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Local firms move millions of dollars overseas for phantom imports: Govt.

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Wijepala

… lead on Rs 13.2 bn NDB fraud

A sprawling fraud, involving the transfer of millions of dollars overseas under the guise of payments for non-existent imports, has been uncovered by law enforcement and customs authorities, Public Security Minister Ananda Wijepala told Parliament yesterday.

The Minister said investigations by the Central Crimes Investigation Bureau (CCIB), the Financial Crimes Investigation Division (FCID) and Sri Lanka Customs had revealed that large-scale foreign exchange transfers were being routed abroad through telegraphic transfer (TT) systems for goods that were never imported, contributing to significant dollar outflows from the country.

Wijepala said investigators were now working to identify political figures, state officials and banking sector employees, allegedly linked to the racket, adding that preliminary findings indicated the involvement of individuals across multiple institutional levels.

He told the House that provisions under the Prevention of Money Laundering Act, No. 5 of 2006 had earlier classified foreign exchange offences as predicate offences for money laundering,

but amendments under the Foreign Exchange Act, No. 12 of 2017 had removed such provisions, creating loopholes that were subsequently exploited for illicit capital flight. The government, he said, had now moved to amend the relevant legal framework.

The Minister outlined a series of parallel investigations that, he said, pointed to interconnected money laundering and narcotics-linked financial networks operating through shell companies and bank accounts.

In one major breakthrough, the Kelaniya Crime Division police conducting a random search in Peliyagoda discovered Rs. 30 million hidden in a three-wheeler. Two suspects were arrested and, following further interrogations, six more persons were taken into custody. Acting on initial suspicions of narcotics proceeds, the Inspector General of Police referred the case to the CCIB.

Subsequent investigations revealed that the cash had been intended for deposit into accounts linked to Next Gen (Pvt.) Ltd. The company was found to have transferred approximately Rs. 12,890 million abroad in 953 transactions to 256 companies across 26 countries, purportedly for imports that never materialised. The total outflow was estimated at USD 42.7 million.

Investigators further found that the company was controlled by a single director and shareholder and had no verifiable business activity. Authorities also established that funds linked to a recent Rs. 13 billion fraud, at NDB, had been routed into the same accounts.

Police have since frozen two accounts held at the People’s Bank’s Kolonnawa branch and Sampath Bank’s Wellampitiya branch.

In a separate incident, Negombo police arrested four suspects, on 15 February, 2026, in possession of heroin. Interrogations reportedly revealed that proceeds from narcotics sales were being channelled into a bank account, opened at a Divulapitiya branch of a Commercial Bank, allegedly linked to a Sri Lankan national, operating from Dubai.

According to investigators, the network involved deposits from drug dealers into the Divulapitiya account, with funds subsequently transferred to a Commercial Bank, Pettah branch account, belonging to AY Investments. The account reportedly held Rs. 2.2 billion after being opened on 09 September, 2024.

Authorities said withdrawals were made via cheques every two to three days and re-deposited into another AY Investments account at Union Bank’s Pettah branch. The company maintained four accounts at the branch, collectively holding around Rs. 13 billion.

Between 03 October, 2025, and 04 March, 2026, investigators said approximately USD 43 million had been transferred abroad from these accounts under the pretext of importing hardware, bathroom fittings and gold jewellery, none of which were brought into the country. A further Rs. 53.6 million balance has since been frozen as suspected proceeds of crime.

Investigators have also uncovered a wider pattern in which company directors allegedly establish import-export entities, operate them for short periods of around six months, and then dissolve or replace them with new entities. Customs officials have reportedly identified 105 local companies operating through 227 accounts in 13 banks, with funds transferred abroad in 26,108 instances between 01 January, 2023, and 30 September, 2025, for non-imported goods.

The racket is believed to involve 55 company directors and secretaries who allegedly function as facilitators in setting up and rotating such entities.

Officials noted that under existing procedures, banks are required to inform Sri Lanka Customs and the Central Bank within 180 days of TT transactions related to imports. Where goods are not received, Customs is expected to notify the Import and Export Controller and the Central Bank. However, investigators said these reporting mechanisms had not been properly followed, enabling systemic abuse.

