News
Banking sector claims its integrity intact despite ‘isolated incidents of fraud’
Sri Lanka’s banking sector has provided a collective and categorical assurance that it remains stable, resilient, and secure despite a few recent isolated incidents of financial fraud, emphasising that these developments do not pose a threat to the safety of customer deposits or the overall integrity of the financial system.
While acknowledging that such incidents have understandably generated some concerns, the industry has reiterated that it is addressing these matters comprehensively and that it is well equipped to manage and mitigate these challenges. This assurance was conveyed in a statement issued to the media by the Sri Lanka Banks’ Association (SLBA), which represents all licensed commercial banks in the country.
Addressing recent reports of financial fraud and cyber-related incidents that have drawn heightened public attention, the Association underscored the strength of the sector’s fundamentals and the effectiveness of ongoing regulatory oversight and risk management frameworks.
“Recent reports of financial fraud and cyber-related incidents have understandably received public attention. Industry leaders and regulators emphasise, however, that the banking sector remains fundamentally strong, resilient, and well equipped to withstand such challenges, without compromising its core stability or the security of customer deposits,” the Chairman of the SLBA Sanath Manatunge stated.
He noted that while many social media posts are either misleading or carry inaccurate information, some recent cases, including electronic fund transfer fraud, have raised important questions about digital security. However, these incidents represent only a very small proportion relative to the substantial institutional capital buffers maintained by banks. Importantly, depositors are assured that customer funds remain secure, with any such losses being absorbed through institutional capital buffers rather than public deposits.
Other cybercrime cases reported in recent months, including phishing-related fraud which are not directly connected to the banking industry and hence do not manifest any vulnerabilities in the system, however underscore the evolving and increasingly sophisticated nature of digital threats faced by financial systems worldwide, the Chairman said, but stressed that these are isolated incidents and do not reflect systemic weaknesses across the banking industry.
Reinforcing this position, the Central Bank of Sri Lanka has confirmed that all licensed banks continue to maintain capital adequacy and liquidity ratios well above minimum regulatory requirements, the Association pointed out. The regulator has also reiterated its readiness to provide temporary liquidity support if required, ensuring the uninterrupted stability of the financial system.
“Sri Lanka’s banking sector collectively manages trillions of rupees in assets, supported by diversified portfolios and robust governance frameworks. This scale, combined with prudent risk management practices, provides a strong foundation for absorbing shocks while maintaining public confidence,” Manatunge said.
At the same time, the industry is actively strengthening its defences against emerging threats. Banks are continuously enhancing cybersecurity frameworks through investments in advanced Fraud Risk Management Systems, more rigorous monitoring protocols, and independent forensic audits. These efforts are complemented by ongoing regulatory and parliamentary initiatives aimed at strengthening governance, accountability, and transparency across the sector.
Recognising that customer awareness is a critical line of defence, banks have also intensified public education initiatives focused on safe digital practices. These include guidance on password security, phishing prevention, and the secure use of QR codes and other digital payment tools.
The SLBA noted that cyber fraud is not unique to Sri Lanka, with similar incidents reported in major economies around the world. In these markets, banking systems have remained stable, supported by strong regulatory oversight and continuous adaptation to emerging risks. Sri Lanka’s banking industry is demonstrating comparable resilience, with swift corrective measures and vigilant supervision reinforcing confidence in the system.
While recent incidents have highlighted certain challenges in the environment, the benefits of digital banking far outweigh such concerns, Manatunge added, reiterating that Sri Lanka’s financial sector remains robust, well-capitalised, and subject to close regulatory oversight. These incidents are isolated in nature and do not indicate systemic failure, and the corrective measures already underway are expected to further strengthen the sector’s resilience against future threats.
The SLBA concluded: “Sri Lanka’s banks continue to stand as pillars of stability, safeguarding customer deposits while supporting the country’s economic progress. We urge customers to remain vigilant in their own digital practices, even as the industry continues to enhance the safeguards that protect them.”
