The CID has told CoPF that 105 companies were used to illegally siphon out US$ 715 million out of the country

An investigation into fraudulent import transactions revealed nearly $715 million was illegally transferred out of Sri Lanka.

The illicit remittances were funneled overseas via roughly 24,300 Telegraphic Transfers (TTs) between January 2023 and March 2026 without any goods entering the country, Criminal Investigation Department (CID) investigators told the Committee of Public Finance.

Investigations have revealed that 105 companies and 55 individuals were involved in the fraud, with 227 bank accounts across 13 banks being utilized.

Context

The revelations were made during a parliamentary Committee on Public Finance (COPF) meeting chaired by MP Dr. Harsha de Silva to review new import-export regulations. 

Head of the CID, Senior DIG Asanga Karawita, presented the evidence following a probe originally triggered by complaints from Sri Lanka Customs.

Lawmakers examined systemic loopholes in inter-agency data sharing and urged strict banking controls to curb money laundering without harming legitimate businesses. 

Findings

CID investigations revealed the illegal network siphoned funds out using forged invoices, fabricated customs documentation, and shell companies.

Police confirmed the illicit money transfer operation is tied to an international money laundering syndicate involving Dubai-based drug traffickers.

One suspect linked to 43 shell companies was arrested, while INTERPOL assisted in extraditing two additional key suspects from Dubai.

New Regulatory Controls

COPF approved Gazette No. 2493/39 requiring advance-payment importers to officially register as "Qualified Importers" with Sri Lanka Customs. 

Commercial banks are now mandated to issue a Unique Identification Number (UIN) for each advance payment transaction and report it to Customs.

COPF also approved Gazette No. 2493/03 requiring export licenses across 55 metal HS codes to curb illegal trade and protect local industries.