CID Investigates US$715 Million Suspected Import Fraud and Money Transfer Scheme in Sri Lanka
Sri Lanka’s Criminal Investigation Department (CID) has launched a major investigation into a suspected large-scale financial crime operation involving the transfer of approximately US$715 million overseas under the cover of importing goods.
The details were revealed before the Parliamentary Committee on Public Finance by Senior Deputy Inspector General of Police Asanga Karawita, who said investigations are being conducted by the Financial Crimes Investigation Division (FCID) of the CID.
105 Companies Identified in Transactions
According to Karawita, Sri Lanka Customs submitted three reports to the Inspector General of Police regarding suspicious overseas payments made for imports where the goods were allegedly never brought into Sri Lanka.
The reports identified:
- 89 companies in January
- 4 additional companies in February
- 12 more companies in March
A total of 105 companies were identified as being involved in the transactions.
Investigations revealed that these companies had transferred approximately Rs. 214.7 billion, equivalent to around US$715 million, through telegraphic transfers (TTs) between January 2023 and March 2026.
Authorities said no evidence has been found confirming that goods matching those payments were actually imported into the country.
227 Bank Accounts Used for Transfers
CID investigations found that only 55 individuals were connected to the 105 companies identified in the alleged scheme.
Investigators also discovered that:
- 227 bank accounts were used for transactions
- Nearly 24,300 telegraphic transfers were carried out
- 13 major Sri Lankan banks processed the transactions
The banks involved include both state-owned and private financial institutions.
Suspect Linked to 43 Companies Arrested
During the investigation, CID officers identified a key individual linked to one of the companies involved in the alleged operation.
The suspect has been arrested, produced before court and is currently in remand custody.
Investigators found that the suspect was connected to 43 companies and was listed as the owner of those entities.
Those companies alone had transferred approximately US$43 million overseas through telegraphic transfers during the period under investigation.
Forged Documents Used for Transactions
The CID alleges that the suspect collected funds from brokers and used forged documents to support overseas transfers.
Investigators discovered that fraudulent invoices had allegedly been prepared using computers located at premises operated by brokers before being submitted to banks as supporting documents.
Karawita also informed the committee that some transactions may have been carried out with the assistance of certain bank officials.
Alleged Links to International Drug Network
The investigation has also uncovered suspected links between the financial operation and an international narcotics network.
According to the CID, funds belonging to a major drug trafficker operating from Dubai were transferred to the United Arab Emirates through the same mechanism.
Two of the three main suspects based in Dubai have reportedly been brought back to Sri Lanka with assistance from Interpol and remanded.
Investigators stated that information obtained from the suspects indicates that money linked to narcotics trafficking was channelled through individuals in Sri Lanka before being transferred overseas.
Additional Money Transfer Investigation
The committee was also informed about another investigation that began after police discovered Rs. 30 million in cash inside a three-wheeler in the Kelaniya area.
Further inquiries revealed that the money was allegedly being transported for deposit into accounts belonging to another company involved in similar transactions.
CID investigations found that the individuals linked to the case had connections to narcotics-related activities.
A subsequent investigation into the company revealed that nearly US$40 million had been transferred overseas through one state bank and two private banks using a similar method.
CID Continues Financial Crime Investigations
Senior DIG Asanga Karawita said investigations into both cases are continuing under the CID’s Financial Crimes Investigation Division and the Proceeds of Crime Investigation Division.
Authorities are continuing efforts to identify all individuals involved, trace the movement of funds and determine whether the transactions are linked to organised financial crime activities.
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