News
Construction of Jet A-1 Aviation fuel pipeline and new oil tank complex at Muthurajawela begins under President’s patronage
President Anura Kumara Dissanayake said that the Government’s objective is to maintain a strong state presence in the energy market while providing an efficient service to the people, adding that significant progress has been achieved towards this objective over the past two years and that a strong energy market that does not place a burden on the people is now being built in Sri Lanka.
The President made these remarks on Friday (02) morning while attending the commencement of construction of the Jet A-1 pipeline system of the Ceylon Petroleum Corporation (CPC) and two new oil storage tank systems belonging to the CPC and the Ceylon Petroleum Storage Terminal Limited (CPSTL).
The projects are being implemented in line with the Government’s national objective of developing infrastructure in the energy sector, with the aim of ensuring the security of aviation fuel supplies, reducing supply costs and providing the capacity required to meet future demand for aviation fuel.
A dedicated pipeline and associated tank complex are being constructed to connect Muthurajawela with the Bandaranaike International Airport in Katunayake, with the aim of meeting the future demand of the country’s aviation sector, ensuring the security of aviation fuel supplies and reducing transportation costs.
Construction has commenced on five new Jet A-1 fuel storage tanks with a total capacity of 92,000 cubic metres. These comprise two large Jet A-1 tanks, each with a capacity of 30,000 cubic metres; two medium-sized tanks, each with a capacity of 15,000 cubic metres; and an additional tank with a capacity of 2,000 cubic metres. The fuel supply pipeline system will be connected to the airport through a 21-kilometre-long underground pipeline with a diameter of 10 inches from the Muthurajawela tank complex. The project is scheduled for completion within 30 months.
Meanwhile, as part of ongoing efforts to strengthen and expand storage and infrastructure facilities in the petroleum industry, the Ceylon Petroleum Storage Terminal Limited (CPSTL) commenced construction today of three new storage tanks at the Muthurajawela Terminal.
Upon completion, the three-tank system, comprising two tanks with a capacity of 15,000 cubic metres each and one tank with a capacity of 10,000 cubic metres, will provide an additional total storage capacity of 40,000 cubic metres.
This will further enhance the petroleum storage capacity of the terminal and support the continued development of the country’s petroleum infrastructure. The project has a contractual period of 18 months and is scheduled for completion in April 2028.
The tanks are being constructed in compliance with relevant international standards and recognised industry best practices, ensuring enhanced safety, reliability and operational efficiency. The additional storage capacity will strengthen the country’s fuel reserves, improve operational flexibility and support the reliable and uninterrupted distribution of fuel products to meet the country’s growing energy requirements.
Minister of Ports and Civil Aviation and Minister of Energy Anura Karunathilaka said,
“We are now in an era of energy transition. The world is rapidly moving towards the use of clean energy. The use of electric vehicles is very important in this regard, and our country is also now moving in that direction.
The use of solar energy is also important. We expect to add 1,200 megawatts of solar power capacity to the national grid by 2029.
As a country, we must focus not only on controlling fuel prices but also on controlling fuel consumption. The public also has a major responsibility in this regard.
It is particularly important to change our patterns of energy consumption. Greater energy security can be achieved by avoiding periods of high energy demand, shifting towards electricity use and using fuel-efficient vehicles, particularly electric vehicles.”
Chairman of the Ceylon Petroleum Corporation D. J. Rajakaruna said,
“We faced a major challenge due to the war in the Middle East. However, with the intervention of the President, relief was provided to the people and the situation was managed very effectively.
As a result, while diesel prices in the global market increased by 91%, the increase in Sri Lanka was only around 39.5%. While petrol prices in the global market increased by 80%, the increase in Sri Lanka was only around 41%.
Despite providing fuel at lower prices in this manner, the Corporation has recorded a profit of Rs. 28 billion this year. We also recorded a profit of Rs. 36 billion last year.
This may raise the question of why fuel prices are not being reduced when there are such profits.
However, we have used those profits to commence a number of infrastructure development projects at the institution.
These include adding the capacity of 11 tanks, including the construction of six tanks that had previously been abandoned, to increase fuel storage capacity; modernising our oil-filling section, which is more than 90 years old, and establishing a gantry system similar to that at Muthurajawela; laying two new pipelines for unloading fuel from the port to Kolonnawa; constructing a new pipeline to transport Jet A-1 fuel to Katunayake; and upgrading the pipeline system and laying new pipelines, among many other projects.
