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

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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



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World Bank puts USD 110m into climate-resilient road rebuilding

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A Cyclone Ditwah-damaged area in Sri Lanka.

By Ifham Nizam

The World Bank has approved USD 110 million in additional financing to rebuild around 600 kilometres of roads damaged by Cyclone Ditwah, with the investment aimed not merely at restoring connectivity but at making critical transport infrastructure more resilient to future climate shocks.

The financing comes against a much larger recovery requirement for the transport sector, estimated at USD 1.31 billion, highlighting the scale of the infrastructure challenge following one of the most destructive weather disasters to hit the country in recent years.

The World Bank said the additional financing, provided through the International Development Association (IDA) Crisis Response Window, would support road reconstruction incorporating improved drainage, landslide protection and upgraded engineering standards.

‘Cyclone Ditwah has had a devastating impact on connectivity across Sri Lanka, but rebuilding also gives us an opportunity to build back stronger, said Gevorg Sargsyan, World Bank Group Country Manager for Sri Lanka and Maldives.

The World Bank said the programme would go beyond repairing damaged roads, helping reconnect farmers with markets, communities with essential services and households with economic opportunities.

The additional financing will extend the Inclusive Connectivity and Development Project (ICDP) by three years, taking total World Bank transport investment under the operation to USD 610 million.

The World Bank’s December 2025 GRADE assessment estimated Cyclone Ditwah had caused USD 4.1 billion in direct physical damage, equivalent to around four percent of GDP. Infrastructure accounted for approximately USD 1.735 billion, or 42% of the total, with roads, bridges, railways and water systems among the heavily affected assets.

The Bank has stressed that the USD 4.1 billion estimate measures direct physical damage and does not include income or production losses or the full cost of recovery and reconstruction.

The transport sector alone suffered extensive disruption, making the rebuilding of road networks a critical component of the broader economic recovery.

The latest USD 110 million package is expected to directly benefit more than 830,000 people, while nearly two million people across eight districts are expected to benefit from improved connectivity.

The programme is also expected to support employment during reconstruction and improve market access for approximately 22,000 tea, vegetable and paddy farmers.

The World Bank’s intervention therefore combines immediate disaster recovery with a longer-term infrastructure objective: ensuring that money spent on reconstruction does not simply restore roads to their pre-disaster condition but reduces their vulnerability to the next extreme-weather event.

That approach is becoming increasingly important as climate-related disasters place additional pressure on already constrained public finances.

Rebuilding the same infrastructure repeatedly after floods, landslides and other disasters carries a significant economic cost, making resilience an increasingly important part of infrastructure investment decisions.

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SLIC Life offers Rs.1million free life cover to parents of children born on World Children’s Day 2026

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Senior Management of SLIC Life and officials of Castle Street Hospital for Women symbolically handing over a Free Life Cover of Rs. 1 million to a parent whose child was born on 1st of October 2026

In celebration of World Children’s Day 2026, Sri Lanka Insurance Life (SLIC Life) has once again extended a Rs. 1 million free life insurance cover to the parents of every child born on 1 October 2026, across Sri Lanka. Now in its fifth consecutive year, the initiative was implemented island-wide, covering hospitals across the country and enabling parents of newborns to benefit from this special offering.

Beyond providing financial protection, the initiative seeks to highlight the importance of planning for a family’s financial security from the very beginning of a child’s life.

“The birth of a child marks the beginning of a new journey filled with hopes, dreams and aspirations. At SLIC Life, we believe that protection should begin from the very start of that journey. Through this initiative, we aim to create greater awareness of the importance of planning ahead and the role life insurance can play in safeguarding families against life’s uncertainties. As we continue this initiative for the fifth consecutive year, we remain committed to extending meaningful protection to Sri Lankan families and contributing towards a more secure future for the next generation,” said Dr. Sameera Dharmasena, Chief Executive Officer of SLIC Life.

Launched in 2022 as part of SLIC Life’s Corporate Social Responsibility (CSR) programme, the World Children’s Day initiative was introduced with the aim of supporting parents and strengthening financial security for families at an important stage in their lives. Over the years, the initiative has become a significant part of SLIC Life’s annual CSR calendar, reflecting the company’s broader commitment to children, families and communities.

SLIC Life’s commitment to children and education extends across several long standing CSR initiatives. The ‘Pasal Piriyatha Surakimu’ programme, launched in 2007, has benefited over 3,365 underprivileged schools through initiatives including classroom refurbishments, water facilities, libraries and learning resources. The 2026 edition of the programme is scheduled to be carried out in November, continuing SLIC Life’s efforts to enhance learning environments for children across the country. Complementing this, the ‘Suba Pathum Scholarship Programme’, which has been conducted since 2014, has now awarded 2,425 scholarships valued at Rs. 265 million to children of policyholders who demonstrate excellence in national examinations. The programme reflects SLIC Life’s continued focus on supporting educational aspirations and creating opportunities for the next generation.

Children remain at the heart of SLIC Life’s commitment to building a more secure future. Through the annual World Children’s Day initiative and its wider CSR programmes, SLIC Life continues to demonstrate that the value of insurance extends beyond financial protection, contributing to stronger and more resilient families and communities.

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HelpAge thanks donors for helping in carrying out free cataract surgery program

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A surgery in progress under the aegis Helpage.

At a recent seminar HelpAge Sri Lanka (HASL) thanked local and foreign donors for strengthening the on-going free cataract surgeries program conducted by HelpAge Eye Hospital, Wellawatta for less- privileged elders over 55 years.

According to HelpAge Eye Hospital statistics the free cataract surgery programme was commenced in 2002 and over 55,000 surgeries have so far been performed for elderly citizens.

Head of HelpAge Eye Hospital Mahanama Wijesinghe said needy persons over 55 years of age could contact the hospital on telephone numbers 0112555759 and 0112589450 for free cataract surgeries.

‘Steps have been taken to conduct surgeries within a short duration of 30 days after attending the Eye Hospital clinic, he said.

Wijesinghe thanked all donors for their donations towards helping underprivileged citizens of the country.

HelpAge, Executive Director Dr. Harsha Bandara said HelpAge also conducts free medical and eye camps for needy elders and thanked donors for their donations towards this meritorious cause.

He requested philanthropists and donors to make their contributions for the sake of the needy.

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