In the shadowy war against financial crime, Sri Lanka’s Financial Intelligence Unit (FIU) serves as the nation’s central nervous system, tirelessly tracking the illicit flows of money laundering and terror financing.

At a recent event, Dr. Subhani Keerthiratne, the Unit’s Director, pulled back the curtain on this critical operation, revealing both hard-won gains and a glaring, multi-million-rupee vulnerability: the unchecked splurge on high-end luxury vehicles.

Housed within the Central Bank of Sri Lanka, the FIU bears a formidable mandate to scrub the financial system clean by combating money laundering, terrorist financing, and proliferation financing. Dr. Keerthiratne, a seasoned lawyer and senior official, articulated this mission with commendable clarity.

“We observe and act to ensure criminals cannot make use of our financial system,” she stated. “When we remove the monetary element from these nefarious transactions, we strip criminals of their purpose.”

The FIU’s methodology, as explained to the press, is a meticulous blend of forensic analysis and strategic enforcement. It operates as a central clearinghouse for Suspicious Transaction Reports (STRs), which flow in from a web of regulated entities – from banks and finance companies to real estate agents and gem and jewellery dealers. The Unit sifts through this digital mountain of data, distills it into actionable intelligence, and then passes on to the law enforcement agencies. This painstaking work is now yielding tangible results.

Dr. Keerthiratne disclosed that the FIU’s efforts have directly contributed to at least 13 convictions for financial crimes. With 10 cases concluded, one acquittal, and a further 16 cases slated for High Court hearings, the wheels of justice are turning.

“While these outcomes may not be sufficient, they signify significant progress,” she noted, underscoring the determined push to bolster the country’s AML framework ahead of Sri Lanka’s critical third FATF (Financial Action Task Force) Mutual Evaluation next year.

Yet, amidst these gains, a significant chink in the armour was exposed. While a routine bank transfer exceeding one million rupees is automatically flagged, the spectacle of an individual purchasing a Rs. 75 million BYD or other luxury marque with spot cash often slips beneath the radar.

When The Island asked her about this regulatory blind spot, Dr. Keerthiratne replied. “The vehicle sales sector is not a designated category for reporting in Sri Lanka, as is the case in many other jurisdictions,” she explained. “Car dealers are not obligated to report their transactions to the FIU,” she stated.

This loophole is particularly jarring as Sri Lanka has reopened the floodgates to car imports, with companies now bringing in the world’s most exclusive models. The public display of exorbitant wealth on luxury assets – a classic vehicle for laundering illicit funds – is not automatically captured by the FIU’s surveillance net.

However, there exists, theoretically, a safety net. Dr. Keerthiratne pointed to an ‘umbrella clause’ in the Prevention of Money Laundering Act, which imposes a legal obligation on any person in a business, trade, or profession including car dealers to report a transaction they suspect is linked to crime.

Clearly, this provision places the burden of vigilance on the individual dealer, transforming them into an ad-hoc whistleblower. It is a subjective and precarious mechanism in comparison to the mandatory, systematic reporting that binds the formal banking sector.

For now, the flash of a luxury car on the streets of Colombo remains a potent symbol of a system still imperfect, and a stark reminder that the next critical step may be to ensure that showrooms, and not just banks, are compelled to answer the call of duty.

By Sanath Nanayakkare

The sole ground services provider at Bandaranaike International Airport (BIA), is rolling out its self-check-in service for passengers of customer airlines ahead of the winter travel high season, which is expected to bring over 300,000 tourists to the island in December alone. The initiative, made possible by the airline’s IT team, follows the installation of 20 new self-check-in kiosks at the departure terminal last month, bringing the total to 28 and boosting airport efficiency and the overall passenger experience in line with Sri Lanka’s tourism development efforts.

Since its launch in 2023, the self-check-in kiosk facility has seen a strong uptake, with an increasing number of travellers opting for self-service over traditional counters. Currently, 15% of SriLankan’s passengers flying out of BIA use the kiosks, helping ease congestion at the departure terminal. The facility enables passengers to bypass queues and complete their check-in independently by selecting seats, printing boarding passes and generating bag tags in just a few simple steps.

Sampath Bank maintained strong growth in the first nine months of 2025, recording a 21% increase in Profit After Tax (PAT) to Rs. 21.5 billion. This robust performance came despite a challenging interest rate environment that saw its Net Interest Income contract by 6%.

The bank’s profit growth was primarily driven by two key factors: a significant 107% surge in non-fund based income, including fees from cards and trade, and a substantial 62% reduction in impairment charges. This reflects improved credit quality and a stronger repayment capacity among its customers.

Demonstrating resilience, the bank’s gross loan book expanded by 18.9%, surpassing the Rs. 1 trillion milestone. Meanwhile, customer deposits grew robustly, strengthening its funding base.

Sampath Bank also confirmed its capital strength, maintaining all regulatory capital ratios well above the required minimums, even after being designated a systemically important bank. The bank’s commitment to sustainability was recognized internationally when it was named “Best Bank for ESG in Sri Lanka” at the Euromoney Awards 2025.