Following the exposure of the racket, President Anura Kumara Dissanayake has summoned heads of relevant institutions for two high-level meetings, directing immediate action and comprehensive investigations.

Minister Wijepala said further inquiries were ongoing and assured that strict legal action would be taken against all perpetrators regardless of rank or position in the coming days.

By Saman Indrajith



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UN Humanitarian Priorities Plan (HPP) for Cyclone Ditwah successfully concluded

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The conclusion of the Humanitarian Priorities Plan (HPP) implemented by the United Nations for those affected by Cyclone Ditwah was marked at a ceremony held in Colombo this morning (11), under the patronage of Commissioner General of Essential Services and Chief of Staff to the President, Prabath Chandrakeerthi, and United Nations Resident Coordinator in Sri Lanka, Marc-André Franche.

Speaking at the event, UN Resident Coordinator Marc-André Franche noted that the humanitarian relief programme launched for those affected by Cyclone Ditwah had been successfully implemented owing to the strong political leadership and the swift response demonstrated in managing the disaster situation.

Commissioner General of Essential Services and Chief of Staff to the President Prabath Chandrakeerthi emphasized that Sri Lanka had demonstrated how strong national leadership and effective partnerships could ensure the delivery of relief to affected communities in a fair and efficient manner during times of crisis. He further stated that the timely and accurate data and assessments provided by the United Nations had played a crucial role in facilitating rapid relief efforts. He also noted that the Government is continuing its efforts to strengthen multi-hazard early warning systems to enhance resilience against future natural disasters of a similar nature and to further expand institutional coordination at national, provincial and local levels.

Expressing appreciation and gratitude for the generous and prompt assistance extended by various countries and partners, the Commissioner General also commended the contribution of all state institutions that helped ensure the uninterrupted provision of essential services and facilitated the swift delivery of relief assistance.

Under the United Nations’ Humanitarian Priorities Plan for Cyclone Ditwah, a fundraising initiative was launched to mobilise US$35.4 million for those affected by the disaster. Of this amount, 75 per cent has already been disbursed as assistance to affected communities across the country. Through the programme, each affected family received an allowance of Rs. 27,000 through Divisional Secretariats, while a range of additional relief measures, including the construction of temporary housing, were also implemented.

The Humanitarian Priorities Plan covered 25 districts and delivered assistance through nine key sectors. Official reports indicate that 87 per cent of the targeted population of more than 650,000 people, equivalent to approximately 575,000 individuals, directly benefited from the programme. This achievement clearly reflects the confidence and support extended by foreign governments and organisations towards the Cyclone Ditwah response programme being implemented by the present Government.

Among those who attended the event were Additional Secretary (Disaster Management) to the Ministry of Defence K. G. Dharmatilake, ambassadors and high commissioners from several countries, representatives of the United Nations Development Programme (UNDP), representatives of the World Health Organization (WHO), representatives of international humanitarian organisations, and a number of local and international dignitaries.

(PMD)

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President chairs discussion on potential El Niño impacts and institutional preparedness

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A discussion to review the potential impacts of the anticipated El Niño phenomenon and the preparedness plans of relevant institutions to address its effects was held this morning (11) at the Presidential Secretariat under the patronage of President Anura Kumara Dissanayake.

The meeting was attended by representatives of the Department of Meteorology, the Department of Irrigation, the Central Environmental Authority, Mahaweli Authority of Sri Lanka, the Disaster Management Centre, Vidulijanana Lanka (Pvt) Ltd and the National System Operator (Pvt) Ltd, among other relevant institutions.

Extensive discussions were held on the possible impact of the anticipated El Niño conditions on the country’s food security, drinking water supply and energy sector, as well as the immediate measures required to effectively manage these sectors.

Particular attention was given to current reservoir water levels and the measures required managing potential pressure on agriculture, drinking water supply and energy generation. Officials also briefed the President on the preparedness plans already in place to mitigate any adverse effects.

