Sri Lanka’s Deputy Transport Minister drops a bombshell in Parliament accusing small food stalls like Kottu and Vadai vendors of being fronts for laundering black money. With the nation ranked 80th globally for money laundering, the minister demands urgent reforms to the Companies Act to clamp down on financial crime masked as street food success.
Kottu Shops Used as Money Laundering Fronts, Claims Deputy Minister Ruwan Ranasinghe
Deputy Minister of Transport Ruwan Ranasinghe made a startling revelation in Parliament, stating that some millionaires in Sri Lanka are laundering black money under the guise of running small businesses like Kottu Kadas and Vadai stalls.
Speaking during the second reading debate of the Companies (Amendment) Bill, Ranasinghe warned that this covert economy is a major contributor to Sri Lanka’s alarming global ranking in money laundering.
“The International Monetary Fund estimates that 2%–5% of global economic output is linked to money laundering. Personally, I believe Sri Lanka exceeds that,” he said.
Citing statistics, the Deputy Minister revealed that out of 164 countries, Sri Lanka ranks 80th in money laundering risk, with a rating of 5.28%. “To compare, Iceland is at the bottom with 1.17%, while Haiti’s risk is at 8.25%. This puts us in a very dangerous zone,” he explained.
Ranasinghe highlighted real-life examples where individuals have become billionaires almost overnight by running what appear to be humble food stalls. “We all know someone who opened a small Kottu shop and suddenly became a billionaire,” he noted. “There are many doing honest business who remain poor. So where is this new wealth really coming from?”
He emphasized that illicit funds from terrorism, criminal transactions, or unregulated businesses are often filtered into the economy using legal loopholes. “These funds are being whitewashed through front-end businesses that are seemingly ordinary but function as high-volume laundering machines,” he warned.
The Deputy Minister stressed that this is why the government is pushing for amendments to the Companies Act—to address and prevent the misuse of corporate structures for money laundering and to bring financial transparency to small and medium businesses.
The speech sparked discussions across the political spectrum and drew attention to the growing need for financial oversight and stronger anti-laundering legislation.
