Business

Sri Lanka’s financial watchdog sniffs out dirty money, but luxury car splurges slip through the net

Published

3 months ago

2025/11/17

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

All News Advertisement

Business

A Historic First: Sri Lanka’s capital market leaders bring investor forum to Saudi Arabia

Published

19 hours ago

2026/02/6

Thilina Walpola

Key dignitaries at the Saudi investor forum

The Securities and Exchange Commission of Sri Lanka (SEC) and the Colombo Stock Exchange (CSE), in association with the Embassy of Sri Lanka to the Kingdom of Saudi Arabia, successfully convened an investor forum on Saturday 24th January 2026 at the Radisson Blu Hotel, Riyadh Convention & Exhibition Center. Alongside the forum, the SEC and CSE facilitated a meeting with the Public Investment Fund (PIF) which is Saudi Arabia’s main sovereign wealth fund.

The forum was organized to engage directly with the vibrant Sri Lankan expatriate community in the Kingdom and international investors, highlighting compelling opportunities within Sri Lanka’s capital market following the country’s successful exit from sovereign default and restoration of macroeconomic stability.

The forum was marked by the presence of several senior level policy officials, market leaders and market regulators including; Dr. P. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka (CBSL); Chathuranga Abeysinghe, Deputy Minister of Industry and Entrepreneurship Development; Ameer Ajwad Ambassador of Sri Lanka to the Kingdom of Saudi Arabia.; Senior Prof D.B.P.H. Dissabandara, Chairman of the SEC; Ray Abeywardena, Director of CSE; and Dr. Naveen Gunawardane, Co-Founder and Managing Director of Lynear Wealth Management.

In his welcome address, Ameer Ajwad stated, that a significant opportunity remains in broadening public participation in the capital market of Sri Lanka. As financial literacy and investment awareness among potential investors are limited, the investor forum would serve to bridge the knowledge gap. The forum offered an excellent opportunity for first-time investors, overseas investors, and those seeking to enhance their knowledge, to learn how to invest prudently, manage risk, and build wealth with discipline and confidence. Ambassador invited participants to make full use of the presence of high-level authorities from Sri Lanka’s key financial institutions, such as the Central Bank of Sri Lanka, the SEC, and the CSE, and to explore investment opportunities in Sri Lanka’s capital market, not only as a pathway to financial growth but also as a meaningful contribution to Sri Lanka’s resilience and long-term prosperity.

Business

CIC Holdings’ 9MFY26 revenue reaches Rs.70 bn

Published

19 hours ago

2026/02/6

Thilina Walpola

Agriculture-rich diversified conglomerate CIC Holdings PLC (CSE: CIC) recorded a consolidated revenue of Rs. 70.28 billion for the nine months ended 31 December 2025 (9MFY26), reflecting an increase of 8.69% YoY compared to the corresponding period of the previous year.

The Group’s gross profit increased by 10.11% to Rs. 18.42 billion, with the gross profit margin for the period under review improving to approximately 26%, supported by disciplined pricing and product mix optimisation. Profit after tax (PAT) increased to Rs. 5.97 billion from Rs. 5.70 billion in the corresponding period of the previous year, despite losses incurred in parts of the Group’s agri operations following the impact of Cyclone Ditwah, which disrupted cultivation activity during the Maha season.

The Group’s Crop Solutions sector remained the largest contributor to consolidated revenue, accounting for approximately 44.7% of total revenue, followed by Livestock Solutions at 21% and Health & Personal Care at 20.18%. The remaining sectors, Industrial Solutions and Agri Produce, contributed 8.6% and 6.4% to Group turnover respectively. Health and Personal Care , particularly export-driven product lines, recorded improved performance during the period, alongside continued growth in feeds, poultry, and veterinary care solutions, which supported the Group’s overall operating results.

Despite cyclone-related disruption to cultivation cycles, the Group delivered a strong operating performance, with EBITDA and operating profit (EBIT) both recording year-on-year growth. Operating profit (EBIT) closed at Rs. 9.67 billion, compared to Rs. 8.62 billion in the corresponding period of the previous year, reflecting the strength of the Group’s diversified portfolio and disciplined cost management.

During the period in review, key Group businesses across the five industry sectors, namely Crop Solutions, Agri Produce, Livestock Solutions, Industrial Solutions, and Health & Personal Care, continued to perform resiliently. Crop Solutions revenue increased from Rs. 28.06 billion to Rs. 32.32 billion, while Livestock Solutions revenue grew from Rs. 13.35 billion to Rs. 14.60 billion. Health & Personal Care revenue improved from Rs. 14.29 billion to Rs. 14.46 billion, supported by herbal health product exports and steady domestic demand. Revenue from Agri Produce increased from Rs. 4.35 billion to Rs. 4.64 billion, while Industrial Solutions revenue rose from Rs. 6.07 billion to Rs. 6.28 billion.

Commenting on the performance, CIC Holdings Group CEO Aroshan Seresinhe said, “Despite the disruption caused by Cyclone Ditwah to agricultural activity during the Maha season, the Group remained focused on supporting farming communities through well clean-up operations, field renovation, and the restoration of cultivation activity.

Business

CSE regains some of its bullish verve as turnover hits Rs.11 billion

Published

19 hours ago

2026/02/6

Thilina Walpola

CSE trading reflected a bullish trend yesterday due to positive quarterly corporate earnings coupled with lower Treasury Bill yields, market analysts said.

Further, institutional participation contributed more than 50 percent to the day’s turnover.

Amid those developments both indices moved upwards. The All Share Price Index went up by 63.67 points, while the S and P SL20 rose by 12.58 points.

Turnover stood at Rs 11.1 billion with10 crossings. The top seven crossings were: JKH 189.5 million shares crossed to the tune of Rs 4.2 billion; its shares traded at Rs 22.70, HNB 3.5 million shares crossed for Rs 1.48 billion; its shares traded at Rs 422, Hemas Holdings 11 million shares crossed for Rs 376.2 million; its shares traded at Rs 34 20, Commercial Bank 1.5 million shares crossed for Rs 336.8 million; its shares traded at Rs 224.50, Sampath Bank 600,000 shares crossed for Rs 93.6 million; its shares sold at Rs 156, Laugfs Gas 868,000 shares crossed for Rs 51.6 million; its shares sold at Rs 71 and Sierra Cables 1 million shares crossed for Rs 36.7 million; its shares sold at Rs 36.70.

In the retail market top seven companies that mainly contributed to the turnover were; Ceylon Land Equity Rs 385 million (20 million shares traded), Commercial Bank Rs 373.9 million (1.7 million shares traded), Luminex Rs 247.2 million (26.7 million shares traded), Colombo Dockyard Rs 152 million (one million shares traded), TJ Lanka Rs 152 million (four million shares traded), Easter Merchants Rs 142 million (8.7 million shares traded) and RIL Properties Rs 116.9 million. During the day 441.3 million share volumes changed hands in 44406 transactions.

It is said that manufacturing sector counters, especially JKH, led the market while the banking sector also performed well, especially HNB and Sampath Bank. Further, the capital goods sector too performed well.Yesterday the Central Bank’s US dollar buying rate was Rs 305.78 and selling rate Rs 313.32.

By Hiran H Senewiratne