The Sri Lankan government does not expect international creditors to classify the recent diversion of USD 2.5 million in Treasury funds as a technical debt default. Deputy Minister of Finance Anil Jayantha Fernando informed Parliament today that financial and legal advisors believe the incident will be treated as a cybercrime rather than a failure to meet repayment obligations.
Responding to inquiries from Opposition Leader Sajith Premadasa, Fernando clarified that while the funds intended for Australia Export Finance were never received, the situation does not reflect an inability or hesitation to pay. He noted that, given the close relations between Sri Lanka and Australia, and because this is a cybercrime incident, advisors have informed the government that Australia and Paris Club members are unlikely to consider this a debt default.
Investigations are currently underway to determine the exact nature of the fraud. According to the timeline presented to Parliament, the Sri Lanka Computer Emergency Readiness Team (CERT) and the Criminal Investigation Department (CID) were first notified on 9 January 2026. Australia Export Finance subsequently informed Sri Lankan authorities on 23 March 2026 that the remitted funds had not arrived. Following this, the Director General of the External Resources Department filed a formal complaint with the CID on 24 March 2026, and the Financial Intelligence Unit (FIU) of the Central Bank was briefed on 1 April 2026.
Fernando dismissed allegations that the government intentionally withheld information, stating that authorities were waiting for more concrete details regarding internal control issues and potential official involvement before reporting to Parliament. Addressing speculation regarding the death of a ministry official linked to the case—who was allegedly the first to report the diversion—the Deputy Minister urged the media and opposition to avoid unverified claims.
The CID is continuing its investigation alongside the Public Debt Management Office and the External Resources Department. Fernando assured that the investigation remains impartial and that all findings will be presented to Parliament once the probe is concluded.
