The Criminal Investigation Department (CID) has launched a wider investigation into suspected fraudulent import transactions that allegedly facilitated the illegal transfer of nearly US$715 million overseas through 105 shell companies between January 2023 and March 2026.
The investigation has been initiated following requests from the Ministry of Finance and the Central Bank of Sri Lanka and will also examine similar transactions that took place before January 2023.
According to the information revealed so far, the CID has identified 55 individuals, 227 bank accounts and around 24,300 telegraphic transfers allegedly linked to international money laundering networks associated with drug traffickers in Dubai.
Investigators have also identified significant gaps in the verification of foreign remittances against actual imports among commercial banks, Sri Lanka Customs and relevant government ministries.
According to a report by The Sunday Times, a deputy minister said the investigation began after authorities found that goods ordered amid high demand for imports and a weakening rupee had not actually arrived in Sri Lanka, despite payments being made overseas.
Unlike previous cases where individuals accused of such fraud allegedly used political influence to avoid legal action, authorities are now investigating the shell companies through which the funds were transferred.
A company involved in the sale of steel-related furniture is also reportedly being investigated for suspected money laundering, with a related case currently before the High Court.
Meanwhile, Parliament has passed amendments to the Prevention of Money Laundering Act and the Financial Transactions Reporting Act, giving authorities the power to freeze secondary assets for up to 14 days without a court order.
