments suggest that these long running cases are entering a decisive phase. In the Easter Sunday attacks investigation, new arrests and investigations have brought renewed attention to allegations that extend beyond the immediate perpetrators and into questions of intelligence failures and possible political complicity. The arrest and detention of former intelligence chief Suresh Sallay under the Prevention of Terrorism Act has intensified public interest in uncovering the full truth behind the attacks.
The Treasury bond scam has also re-entered the spotlight. The Supreme Court has recently overturned legal obstacles that had prevented prosecutions from proceeding and directed that the case moves forward expeditiously. This has reopened one of the most sophisticated financial scandals in the country’s recent history and brought several prominent political and financial figures back under legal scrutiny. As those implicated in these unresolved cases are leading figures from previous governments, which have spanned both sides of the political divide since Independence, it can well be imagined that there is tremendous opposition to the gradually enveloping legal processes that is both seen and unseen.
These cases that are now being investigated cut across political camps and involve individuals who occupied some of the highest offices in the country. The result is that resistance to accountability is likely to emerge from many quarters. Still to be opened are the thousands of cases of persons gone missing during the war. Presidential Commissions have been appointed with regard to them, but there has been no serious investigations of the type now taking place.
In these circumstances, it can be surmised that the government led by those who are new to power would wish to retain a maximum of power to face the pushback that is bound to emerge from those in the opposition who have wielded power for generations. The government may calculate that this is not the time to disperse authority or reduce the instruments of state power available to it. Instead, it may believe that a period of centralised control is necessary if investigations, prosecutions and reforms are to proceed without interference.
Provincial Elections
It appears that the opposition’s efforts to mobilise the people and public opinion against the government have not been successful so far. One such instance was the attempt to generate opposition to price increases. Although people have undoubtedly been affected by rising prices and economic difficulties, these efforts failed to gather significant momentum. Another attempt came when President Dissanayake predicted that opposition politicians would face imprisonment in the month of May as legal cases progressed, though this has not happened. Critics claimed that such remarks suggested an intention to influence judicial outcomes. Yet this criticism also failed to gain traction among the public. The likely reason is that public memory remains fresh. Many people continue to associate previous governments with economic mismanagement, corruption scandals, abuse of power and the eventual economic collapse. In comparison, the present government continues to enjoy a reservoir of public goodwill and credibility. As long as legal action appears to be based on evidence and proper process, the public seems prepared to give the government the benefit of the doubt.
The government’s deliberate and cautious approach to political reform that would reduce its centralised power needs to be seen in this context. The monthly approval by Parliament of the emergency regulations is justified by the government as due to the continuing need to respond to the devastation caused by Cyclone Ditwah. However, when viewed together with the reluctance to hold provincial council elections on the grounds of electoral reform, the failure to repeal the Prevention of Terrorism Act and the postponement of constitutional reform, they all appear to reflect a preference for retaining maximum control at a politically sensitive moment. There is a logic to this approach. Governments facing major legal and political confrontations often seek stability and control. So does every despot. However, there is also a downside.
When political competition is denied to legitimate outlets, it often finds expression in confrontation, obstruction and polarisation. The advantage of prioritising the conduct of provincial council elections at this time is that it could reduce the political pressures that are building up. The main opposition parties are united in calling for these elections to be held. Conducting them would provide an opportunity for opposition political parties to obtain a measure of democratic representation and political authority at the provincial level. This would be especially true in the northern and eastern provinces, in which the ethnic and religious minorities predominate. It cannot be forgotten that the provincial council system was developed as a constructive response to the ethnic conflict. Elections at the provincial level would create opportunities for a new generation of political leaders to emerge through democratic competition rather than patronage. Many of those now facing legal scrutiny belong to an older generation to whose needs the younger may be less deferential.
Two Pillars
Another reform that could command bipartisan support is the repeal of the Prevention of Terrorism Act. The PTA has once again become controversial because it is being used in situations that extend beyond its original purpose. The detention of former intelligence chief Suresh Sallay under the Act, the continued incarceration of some Tamil detainees from the war period, and the arrest of individuals accused of speech related offences have all revived concerns regarding prolonged detention without trial and excessive executive power. The reason the PTA has been difficult to repeal is that it is closely associated with concerns regarding national security and territorial integrity. Introduced in 1979 as a temporary measure to confront the emerging separatist conflict, it survived through decades of war and has remained on the statute books long after the conflict ended.
At the same time, history shows that extraordinary powers are likely to be misused. Laws that permit detention without trial or broad executive discretion are rarely confined to their original purpose. Governments of different political parties have used such powers against opponents and critics. The temptation to do so is inherent in the possession of unchecked authority. The way forward could therefore be a combination of accountability and reform. The government should continue to support independent investigations and prosecutions in major corruption and security related cases. Demonstrating political will in this regard would strengthen public confidence in the rule of law and reinforce the principle that no individual is above the law. The PTA could be replaced with legislation that amends the Criminal Procedure Code and Penal Code in a manner that addresses legitimate security concerns while complying with democratic norms and human rights standards.