We are implementing these projects using those profits. Therefore, we have returned the benefits to the people through these investments.”
The Minister of Science and Technology, Professor Chrishantha Abeysena; Deputy Minister of Energy, Arkam Ilyas; Member of Parliament Kumara Jayakody; Secretary to the Ministry of Energy and Senior Additional Secretary to the President, Russell Aponso; foreign ambassadors; government officials including officials of the Ministry of Energy and the Ceylon Petroleum Corporation; and representatives of Sinopec were among those present at the occasion.
President’s Media Division (PMD)
News
Lanka enters new phase of prosecutions as hurdles clear
MONETABRIEF –The prosecution of high-profile individuals from the former Rajapaksa administrations is set to escalate this month with the clearing of legal hurdles and administrative bottlenecks, according to officials involved in the process.
Former president Gotabaya Rajapaksa’s attempt to secure an order preventing his arrest in connection with the Easter Sunday massacre was turned down by the Court of Appeal on Thursday.
An overseas travel ban has been in operation against Rajapaksa since June, but the Criminal Investigations Department made no move to question him. He instead filed a writ application seeking an order preventing his possible arrest.
President of the Court of Appeal Rohantha Abeysuriya noted that the court would not interfere with the investigative process. Any attempt by the court would amount to an obstruction of the investigation.
In an unrelated case, the same court rejected an application by opposition legislator Dilith Jayaweera seeking the quashing of a contempt charge filed against him by the Fort magistrate. The charges against Jayaweera and a few other opposition politicians are expected to be taken up in the coming week.
Jayaweera and other opposition politicians — Wimal Weerawansa, Udaya Gammanpila, Sugeeshwara Bandara, and Asanka Navaratne
— were hauled up over their remarks relating to the arrest of Suresh Sallay, the former head of the State Intelligence Service.
SLPP academic Mahinda Pathirana is also charged over his public comments about Sallay’s arrest in February under the draconian Prevention of Terrorism Act.
Former president Mahinda Rajapaksa’s son, legislator Namal Rajapaksa, is already in remand custody following his arrest in connection with three cases of bribery and money laundering relating to the 2013 Airbus deal and the Krrish property development in Colombo.
Although Namal has been granted bail in the Airbus money laundering charge, he is in custody until October 13 over the bribery charge relating to the same Airbus transaction. His arrest is under a provision of the Anti-Corruption Act that does not allow a magistrate to grant bail unless under exceptional circumstances.
Meanwhile, his mother Shiranthi Rajapaksa, who had been asked to report to the Financial Crimes Investigations Division on September 24, was a no-show and was yet to return from Singapore.
She had travelled overseas on September 16, and a family spokesman said she was handed the FCID summons at the departure lounge of Bandaranaike International Airport just before she boarded a flight to Singapore.
At the time, the family spokesman said she was due to return in three days.
“We will see greater momentum in the legacy cases in the coming weeks,” an official involved in the prosecutions said.
“We have cleared the legal hurdles to press ahead with more arrests,” he said.
“We are working on a few administrative issues which will be resolved very soon.”
The controversial prosecution of former President Ranil Wickremesinghe is dragging on without him being formally indicted since his arrest in August last year. The Fort magistrate has listed the case again for November 11, when the Attorney-General is expected to report on his decision regarding action against Wickremesinghe.
News
Police warn: Court evaders face property seizure
Police have reminded the public that courts have the power to take legal action against individuals who evade arrest or remain in hiding after warrants have been issued against them.
Police said that under Section 60 of the Code of Criminal Procedure Act No. 15 of 1979, a court could issue a written proclamation requiring a person evading arrest under a warrant to appear at a specified place and time.
The proclamation must allow the person at least 30 days to appear before court, Police said.
If the person fails to appear even after the proclamation has been issued, the court may take further action under Section 61 of the Act.
This includes issuing an order for the attachment of the movable or immovable property belonging to the person concerned.Police issued the reminder highlighting the legal measures available against persons who deliberately evade arrest and remain in hiding after warrants have been issued.
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