Business

CBSL’s Financial Intelligence Unit battling to keep Sri Lanka away from ‘black and grey’ lists

Published

2 years ago

2023/10/16

By Sanath Nanayakkare

The Next Mutual Evaluation of the Financial Action Task Force (FATF), the global money laundering and terrorist financing watchdog has begun to creep up on Sri Lanka, and the Financial Intelligence Unit (FIU) of the Central Bank of Sri Lanka (CBSL) is busy taking on the gigantic challenge of effectively implementing a compliance framework to convince the FATF that Sri Lanka qualifies to stay away from their black and grey lists.

The framework also needs to include ways to prevent Financing of Proliferation of Weapons of Mass Destruction.

Dr. Subhani Keerthiratne, Additional Director, Financial Intelligence Unit (FIU) of the Central Bank of Sri Lanka told the media recently that Money Laundering and Terrorism Financing (ML and TF) pose serious risks to the domestic and global financial system, peace and development, and therefore, it is important for Sri Lanka to have a robust Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework in place. FATF calls upon all countries to effectively implement these measures in their national systems. These requirements are in line with the United Nations Convention and The International Convention for the Suppression of the Financing of Terrorism,” she pointed out.

“The 3rd Mutual Evaluation of Sri Lanka in this regard is scheduled to commence in March 2025 and all stakeholders need to unite with a national spirit to demonstrate that Sri Lanka has strong measures in place to combat money laundering and terrorist financing. The FIU alone can’t achieve this. It has to be a concerted effort of all stakeholders, the media and the general public. Responsible parties need to apply enhanced due diligence to apply counter-measures to protect the international financial system from the risks that could emanate from our country,”

The Additional Director of the FIU made these remarks at a workshop conducted for journalists with the objective of creating broader awareness of money laundering and terrorist financing risks while asking the media to take the message across to the general public of the country who could effectively support the FIU and the law enforcement authorities to detect and crack down on the culprits engaging in such activities.

FATF sets international standards that aim to prevent such illegal activities and the harm they cause to society and the FIU has to demonstrate its technical compliance of International standards on combatting Money Laundering and Financing of Terrorism and Proliferation.

This means the FIU will have to set standards and promote effective implementation of legal, policy and operational measures to combat ML/TF/PF, both at national and international level.

The FIU, as the focal point of AML/CFT for the country, has the responsibility to ensure that Sri Lanka is compliant with all 40 FATF Recommendations and its AML/CFT framework produces expected results. FIU has played a key role in achieving the current acceptable technical compliance level of Sri Lanka in order to stay away from the Grey List.

The FATF does not require its members to take action on countries listed in the ‘Grey List’. Members are required to take action only against Blacklisted Countries. However, most countries treat Grey Listed countries as of ‘high risk’ and blacklist them. Subsequent to Sri Lanka’s second Grey Listing, the EU included Sri Lanka in its Blacklist. Repercussions of EU Blacklisting led to several banks in the EU region stopping their dealings with Sri Lankan customers/institutions. ‘Handelsbanken’ in Sweden stopped all payments to Sri Lanka both for individual and corporate customers. Sri Lankan exporters (IT exporters, tourism sector) faced difficulties in getting back their export proceeds. Foreign investors raised concerns about real estate sector investments .Reluctance for new correspondent banking relationships could also result in from such a situation,” she said.

She pointed out that J P Morgan visited FIU-Sri Lanka as the country was treated as of high-risk and subjected to enhanced due diligence for correspondent banking. Western Union and Danske Bank expressed the same sentiments.

“If we go back to grey list, Sri Lankan corporations, individuals, financial institutions could be subject to extra scrutiny. There would be higher cost of borrowing– Increased interest rates due to additional risk premia. Also, there is the possibility of being downgraded by global credit agencies and the decline of doing business indicators. Sri Lankan business community would be discouraged to engage in import/export trade in such a context,” she noted.

She went on to say that the IMF also concerns in this area with regard to the country’s lack of successful corruption-related money laundering investigations, prosecutions, and convictions.

“The IMF is concerned that Sri Lanka has yet to address the deficiencies relating to transparency of beneficial ownership of legal persons in its legal framework,” she said.

“The Mutual Evaluation in March 2025 will assess how effectively Sri Lanka has implemented measures to combat ML/TF. In this process, Sri Lanka is required to submit a technical compliance report with all the relevant material such as laws, regulations, manuals, procedures, circulars, SOPs as evidence of compliance,”

Once a robust FIU framework is in place, it will help the authorities to take effective action to detect and disrupt financial flows that fuel crime, terrorism and corruption and punish those responsible for illegal activity and become a jurisdiction free from constant monitoring by the FATF.

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Business

David Pieris Group expands global footprint with investment in Dubai-based Navire Logistics

Published

17 hours ago

2025/12/20

Thilina Walpola

The David Pieris Group continues to strengthen its international presence with the acquisition of 50% ownership in Navire Logistics Services L.L.C, (www.navirelogistics.com) a reputed logistics company based in Dubai and Oman. This strategic move marks a significant milestone in the Group’s journey towards expanding its operations beyond Sri Lanka and positioning itself in the international markets.

