Sri Lanka should mainly focus on upgrading its trade and investment facilitation system while identifying the paramount importance of the issue, South Korean Ambassador to Sri Lanka Miyon Lee said.

The bureaucratic matters—from Customs clearance to tariff lines, licensing, and registration—should be streamlined, she said at a round table forum recently held at the Colombo Club of the Taj Samudra, Colombo. The forum was organized and conducted by the Pathfinder Foundation Sri Lanka and was presided over by its Chairman, Ambassador (Retd) Bernard Goonetilleke.

Ambassador Lee said that the Sri Lankan government and companies must focus on tourism sector development and also find businesses opportunities with Korea.

She also said that if Sri Lanka wants to attract Korean investment into Sri Lanka, Sri Lanka should highly develop its digital sector.

‘On top of that, If Sri Lankan is to sign a FTA or trade agreements, she should focus on niche markets to supply to Korean companies, she explained.

Ambassador Lee added: ‘Korea is highly digital and AI enabled and Sri Lanka needs to concentrate on that as well.

‘Further, it is going to be very important if you will be able to implement all the obligations that are laid out under a WTO agreement.

‘A single window is part of the overall trade architecture that Sri Lanka has to follow.

‘ I think that also follows with the FTA (Free Trade Agreement) negotiations. From Korea’s experience, when we had the financial crisis in 1997, we only pursued WTO negotiations. FTA negotiations came after the financial crisis.

‘The Asia-Pacific Trade Agreement (APTA) is important in this regard.

‘The APTA arrangement includes China, India, Korea, Nepal and Mongolia and 50 percent of Sri Lankan exports to South Korea benefit from the APTA.

‘But other than that, there is not much trade between the two countries. That’s why I think it is going to be very important for Sri Lanka to pursue the RCEP (Regional Comprehensive Economic Partnership) arrangement.

‘Unfortunately, there is not much appetite for upgrading the APTA because we already have separate FTAs with India and China.

‘ We have huge investments in India and in ASEAN countries. I think it would be very important that Sri Lanka uses that kind of opportunity to see if there is any initiative for Sri Lankan companies to provide supplies to Korean companies working in other countries.’

By Hiran H Senewiratne

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

John Keells CG Auto (JKCG Auto), the authorised distributor of BYD and DENZA in Sri Lanka, has launched a campaign in partnership with Bank of Ceylon (BOC) and Sri Lanka Insurance Corporation General Ltd. (SLIC) to accelerate New Energy Vehicles (NEV) adoption among government sector employees.

The initiative, which will run from 4 May to 31 July 2026, is designed to improve accessibility and affordability of NEVs for public servants through a structured set of financing, insurance and ownership support mechanisms.

Open to employees across the government sector, the programme reflects a coordinated effort between industry and national institutions to enable a gradual and practical transition towards cleaner transport options.

As part of the collaboration, JKCG Auto will extend a set of ownership support measures across its BYD and DENZA portfolio, including introductory price considerations, access to home charging infrastructure, and aftersales service support. These are complemented by preferential leasing arrangements facilitated by the Bank of Ceylon, alongside tailored insurance solutions and customer support services from Sri Lanka Insurance Corporation.