The Sri Lankan government has launched an investigation into a suspected diversion of 2.5 million dollars in Treasury funds during a foreign debt repayment to Australia, amid concerns over financial controls and cybersecurity.

 

The amount was part of a 22.9 million dollar bilateral payment due by September 2025, but authorities say the 2.5 million dollars have not reached the intended creditor. The Finance Ministry confirmed that a cyber breach involving its External Resources Department, linked to a January 2026 foreign currency transaction, may have contributed to the incident.

 

A Technical Investigation Committee comprising senior Treasury officials has been appointed to examine whether fraudulent email instructions led to the misdirection of funds. The case has also been referred to national cybersecurity and law enforcement agencies, including the Financial Intelligence Unit of the Central Bank.