Millions in Public Funds Including NDB Money Siphoned Overseas Through Fake Import Schemes

Fraudulent Trade Transactions Used to Drain Foreign Exchange From Sri Lanka

Millions of rupees, including funds linked to the National Development Bank (NDB), have been illegally transferred out of Sri Lanka under the cover of fictitious import transactions, according to emerging reports that have sent shockwaves through the country's financial and banking sectors.

How the Scheme Operated

Investigators have revealed that the fraudulent operation involved individuals and entities presenting fabricated or inflated import documentation to facilitate large-scale fund transfers abroad. By disguising illicit capital outflows as legitimate payments for goods being brought into the country, the perpetrators were able to bypass standard financial oversight mechanisms.

The scheme exploited procedural gaps in the trade finance system, raising serious concerns about the adequacy of due diligence processes within Sri Lankan banking institutions and regulatory bodies responsible for monitoring foreign exchange transactions.

NDB Funds Among Those Misappropriated

Among the most alarming revelations is the confirmation that funds connected to the NDB were channelled out of the country as part of this operation. The involvement of a state-linked financial institution has intensified calls for a thorough and transparent investigation into how such a significant breach was allowed to occur.

Authorities have not yet disclosed the full extent of the losses, but sources indicate that the total sum siphoned overseas could run into the millions, compounding Sri Lanka's already fragile foreign exchange position.

Calls for Accountability and Systemic Reform

Financial analysts and civil society groups are now demanding swift action from both law enforcement and regulatory authorities, including the Central Bank of Sri Lanka. Critics argue that cases such as this highlight longstanding weaknesses in the country's anti-money laundering frameworks and trade-based financial monitoring systems.

• Strengthening verification procedures for import documentation
• Enhancing coordination between banking institutions and customs authorities
• Imposing stricter penalties for trade-based money laundering offences
• Conducting independent audits of financial institutions implicated in the scheme

Experts warn that without urgent structural reforms, Sri Lanka remains vulnerable to sophisticated financial crimes that drain the nation's limited foreign reserves and undermine economic recovery efforts.

Investigation Ongoing

Relevant authorities are said to be actively pursuing the matter, with investigations ongoing to identify all individuals and entities involved. The public and financial industry stakeholders alike are watching closely, as the outcome of this case could set a critical precedent for how Sri Lanka deals with complex financial fraud at an institutional level.

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