A shocking allegation has emerged suggesting millions in public funds may have been diverted through a cyber breach, raising urgent questions about accountability, financial oversight, and national security within Sri Lanka’s Treasury operations.
The following is based on a formal communication addressed to the Speaker of Parliament by the Free Lawyers Organization, calling for an urgent parliamentary investigation into a potential financial irregularity involving public funds.
April 22, 2026
Honorable Speaker,
Parliament of Sri Lanka,
Sri Jayewardenepura Kotte,
Kotte.
Honorable Speaker,
A serious concern has been raised regarding whether a sum of 2.5 million US dollars belonging to the Treasury has fallen into the hands of a computer hacker, prompting a call for immediate investigation through Parliament.
Sri Lanka, which had been managing external debt obligations, was required to settle an amount of 22.9 million US dollars by the end of September 2025. As part of this broader debt repayment process, a payment of 2.5 million US dollars was reportedly made by the Treasury between December 2005 and January 31, 2026. However, emerging information suggests that this payment may not have reached the intended creditor country and could instead have been redirected to an unauthorized third party, possibly a cyber actor.
In response to the incident, a Technical Investigation Committee was appointed around March 24, 2026, to examine the circumstances surrounding the transaction. So far, administrative action has been taken against several officials, including the suspension of two Deputy Directors of the Treasury, two Directors, and the Head of the Computer Division, all linked to the incident under review.
Historically, foreign debt servicing, including installments and interest payments, had been handled by the Central Bank of Sri Lanka. However, following the enactment of the new Monetary Law, this responsibility was transferred to the Department of External Resources and the State Debt Management Office. As a result, the documentation and execution of this payment fell under the purview of these institutions.
It has been emphasized that a transaction involving such a substantial amount cannot be executed solely by lower level officials. The process would typically require the involvement and authorization of higher ranking officials, including a Deputy Treasury Secretary and the Treasury Secretary, indicating that the chain of responsibility may extend beyond those currently suspended.
Given that Parliament holds the ultimate authority over public finance, concerns have also been raised regarding the independence of the ongoing investigation. At present, the inquiry is reportedly being conducted under an Additional Treasury Secretary who is directly responsible for overseeing debt repayment functions, while simultaneously continuing operational duties within the same department.
Further concern arises from the fact that the Secretary to the Ministry of Finance also serves as the Secretary to the Treasury, creating a potential conflict in ensuring impartiality. It is therefore strongly argued that the investigation should be conducted by an independent body external to the Ministry of Finance and the Treasury.
In light of these developments, a formal request has been made for Parliament to intervene and initiate a comprehensive investigation through an appropriate and credible mechanism, ensuring transparency, accountability, and public trust in the management of national finances.
Yours faithfully,
Signed
President’s Counsel Maithree Gunaratne
Chairman, Free Lawyers Organization
Copies:
All political party leaders and secretaries representing Parliament
Parliamentary Committee on Public Finance
Auditor General and National Audit Commission
Member of Parliament Harsha de Silva, Chairman of the Parliamentary Committee on Public Finance
