By The Pulseline News Desk
A suspected financial irregularity involving a $2.5 million loan repayment has triggered a multi-agency investigation in the country, after discrepancies were flagged during a routine settlement process, a senior government official told Parliament.
Deputy Minister Anil Jayantha revealed in parliament that the alleged heist came to light only after an officer grew suspicious while handling a repayment to Exim Bank India. The payment, which was part of a foreign loan settlement, is now believed to have been diverted to a third-party account.
According to the Deputy Minister, the repayment process began after invoices were received from Australian Export Finance Ltd. The documentation was subsequently referred to key state institutions, including the External Resources Department, the Public Debt Management Office, and the Central Bank of Sri Lanka (CBSL). While the transaction appeared to have been completed, early findings suggest the funds may not have reached the intended recipient.
The process was reportedly overseen by the late Ranga Rajapaksa from the ERD, whose death has added further complexity to the case. Meanwhile, a separate female officer responsible for coordinating repayments to Exim Bank India had raised concerns after noticing irregularities in email communications linked to the transaction.
“She had received emails from unfamiliar addresses, including one purportedly belonging to another Treasury official, which prompted suspicion,” the Deputy Minister said. Her alert is now seen as the turning point that exposed the alleged misdirection of funds.
Investigations intensify
Authorities have since launched a wide-ranging probe, with technical expertise brought in from the Sri Lanka Computer Emergency Readiness Team (SLCERT) and specialists from the University of Colombo. Investigators are examining whether cyber intrusion, email spoofing, or internal collusion may have played a role in redirecting the payment.
Officials are also reviewing past foreign loan repayments to determine if similar diversions may have gone undetected.
To facilitate an impartial investigation, several Treasury officials have been transferred, a move the government says is intended to prevent interference and ensure transparency.
Background: High-stakes debt management
Sri Lanka’s public debt management has been under intense scrutiny in recent years, particularly following the country’s economic crisis and subsequent restructuring efforts. Foreign loan repayments, often involving multiple institutions and international lenders, require strict verification protocols due to the large sums involved.
The involvement of agencies such as the ERD and the CBSL reflects the layered approval process typically required for such transactions. However, the current case highlights potential vulnerabilities, particularly in digital communication channels used to authorize payments.
Cybersecurity experts have long warned that sophisticated phishing schemes and email impersonation tactics can target government financial systems, especially in high-value cross-border transactions.
A case with wider implications
While the investigation is still in its early stages, the alleged diversion of $2.5 million raises serious concerns about oversight, internal controls, and cybersecurity within key financial institutions.
The government has pledged full transparency as inquiries continue, but the case is already prompting calls for tighter safeguards in managing external debt repayments.
If confirmed, the incident could mark one of the most significant suspected financial breaches involving Sri Lanka’s Treasury in recent years, underscoring the growing risks at the intersection of public finance and digital security.
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