The Governor of the Central Bank of Sri Lanka (CBSL) has rejected findings contained in a report submitted by the Secretary to the Ministry of Finance to the Parliamentary Committee on Public Finance regarding the Central Bank’s responsibility in the controversial payment of US$ 2.5 million to an external party.
As a result, the Committee on Public Finance (COPF) has granted the CBSL permission to submit a separate report responding to the allegations and observations relating to the Bank’s role in the transaction.
Speaking to the media following a COPF meeting held in Parliament on 8 June, Committee Chairman Harsha de Silva said the committee would review both the Finance Ministry Secretary’s report and the forthcoming Central Bank report before preparing its own findings.
He said all three reports would subsequently be made public.
De Silva described the incident as a “major fraud” and warned that it remains uncertain whether the lost funds can be recovered. He added that, ultimately, the burden of the loss would fall on the public.
He further noted that a criminal investigation into the matter would be carried out by the Police.
According to de Silva, the transaction had been conducted through an email exchange linked to an expired system. He said the Computer Emergency Readiness Team (CERT) had advised authorities in 2023 to update the system, but the recommendation had not been implemented.
The COPF Chairman also raised concerns over the payment process, stating that there were serious questions surrounding how the transfer was handled. While the Central Bank had informed the Ministry of Finance that the funds had been credited, questions remain as to what actions were taken thereafter, he said.
The payment of US$ 2.5 million to an external party is currently under scrutiny amid allegations of cyber fraud and procedural failures within State institutions.
