Authorities have uncovered approximately Rs. 74 billion transferred across 89 bank accounts in over 10,000 transactions as part of an alleged illegal Undiyal money transfer operation involving USD 1 billion sent overseas.
An investigation into alleged illegal fund transfers has revealed the movement of approximately Rs. 74 billion through 89 bank accounts across 10,151 separate transactions, Cabinet Spokesperson Minister Dr. Nalinda Jayatissa announced at a weekly media briefing. The funds were allegedly transferred overseas through telegraphic transfer systems as part of what authorities are calling an Undiyal operation.
The investigation commenced in January 2026 following a complaint filed by the Additional Director General of Sri Lanka Customs with the Financial Crimes Investigation Division. The first arrest occurred in Negombo on June 19, 2026, with the individual initially held under a seven-day detention order before being remanded in custody. Subsequent investigations led to the apprehension of four bank managers from leading private financial institutions who are suspected of involvement in the operation.
Those arrested have been presented before court under provisions of the Prevention of Money Laundering Act and the Penal Code. The Colombo Chief Magistrate's Court has authorized the disclosure of information connected to 210 bank accounts involved in the investigation. According to Minister Jayatissa's statement, the operation allegedly facilitated the illegal transfer of approximately USD 1 billion to foreign destinations.
Authorities continue their inquiry into the scheme, with investigations focusing on identifying additional individuals and financial institutions linked to the transactions. The case represents a significant action against alleged money laundering operations in Sri Lanka.
