Australia says aware of Sri Lanka Treasury $2.5mn breach, coordinating investigations

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By Editor_1
Sri Lanka’s Secretary to the Ministry of Finance Harshana Suriyapperuma speaks during a press conference in Colombo on Thursday (April 23, 2026). Cyber criminals hacked into the Sri Lankan finance ministry's computer system and siphoned off $2.5 million destined as debt repayment to Australia, the government said Thursday - ISHARA S. KODIKARA / AFP

COLOMBO – Australia has said it is aware of the 2.5 million-dollar fraud in Sri Lanka’s Treasury, and local authorities are coordinating with Australian officials assisting the investigation.

Australia’s High Commissioner in Sri Lanka, Matthew Duckworth, said on X Canberra was aware of “irregularities” in payments owed to it.

“Sri Lankan authorities are investigating the matter and are coordinating with Australian officials, who are assisting the investigation,” Duckworth said on X, adding, “Australia remains committed to supporting Sri Lanka’s return to debt sustainability”.

Deputy Finance Minister Anil Jayantha said hackers had impersonated Australia’s export financing agency to fraudulently obtain the funds from a Treasury payment made in January 2026.

The breach occurred after cybercriminals infiltrated systems at the External Resources Department, intercepted official communications and manipulated payment instructions, he said.

The fraud came to light after a second attempt was made to divert payments due to India, prompting a wider review of transactions linked to Sri Lanka’s external debt restructuring, which uncovered the earlier loss tied to an Australian credit line.

Finance Ministry Secretary Harshana Suriyapperuma said four senior officials attached to the Public Debt Management Office had been suspended pending investigations.

Authorities have sought assistance from foreign law enforcement agencies as criminal investigations continue.

The cyberattack marks the largest known theft from a Sri Lankan state institution and comes as the country works to stabilize its economy following the 2022 crisis and sovereign default on US$46 billion external debt.

Sri Lanka established the Public Debt Management Office earlier this year as part of reforms linked to an International Monetary Fund-supported bailout program aimed at restoring fiscal stability and strengthening public financial management systems.

The attack came as Sri Lanka’s central bank and finance ministry launched an advertising blitz in local newspapers earlier this year, warning Sri Lankans not to fall prey to cyber scams.

-ENCL

Editor_1
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