Officials noted that the expected El Niño conditions are likely to resemble those experienced during 2016–2017. They further stated that water management plans have been formulated accordingly and that steps have already been taken to commence the 2026 Yala season approximately one and a half months earlier than usual.

Special attention was also focused on ensuring an uninterrupted electricity supply over the upcoming months, maintaining agricultural activities and safeguarding food security. The President instructed relevant officials to prepare and submit detailed plans to ensure adequate electricity generation, the provision of water required for the forthcoming cultivation season and the protection of drinking water resources.

President Dissanayake observed that, just as Sri Lanka had successfully managed challenges arising from Cyclone Ditwah and the conflict situation in the Middle East, the country possesses the capacity to effectively address this global challenge as well. The President expressed confidence that with proper planning and timely implementation, Sri Lanka would be well positioned to respond to any eventuality.

Among those present were Secretary to the President Dr. Nandika Sanath Kumanayake, Senior Additional Secretary to the President Kapila Janaka Bandara, Director General of the Department of Meteorology A. L. K. Wijemannage, Director General of the Department of Irrigation Kithsiri Weligopolage, Director General of the Mahaweli Authority of Sri Lanka H. M. K. K. Herath, Chairman of the Central Environmental Authority Professor Tilak Hewawasam, Acting Director General of the Disaster Management Centre Brigadier D. D. G. A. Jayawardena and several senior officials representing the relevant institutions.

 (PMD)

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New Sasakawa Memorial Sri Lanka–Japan Cultural Centre reflects enduring friendship between Sri Lanka and Japan – PM

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Prime Minister Dr. Harini Amarasuriya participated at the ceremonial opening of the new Sasakawa Memorial Sri Lanka–Japan Cultural Centre today [11th of June 2026].

The cultural centre, commissioned by the Sasakawa Memorial Sri Lanka–Japan Cultural Centre Trust and situated at No. 85, Ward Place, Colombo 07, is a landmark development designed to promote cultural exchange, education, professional training and bilateral cooperation between Sri Lanka and Japan.

The New Sasakawa Centre was ceremonially opened  by the Ambassador of Japan to Sri Lanka Akio ISOMATA, Minister of Fisheries, Aquatic and Ocean Resources, Ramalingam Chandrasekar, Minister of Buddhasasana, Religious and Cultural Affairs, Hiniduma Sunil Senevi, Yohei SASAKAWA,  Chairman of The Nippon Foundation, Japan, Premalal Fernando, Chairman, Sasakawa Centre Trust. The Prime Minister unveiled the inaugural plaque.

Following the occasion Memorandum of Understanding was signed between the Ministry of Defence and Sasakawa Peace Foundation in the presence of Prime Minister Dr. Harini Amarasuriya and  Yohei SASAKAWA, Honorary Chairman.

Addressing the occasion, Prime Minister Dr. Harini Amarasuriya stated, that the friendship between Sri Lanka and Japan is enriched by a long history of cultural and spiritual connections and that the societies are connected through a deep appreciation of nature, culture, learning, and community.

Highlighting the longstanding contribution of the Sasakawa Centre, the Prime Minister stated that it has played an invaluable role in promoting Japanese language education and strengthening mutual understanding between the people of Sri Lanka and Japan. She expressed confidence that the new Centre would emerge as a dynamic platform for cultural exchange, educational cooperation, and meaningful people-to-people engagement.

The Prime Minister stated that, at a time of increasing global uncertainty, partnerships based on mutual respect, shared values, and a commitment to peace are more important than ever. She reaffirmed that Sri Lanka and Japan remain committed to dialogue, international cooperation, and s rules-based international order that promotes peace, prosperity, and human dignity.

The occasion was attended by the Ambassador of Japan to Sri Lanka  Akio ISOMATA, Minister of Fisheries, Aquatic and Ocean Resources, Ramalingam Chandrasekar, Minister of Buddhasasana, Religious and Cultural Affairs, Hiniduma Sunil Senevi, Yohei SASAKAWA, Chairman, The Nippon Foundation, Japan, Premalal Fernando, Chairman, Sasakawa Centre Trust and Diplomatic core, distinguished guests.

[Prime Minister’s Media Division]

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