Suspect taken into custody in connection with multi million dollar financial fraud

Multi-Million Dollar Financial Fraud Uncovered; Suspect Arrested for Money Laundering via 89 Companies

A suspect allegedly involved in a large-scale financial fraud operation, including money laundering through 89 shell companies, has been arrested by officers of the Financial Crimes Investigation Division (FCID) of the Sri Lanka Police.

The suspect is accused of orchestrating an extensive scheme by establishing fake companies and bank accounts, and fabricating forged documentation to unlawfully transfer Sri Lanka’s foreign exchange reserves abroad on behalf of various individuals. The arrest was made on 19.06.2026 in the Periyamulla area within the Negombo Police Division. The arrested individual is a 35-year-old resident of Wellawatte.

Subsequent in-depth investigations have revealed that the suspect allegedly deposited proceeds derived from drug trafficking into company accounts and systematically remitted the funds to overseas destinations. It has further been uncovered that he manipulated import values to evade customs duties and taxes, while channeling payments to foreign entities under the guise of fictitious import transactions. Authorities have also confirmed that assets and properties were acquired using illicit funds, constituting serious offences under the Prevention of Money Laundering Act.

The investigation was initiated following a complaint submitted to the Inspector General of Police by Sri Lanka Customs. Findings indicate that between 01.01.2023 and 15.09.2025, imports were declared through 89 locally registered companies. However, it has been established that significant foreign currency transactions were carried out via the Telegraphic Transfer (TT) system through the domestic banking network without any actual importation of goods.

Further investigations are being conducted by the Financial Crimes Investigation Division.