There are also international dimensions to consider. The European Union has repeatedly linked governance and human rights reforms, including reform of the PTA, to Sri Lanka’s continuing access to the GSP Plus trade concession. Progress on these issues would strengthen Sri Lanka’s international standing at a time when economic recovery remains a national priority. The government has a rare opportunity. It possesses a strong electoral mandate, public goodwill and a reputation for integrity that previous governments lacked. It can combine the pursuit of justice in long delayed cases with meaningful democratic reforms that reduce political resistance and broaden public support. At this time, accountability and power sharing are the two pillars which Sri Lankans need to be committed to build a just and democratic society for a better future without delay. Failure now would make for a long period of waiting for the next time.
by Jehan Perera
Features
Pitfalls and exclusions in academic recruitment
A public university relies on its teachers in fulfilling its responsibilities to the wider community. While teaching remains the chief responsibility of the academic staff, they also conduct research and play a central role in keeping the university a vibrant space where they and students can freely participate in conversations that concern not just routine classroom education but also society at large. The broader intellectual culture and intellectual integrity of a university thus depend on how its academics perform their functions. Therefore, universities should take the task of recruiting their academics seriously. It is important to ensure that this task is done responsibly, transparently and credibly through a fair, thorough and multi-phased evaluation process.
As both an applicant and a member of selection panels for recruitment, I hold that the recruitment procedures, currently in place in our university system, require radical reforms. Echoing some of the concerns raised by Kaushalya Perera in her Kuppi article on recruitment in March 2026, I focus on the limitations I have observed and experienced, specifically in the recruitment of Lecturer (Probationary) and Senior Lecturer positions. The article also aims to explore how these shortcomings could be addressed.
The Advertisement
Recruitment for Lecturer (Probationary) and Senior Lecturer positions is done through an open-advertisement which also involves an interview with shortlisted candidates. Advertisements are finalised in line with a template issued by the Registrar’s Office. Generally, an initial draft, prepared by the Registrar’s Office, is sent to the relevant academic departments for revisions. The revisions have to be made within the template provided, which allows space for the mention of only specialisation requirements.
It should be noted that not all revisions to the advertisement, suggested by the Department Head, are accepted in the next round. Deans, Vice Chancellors and Registrars, who have very little understanding of the disciplines associated with the position, sometimes reject the changes proposed by the Department. Technocratic in their thinking, they don’t recognise that an academic programme can be taught by persons with specialisation in another overlapping discipline. For instance, a position in English, at a university in Sri Lanka, is very well suited to not just those who have postgraduate qualifications in literary studies but also those who are from the disciplines of Applied Linguistics, Cultural Studies or Translation Studies, as these areas are taught as sub-fields of English studies at most universities in the country. These disciplinary overlaps, even when pointed out by Heads, are often overlooked by our administrators.
In place of this process, dominated by academic administrators and registrars, the advertisement should ideally emerge, from the relevant department, in the form of a comprehensive job description. It should mention the nature of the position advertised, the kind of teaching (and research) expected, how the position relates to other positions in the department, in terms of specialisation and workload, and the ways in which the recruited candidate would contribute to overall institutional development.
There can be no one-size-fits-all model when it comes to recruitment. Individual departments vary in size, strength and specialisation requirements. Departments with sizable academic staff may want to emphasise specialisation during recruitment, whereas smaller departments may prefer generalists who can handle a wide-array of courses. Specifying the rationale for the requirements included in the job description may help potential applicants get an understanding of the position advertised and the selection panel to conduct the evaluation process in a fair manner.
Review of Applications
Once applications are received, we sometimes find promising candidates but with qualifications that don’t carry in their title the name of the discipline or the department in which the position is advertised. Sometimes the disciplines or fields of specialisation that appear in the advertisement and the ones that appear in the qualifications are not identical in nomenclature, even though the research undertaken by the applicant during their graduate studies is strongly relevant to the position advertised. Even when such applications are accompanied by strong and relevant publications, our system does not view them positively. Instead, nomenclatural differences are used to reject promising candidates. Such differences are also used as a pretext when universities want to exclude a candidate for their cultural background, political beliefs or other reasons. Even if academic departments recognise such applications, at the next stage, the administrators of the university try to veto them. We lose inter-disciplinary scholars of high academic standing because of the high-handedness of university administrators.
Selection Panels
Selection panels for academic positions typically comprise the Vice Chancellor, the Dean of the Faculty, the Head of the Department, two academics nominated by the Senate and two members of the University Council. In the case of programmes/disciplines jointly housed under a single department, if the Head comes from a discipline other than the one in which the position is advertised, they may not be able to contribute in an informed manner to the recruitment process. However, some Heads refuse to appoint nominees from the relevant discipline in their place as they view sitting on selection panels as their exclusive privilege.
Sometimes university Senates do not take the appointment of Senate nominees seriously. These appointments are decided in a hurry without serious deliberations at senate meetings packed with numerous agenda items. Sometimes even if the relevant department has suitable academics to serve as Senate nominees, the Senate chooses academics from other departments or disciplines who do not have a nuanced understanding of the requirements of the position advertised and its disciplinary parameters. Sometimes specialists in the relevant discipline may not be available at a university. On such occasions, Senates tend to fill up the positions with academics from other disciplines, instead of inviting external nominees from other universities. At a state university in Sri Lanka, I was interviewed thrice for academic positions by selection panels that comprised not even one specialist from the relevant discipline.
