Sri Lanka has strengthened its national security and counter-terrorism financing framework with a renewed focus on Targeted Financial Sanctions (TFS), the Ministry of Defence Sri Lanka said.
Targeted Financial Sanctions are restrictive measures imposed on individuals or entities suspected of involvement in terrorism or the financing of terrorism. These measures are designed to freeze assets, limit access to financial systems, and prevent designated persons or organisations from engaging in any form of financial activity within the country.
In Sri Lanka, the implementation of TFS is carried out in line with United Nations Security Council Resolution 1373 (2001), under Regulation No. 01 of 2012 enacted pursuant to the United Nations Act No. 45 of 1968. Once a designation is published through a Gazette notification under the relevant regulation, a legally binding freezing order takes immediate effect.
This includes the freezing of bank accounts and restrictions on the use, transfer, sale, or leasing of movable and immovable assets, including property, vehicles, jewellery, and other valuables.
The Ministry further noted that the authority to impose Targeted Financial Sanctions lies with the Ministry of Foreign Affairs Sri Lanka. The Secretary to the Ministry of Defence has been designated as the Competent Authority responsible for administrative and operational implementation.
Officials stated that this framework underscores Sri Lanka’s commitment to combating terrorism financing at the national level, with all designations and enforcement actions based on verified intelligence and national security assessments.
Authorities emphasised that TFS is a key component in preventing the flow of funds to terrorist activities, while also strengthening the integrity of the financial system and ensuring compliance with international obligations under the United Nations framework and Financial Action Task Force standards.
To enhance transparency and public access to information, the Office of the Competent Authority has launched an official website where Gazette notifications and related freezing orders are made available.
Officials further noted that terrorist financing often operates through concealed transactions and hidden assets, making robust financial monitoring and enforcement essential. Strengthening the legal and administrative framework for Targeted Financial Sanctions, they added, reinforces Sri Lanka’s commitment to national security, financial stability, and public awareness.
