Sri Lanka probes alleged $2.5 million Treasury fraud

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By Editor_1

COLOMBO – Sri Lankan authorities are investigating an alleged US$2.5 million fraud involving the Treasury, Cabinet Spokesman and Minister Nalinda Jayatissa said.

The funds were reportedly part of a US$22.9 million foreign debt settlement due in September 2025.

Speaking to reporters, Nalinda Jayatissa said he did not have further details on allegations that the funds may have been diverted to a fraudulent account controlled by hackers rather than being transferred to the intended creditor country.

He said the Treasury would clarify whether any officials, including directors and the head of the IT division, had been suspended pending the outcome of the investigation.

Opposition lawmaker Namal Rajapaksa described the reported loss as a serious institutional failure rather than a minor administrative lapse.

“The reported loss through fraudulent payment instructions is not a minor administrative lapse, but a serious breakdown of oversight, internal controls, and institutional safeguards within the Treasury,” Namal Rajapaksa said in a statement.

He said junior officers should not be made “sacrificial lambs” if systemic failures and poor supervision were responsible for the alleged fraud.

“How did fraudulent email instructions bypass verification protocols? Why were safeguards inadequate? Was the proper role of the Central Bank of Sri Lanka undermined in handling such high-value transactions? And who approved a process vulnerable enough to put public funds at risk?” he asked.

Namal Rajapaksa said accountability must begin at the highest levels and called for full transparency into how the incident occurred.

-ENCL

Editor_1
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