Sri Lankan police have revealed that a probe into an alleged foreign exchange fraud involving approximately USD 1 billion in unauthorized overseas transfers began after officers discovered a substantial sum of cash during a routine inspection of a three-wheeler in Peliyagoda.
A routine traffic stop in Peliyagoda has led to the unraveling of what authorities describe as a major foreign exchange operation. According to Western Province Senior Deputy Inspector General of Police Sajeeva Medawatta, officers conducting a standard inspection of a three-wheeler found several hundred thousand rupees, prompting further scrutiny due to the suspicious circumstances surrounding the discovery.
Following this initial lead, investigators uncovered an alleged scheme in which large sums of money were transferred from Sri Lanka to overseas accounts through banking channels without corresponding imports entering the country. Medawatta explained that legitimate foreign currency transfers related to import and export activities are required to follow established procedures, including those overseen by the Central Bank of Sri Lanka. The investigation reportedly revealed that substantial amounts had been moved abroad in violation of these regulations.
The case has expanded significantly since its initial detection by the Western Province Crime Division. The investigation was subsequently transferred to the Central Crime Investigation Division and later to the Criminal Investigation Department, indicating its growing complexity and scope. As of mid-August, authorities have arrested four bank managers and a businessman in connection with the alleged scheme. These individuals were remanded by the Colombo Magistrate's Court and ordered to remain in custody until early September pending further investigation.
