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US$ 2.5 mn cyber heist exposes system failures
COPF final report on USD 2.5 mn cyber fraud recommends action against all responsible
The US$2.5 million loss incurred during Sri Lanka’s foreign debt repayment to Australia was a clear case of a cybercrime and theft, Committee on Public Finance (COPF) Chairman Dr. Harsha de Silva told Parliament yesterday.
Presenting the COPF final report on the cyber fraud, Dr. de Silva said the incident amounted to a serious financial crime and called for a comprehensive investigation, by law enforcement authorities, to identify and prosecute all those responsible.
The report revealed serious governance, procedural and operational failures that enabled the fraudulent transfer of public funds, while recommending sweeping reforms to strengthen cybersecurity, financial controls and public debt management systems.
According to the report, officials of the Treasury and the Central Bank bore responsibility for governance lapses that contributed to the failures. It also highlighted the fact that the Ministry of Finance was operating an outdated Microsoft Exchange Server after security support had ended, while basic safeguards, such as multi-factor authentication, had not been implemented.
The COPF said suspicious payment instructions linked to debt repayments involving India, the United Kingdom, Germany and Belgium had also been detected, preventing further losses. However, the US$ 2.5 million fraud materialised only in the repayment transaction involving Australia.
The report has noted that officials had failed to verify lender email domains, relied on unverified email communications and lacked adequate internal controls, allowing the fraud to continue for months.
Although the investigation uncovered system-wide weaknesses across several institutions, only four mid-level Finance Ministry officials had been suspended so far, the report said.
The COPF has recommended a special audit of the foreign debt repayment process, strengthened cybersecurity measures across state institutions, updated financial regulations and improvements to public debt management systems.
by Saman Indrajith
Latest News
Advisory for High Waves for the sea areas extending from Colombo to Pottuvil via Galle, Matara and Hambantota
Advisory for High Waves
Issued by the Natural Hazards Early Warning Centre Issued at 03.30 p.m. on 26 August 2026 Valid for the period until 03.30 p.m. 27 August 2026
An advisory for high waves has been issued for the sea areas extending from Colombo to Pottuvil via Galle, Matara and Hambantota and naval and fishing communities engaged in activities in the aforementioned sea areas, as well as coastal communities living in the aforementioned nearshore areas, are advised to remain vigilant in this regard
The swell waves (about 2.0 m – 3.0 m) height (This is not for land area) may increase in the sea areas off the coast extending from Colombo to Pottuvil via Galle, Matara and Hambantota. There is a possibility that near shore sea areas off the coast extending from Beruwala to Matara via Galle, may experience surges due to swell waves.
News
We must create social awareness to ensure the physical and mental well-being of children with disabilities – PM
Prime Minister Dr. Harini Amarasuriya stated that, given their particular vulnerability children with disabilities require protection, and stressed the need to foster social awareness to protect them from negative social influences while promoting their physical and mental well-being. She emphasized the need to implement awareness programmes for parents, teachers and other members of society towards this end.
The Prime Minister made these remarks on Tuesday [August 25] while visiting and observing the National Institute of Special and Inclusive Education – Shishyodaya, located in Veniwelkola.
The purpose of the Prime Minister’s visit was to observe the institutional structure and gain an understanding of the areas that require further development.
The Prime Minister emphasized that a systematic mechanism should be established to transform the institution, which was established in 2019 outside the basic standards and plans for Inclusive Education, into an institution that provides quality education to children and fulfills the targeted objectives of inclusive education. She also proposed appointing a special committee to make the necessary recommendations in this regard.
The Prime Minister further stated that steps would be taken in coordination with the Ministry of Health to address the shortage of therapists and medical professionals required to provide clinical services to students at the institution. She also stressed that the maintenance of equipment and buildings should be carried out properly using the financial allocations provided for such purposes.
The Prime Minister further noted that finding sustainable solutions to the issues faced by the institution is essential, while immediate interventions should be made to address issues that can be resolved without delay. The welfare of the teachers serving at the institution was also discussed during the visit.
Member of Parliament Anura Panagoda, Chairman of the Homagama Pradeshiya Sabha Kasun Rathnayake, Secretary to the Ministry of Education, Higher Education and Vocational Education Nalaka Kaluwewa, ministry officials, parents and students were present.

[Prime Minister’s Media Division]
News
Govt. determined to press ahead with 22A: Justice Minister
By Shamindra Ferdinando
Justice and National Integration Minister Harshana Nanayakkara said yesterday that the government would proceed with both the 22nd Amendment to the Constitution, and the Judicature (Amendment) Bill, because the government could not achieve its goal by increasing the retirement ages of a section of the judges.
The Attorney-at-Law declared that the government would go ahead with both Bills, whatever the obstacles. The Minister was responding to The Island query whether the government would go ahead with the Judicature (Amendment) Bill that hadn’t been so far challenged in the Supreme Court, pending the decision on the controversial 22nd Amendment facing tough legal challenge.
Nanayakkara emphasised the importance of the enactment of both Bills. The 22nd Amendment seeks to increase the retirement ages of Supreme Court judges to 67 from 65 and Court of Appeal judges from 63 to 65. The Judicature (Amendment) Bill seeks to increase the retirement ages of the High Court judges to 63 from 61, and that of the District court judges and and Magistrates to 62.
Minister Nanayakkara said that the enactment of both Bills simultaneously would make a significant contribution to improve the overall situation, particularly dealing with a backlog of 1.1 million cases.
Joint Opposition and the Bar Association of Sri Lanka (BASL), too, acknowledged that petitions against the Judicature (Amendment) Bill were yet to be filed.
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