The Marking Scheme
The marking schemes used in recruitment have their own drawbacks. Publications are sometimes evaluated for their quantity rather than quality. The opinion of the subject specialist is not sought or taken seriously when a candidate’s research is evaluated. This is why our universities are saddled with academics who engage in plagiarism or predatory publishing. The evaluation process should be tightened in such a way to bar the entry of those who lack academic integrity.
It is worrying to see that marking schemes and schemes of recruitment penalise applicants who have excelled in their graduate studies and are well-reputed for their recent research and publications just because they did not earn a first-class or second-class upper-division pass at the undergraduate level. Our narrow focus on a candidate’s first degree prevents us from giving due recognition to how that person has gained intellectual depth over the years. Some marking rubrics, which allocate points for eye-contact and posture during the interview, dilute the seriousness associated with the academic position, de-prioritise scholarship and turn the interview process into a stage performance.
Cultural Credibility
In recruitment, many universities look for cultural credibility (a term that I borrow from the work of Sulaxana Hippisley) as an unwritten requirement. Some departments are reluctant to hire applicants who are not their alumni. Some selection panels discriminate against candidates from certain ethnic or religious backgrounds. In some departments, women are rejected because they are likely to go on maternity leave or have more domestic responsibilities than men. Gender and sexual minorities have to mute and censor their identities at interviews because they are likely to face rejection if they openly declare their orientation. We have no policies and procedures in place to ensure recruitment is conducted in an inclusive way that sees diversity as a strength.
The Way-forward
When recruitment fails, the entire intellectual culture of that university takes a hit, and several generations of students are affected. Some of the current problems, related to quality in our higher education system, stem from bad recruitment policies and practices. Instead of trying to address these issues through rigorous and inclusive recruitment practices, we try to seek solutions via band-aids like quality assurance and workshops on curriculum writing and pedagogy for university academics.
In developing alternative recruitment policies and practices, we have to demand that the needs and expectations of individual departments are heard. Our selection panels should include more subject specialists than administrators and council nominees. Most of the evaluation should be completed before the interviews, and interviews should be treated as opportunities to get to know candidates in person and pose clarifying questions rather than as occasions for full-scale evaluation. We have to be open and receptive to new, inter-disciplinary scholarship and cultural, ethnic and gender diversity. If we are unwilling to introspect and bring about these reforms and revise our marking schemes, we will continue to recruit the wrong candidates and thereby fail our students and the wider community.
Mahendran Thiruvarangan is a Senior Lecturer attached to the Department of Linguistics & English at the University of Jaffna.
(Kuppi is a politics and pedagogy happening on the margins of the lecture hall that parodies, subverts, and simultaneously reaffirms social hierarchies.)
by Mahendran Thiruvarangan
Features
Rocking scene … in Japan
Chitral ‘Chity’ Somapala, now based in Sweden, has been active in the music scene for many years, and is known for his hard rock work with European bands like Firewind, Power Quest, and Avalon.
In Sri Lanka, he’s a household name and that’s the reason why he checks out the local scene, on a regular basis, keeping rock music lovers in the groove.
His shows are invariably ‘full house’’ events.
Sri Lanka’s rock star is now ready to do the needful … in Japan, and rock fans in that part of the world are already gearing themselves up for a rock explosion, with Chitral in the spotlight.
The show is scheduled for 03rd October, 2026, at the Hattori Ryokuchi Park, in Osaka, with Wayo.
The blast off is from 1.00 pm onwards.
However, before he checks out the Osaka scene, Chitral has another important date in his itinerary – a spectacular Sri Lankan musical extravaganza at the Sydney Opera House, in Australia.
The concert is titled Rhythms of Sri Lanka and will be held on 23rd August, 2026.

Back in Colombo soon to oblige local rock fans
Although Chitral Somapala is, indeed, a big name, as a rock artiste, he also revives the music of his parents, as well, often performing their music, along with his own songs, at live programmes.
In fact, the album ‘Dambulugale’, released in 2018, which is a tribute to his parents, famous Sri Lankan musicians P. L. A. Somapala and Chitra Somapala, turned out to be a massive hit, not only in Sri Lanka, but with Sri Lankans the world over.
The album, a compilation of various cover songs, previously written and performed by his parents, was dedicated to Chitral’s parents, and released on the 70th anniversary of Sri Lanka’s independence.
He also dropped ‘Chitral Somapala Live In Concert’, in 2023, with 22 tracks, and has several other releases to his credit.
Besides his rocking career, Chitral was asked by veteran film directors Chandran Rutnam, Asoka Handagama, Priyantha Colombage, Udayakantha and Shameera Naotunna to contribute his talent for their soundtracks, and he won a Presidential award and an International award for the movie ‘Let Her Cry’ by Asoka Handagama.
Chitral will be back in Colombo soon with another rocker for his fans, so watch out for Rock Meets Reggae.
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