The Criminal Investigation Department (CID) has launched a wide-ranging investigation into fraudulent import documents used before January 2023, following the discovery that nearly US$715 million had allegedly been illegally transferred overseas through 105 fake companies between January 2023 and March 2026.
The investigation is being conducted following a request by the Ministry of Finance and the Central Bank of Sri Lanka.
The CID has so far identified 55 individuals suspected of supporting international money-laundering networks linked to drug traffickers in Dubai, along with 227 bank accounts and around 24,300 telegraphic transfers carried out through banks.
Significant discrepancies have also been identified when comparing information on foreign remittances with actual physical imports among commercial banks, Sri Lanka Customs and relevant ministries.
According to the ‘Sunday Times’, a Deputy Minister has said that although there was high demand for imports when the foreign exchange rate began to depreciate, the goods in question had not actually entered the country. Investigations into the matter subsequently uncovered the large-scale financial fraud.
It has also been reported that in previous cases of similar fraud detected by institutions such as Customs, businesspeople had used political influence to evade legal action.
However, the current investigation is also focusing heavily on the fake companies through which the funds were allegedly transferred.
In addition, a company involved in the sale of steel-related household products is being investigated over alleged money-laundering offences, while a related case is being heard in the High Court.
Against this backdrop, Parliament has passed significant amendments to the Prevention of Money Laundering Act and the Financial Transactions Reporting Act, empowering authorities to freeze secondary assets for 14 days without a court order.
