Sri Lankan authorities have arrested four private bank officials in connection with an investigation into the alleged illegal transfer of Rs. 74 billion overseas through over 10,000 transactions using 89 bank accounts, Cabinet Spokesman Minister Dr. Nalinda Jayatissa revealed.
An investigation into a large-scale financial crime has led to the arrest of four officials employed at private banks, according to disclosures made by Cabinet Spokesman Minister Dr. Nalinda Jayatissa at a recent Cabinet media briefing. The investigation centres on the alleged transfer of Rs. 74 billion overseas through 10,151 transactions conducted across 89 bank accounts. The probe was initiated following a complaint lodged with the Financial Crimes Investigation Division (FCID) by Sri Lanka's Additional Director General of Customs in January 2026.
The scheme allegedly involved the creation of approximately 36 companies claiming to import goods into Sri Lanka. According to investigators, a key suspect, Jeffrey Mohamed, approached four private banks to open accounts linked to these companies and facilitated the transfer of funds overseas purportedly as payment for imports. However, investigators allege that corresponding goods never entered the country. The transactions were conducted through telegraphic transfers, and authorities are pursuing charges under the Prevention of Money Laundering Act and the Penal Code.
Investigators have alleged that the four arrested bank officials personally assisted with the transactions and received regular payments ranging from Rs. 30,000 to Rs. 100,000 weekly, with one official allegedly receiving approximately Rs. 1 million on a single occasion. The CID also claims the officials failed to conduct required regulatory checks when opening accounts. Defence lawyers for the arrested officials have contested these allegations, arguing that some suspects were junior-level employees whose responsibilities were limited to administrative duties rather than regulatory verification.
The investigation has also examined possible connections to drug trafficking, with authorities suggesting that funds generated through drug-related activities may have been channelled through this financial network. A broader examination identified 89 Sri Lankan-registered companies that allegedly transferred more than Rs. 190 billion overseas. The four arrested officials have been remanded pending further court proceedings.
