Sri Lanka illegal fund transfers reached US$715 million through payments for imports that never arrived, Parliament’s finance committee heard.
Sri Lanka illegal fund transfers worth approximately US$715 million have taken place since 2023, the Committee on Public Finance was told during a formal investigation.
President Anura Kumara Dissanayake first revealed in Parliament on June 25, 2026, that nearly US$1 billion had allegedly been taken out of the country illegally since 2023.
Following his statement, Public Security Minister Ananda Wijepala tabled a detailed report in Parliament. Several parties then demanded a comprehensive investigation into the alleged financial irregularities.
Among those calling for an inquiry was the party led by former President Ranil Wickremesinghe. The period under examination includes Wickremesinghe’s tenure as President and Minister of Finance, when the alleged transactions reportedly occurred.
Committee Hears Details of US$715 Million Outflow
The Committee on Public Finance subsequently began a formal inquiry.
Senior Deputy Inspector General of Police Asanka Kuruwita presented an investigation report to the committee yesterday. According to the report, Sri Lanka illegal fund transfers amounted to about US$715 million from 2023 onwards.
Investigators said those involved transferred the money abroad while posing as companies importing goods.
State and private banks processed the remittances as legitimate payments for imports. However, the corresponding goods never entered Sri Lanka.
The report described the transactions as part of illegal smuggling operations that used false import declarations to move money overseas.
Weaknesses Across Key State Systems
The committee heard that weaknesses within the banking system helped facilitate the large-scale outflow.
Gaps in Customs procedures and the operations of the Import and Export Department under the Ministry of Finance also reportedly enabled the transactions.
Members extensively discussed how these institutional failures allowed Sri Lanka illegal fund transfers to continue under the appearance of normal import payments.
The committee focused on stronger monitoring, improved coordination and tighter controls across banks, Customs and import authorities.
Its investigation will now examine how the transactions passed through existing safeguards and what measures authorities must introduce to stop similar smuggling networks.
