By The Pulseline News Desk
Opposition member of parliament (MP) Ravi Karunanayake has called for an urgent parliamentary investigation into what he describes as a “US$1 billion systemic foreign exchange fraud,” warning that Sri Lanka’s financial oversight mechanisms may have failed to detect one of the country’s largest alleged illicit outflows of foreign exchange.
In a letter addressed to the Chairman of parliament’s Committee on Public Finance (COPF), Karunanayake urged the committee to immediately summon key regulatory and enforcement authorities, arguing that Parliament has a constitutional duty to examine the serious allegations raised by President Anura Kumara Dissanayake.
The President, who also serves as Minister of Finance, recently disclosed that Sri Lanka had allegedly lost around $ 1 billion since 2024 through fraudulent telegraphic transfers (TTs) and advance payments for so-called “phantom imports” – transactions in which payments were reportedly made overseas without any corresponding goods entering the country.
Karunanayake said the scale of the alleged fraud demands an immediate institutional response, warning that any delay by COPF would amount to a failure of its oversight responsibilities.
Adding to the concerns, Public Security Minister Ananda Wijepala has revealed that ongoing investigations have uncovered what is believed to be a trade-based money laundering network involving billions of rupees transferred overseas through illicit financial transactions and shell companies.
Against this backdrop, Karunanayake has also called for scrutiny of cryptocurrency-related transactions, recalling that he had previously raised concerns before COPF in January 2025 about the risks posed by unregulated digital currency operations and their potential use in facilitating illegal financial flows.
The former Finance Minister questioned how transactions of such magnitude could have escaped detection by the Central Bank of Sri Lanka’s (CBSL’s) anti-money laundering systems and financial surveillance mechanisms.
To establish accountability and identify regulatory shortcomings, Karunanayake has requested COPF to summon the Governor and senior officials of CBSL, the Controller General of Imports and Exports, the Director General of Sri Lanka Customs, and the Chief Compliance Officers of the 13 commercial banks allegedly linked to the questioned transactions. He also recommended that any additional state agencies or law enforcement institutions considered relevant be called before the committee.
According to Karunanayake, the proposed inquiry should focus not only on determining how the alleged fraud occurred but also on examining possible institutional failures, strengthening financial oversight, and ensuring accountability where regulatory lapses are identified.
He has urged COPF to place the matter on the agenda of its next meeting and commence what he described as a comprehensive institutional examination without delay, arguing that restoring confidence in Sri Lanka’s financial governance requires swift and transparent action.
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