In Sri Lanka, the Group’s logistics arm, D P Logistics (Private) Limited (DPL), has already established itself as a comprehensive logistics solutions provider — covering warehousing, transportation, freight forwarding, project logistics, inland distribution and custom house brokering.

DPL currently ranks among the top ten players in warehousing and 3PL operations and holds one of the largest container fleets amongst the logistics companies in the country. Despite operating in a highly fragmented freight forwarding market, DPL continues to capture a growing share, reinforcing its reputation as one of the very few local companies with expertise across all logistics disciplines.

David Pieris Group also acquired in 2022, Pulsar Shipping Agencies (Pvt.) Limited, the shipping arm of Expolanka Holdings PLC to expand its Logistics & Shipping Cluster into ship agency, husbandry services and marine logistics.

Leveraging this strong domestic foundation, DPL has now extended its capabilities to the international stage through its partnership with Navire Logistics Services L.L.C. The company’s expertise in custom house brokering, freight forwarding, cargo consolidation, warehousing, and transport solutions will be integrated into Navire Logistics’ operations, enhancing service quality and efficiency across the Middle East and South Asia.

The investment also extends to operations in Oman through a fully owned subsidiary, with further expansion plans already underway to establish operations in Saudi Arabia, Thailand, and India — strengthening the Group’s regional logistics network.

Business

HNB strengthens national response to Cyclone Ditwah

Published

17 hours ago

2025/12/20

Thilina Walpola

HNB Managing Director / CEO, Damith Pallewatte, hands over the donation to Secretary to the President Dr Nandika Sanath Kumanayake , HNB Chief Operating Officer Sanjay Wijemanne is also in the picture

HNB PLC has contributed of Rs. 100 million towards the Rebuild Sri Lanka Fund, reinforcing its commitment to national recovery efforts following the devastation caused by Cyclone Ditwah.

“On behalf of HNB, I wish to convey our solidarity with all our fellow Sri Lankans, especially those severely affected by Cyclone Ditwah. As a home-grown institution, our connection to the communities we serve runs deep. Many of our customers and colleagues have been directly or indirectly affected, and we are committed to standing with them during this difficult time and supporting them as they rebuild.”

“HNB’s contribution to the Rebuild Sri Lanka Fund is a sign of our commitment to this collective mission. We recognize that this is going to be a long and challenging process, but we stand ready and committed to support both the immediate and long-term recovery effort,” HNB Managing Director/ CEO, Damith Pallewatte stated.

Complementing its direct financial support to the Fund, HNB has also launched a nationwide disaster relief initiative as the first phase of a broader, coordinated response from the bank.

As part of the program, the Bank donated over 2,500 essential relief and nutrition packages to support displaced families, with the consignments formally handed over to the Sri Lanka Army to ensure structured, transparent, and equitable distribution across the impacted areas of Kandy, Gampaha, Kaduwela, and Hanwella, while separate packages were provided to affected employees to strengthen their personal recovery.

Business

ComBank ranked No 1 in Business Today’s Top 40 for 2024–25

Published

17 hours ago

2025/12/20

Thilina Walpola

Sharhan Muhseen, Chairman, and Sanath Manatunge, Managing Director/CEO of Commercial Bank

The Commercial Bank of Ceylon has been ranked No 1 in the Business Today Top 40 for 2024–25, reaffirming its position as Sri Lanka’s best-performing bank and one of the country’s top five strongest corporate entities for the 17th consecutive year.

Business Today assigned the Bank an aggregate score of 37.65, placing it at the top of its latest ranking of leading Sri Lankan enterprises.

In its presentation of the rankings, Business Today described Commercial Bank as “a beacon of resilience and renewal after a defining year,” noting that 2024 was shaped by strategic transformation, disciplined execution, and unwavering commitment to long-term sustainable growth. The publication recognised the Bank’s strength across key business lines, its deepened customer focus, and a performance trajectory that reinforced its reputation as Sri Lanka’s most resilient and customer-centric financial institution.

Reflecting on the ranking, Mr Sanath Manatunge, Managing Director/CEO of Commercial Bank said: “Being ranked No 1 in the Business Today Top 40 is a powerful endorsement of the discipline, resilience and purpose with which we steered the Bank through a year of tough conditions and decisive transformation. Our performance in 2024 was defined by navigating turbulence without losing sight of our priorities: strengthening fundamentals, supporting customers, and preparing the institution for long-term growth. This ranking is not merely an award; it is confirmation that our strategy is delivering results and that the Bank is firmly positioned to contribute to national progress with renewed confidence.”

Business Today also highlighted the Bank’s record-breaking financial performance during the year. The magazine quoted Mr Sharhan Muhseen, Chairman of Commercial Bank as saying that the Bank had delivered the highest profits in its history, and attributing this outcome to a disciplined focus on efficiency, digital innovation, and customer-centred transformation. These qualities, the publication stated, enabled the Bank to strengthen its market position and make meaningful contributions to economic recovery.

Among the milestones recognised were an equity capital infusion of Rs. 22.54 billion through a rights issue and the raising of Rs. 20 billion in Tier II capital via a debenture issue.