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Finance Ministry official found dead amid probe into $ 2.5 million cyber fraud

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By The Pulseline News Desk

A senior official attached to the External Resources Division (ERD) of the Ministry of Finance was found dead in Kuliyapitiya today (30 April), deepening concern over an ongoing investigation into a major cyber fraud involving public funds.

Police said the official, who had been suspended days earlier along with three other senior figures from the Ministry of Finance, is suspected to have died by suicide. The death comes as authorities intensify inquiries into the misappropriation of $ 2.5 million that had been allocated for an external debt repayment to an Australian creditor.

The victim had been serving in the ERD, which is responsible for managing foreign funding, loans, and debt servicing arrangements. He was among four officials interdicted in late April pending the outcome of a disciplinary investigation.

Expanding probe

The case has drawn significant public attention due to the scale of the financial loss and the sensitive nature of Sri Lanka’s external debt obligations. The suspended group includes two officials from the ERD and two from the Public Debt Management Office (PDMO), another key institution tasked with overseeing the country’s debt portfolio.

Investigators believe the funds were diverted through a sophisticated cyber operation, raising concerns about vulnerabilities in government financial systems. Authorities have not yet disclosed the exact method used in the fraud, but early indications suggest a possible breach involving email or payment authorization processes.

The Criminal Investigation Department (CID), which is leading the criminal probe, had previously summoned the deceased official to provide a statement. However, he had failed to appear as requested, according to police sources.

Discovery in Kuliyapitiya

The body was discovered in Kuliyapitiya, a town in Sri Lanka’s Northwestern Province. Local police have launched an investigation into the circumstances surrounding the death, though initial findings point toward suicide. A post-mortem examination is expected to confirm the cause.

Law enforcement officials say they are continuing to gather evidence related both to the death and the broader financial fraud case.

Broader implications

The incident comes at a time when Sri Lanka remains under intense fiscal pressure following its recent economic crisis and sovereign debt restructuring efforts. Institutions like the ERD and PDMO play a central role in negotiating with international creditors and ensuring timely debt servicing, making the alleged fraud particularly serious.

Financial analysts note that even isolated breaches can have outsized consequences, potentially undermining creditor confidence and complicating ongoing negotiations with lenders.

Calls for accountability

The government has pledged a full investigation into both the cyber fraud and any systemic lapses that allowed it to occur. Officials have also indicated that cybersecurity protocols within key financial departments will be reviewed and strengthened.

Meanwhile, the death of the suspended official adds a human dimension to the unfolding scandal, raising questions about pressure faced by public servants caught in high-stakes investigations.
Authorities have urged the public to avoid speculation while investigations remain ongoing.

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