Parliamentary Finance Committee Demands Full Audit and Investigation into USD 2.5 Million Cyberfraud Incident

Sri Lanka's Parliamentary Committee on Public Finance (COPF) has called for a comprehensive audit and thorough investigation into a serious cyberfraud incident that resulted in the loss of USD 2.5 million in public funds, raising significant concerns over the country's financial oversight mechanisms and digital security protocols.

Committee Raises Alarm Over Public Fund Loss

The COPF, which is tasked with scrutinising the management of public finances, has formally flagged the fraudulent transfer of USD 2.5 million as a matter of urgent national concern. The committee has urged authorities to conduct a full forensic audit to determine the exact circumstances under which the funds were transferred and to identify any lapses in internal controls that may have enabled the fraud.

The incident has sparked widespread concern among lawmakers and financial watchdogs, with the committee stressing that accountability must be established and that those responsible — whether through direct action or negligence — must face appropriate consequences.

Calls for Stronger Cybersecurity Safeguards

Beyond the immediate investigation, the COPF has also highlighted the broader need for Sri Lanka's public financial institutions to significantly strengthen their cybersecurity infrastructure. The committee's report underscores that the vulnerability exposed by this incident reflects a systemic gap in the safeguarding of state assets in an increasingly digital financial environment.

• A full forensic and financial audit of the fraudulent transaction has been recommended.
• The committee has called for an independent probe to identify those responsible.
• Strengthening of cybersecurity protocols across public financial institutions has been urged.
• Improved internal oversight mechanisms are being recommended to prevent future incidents.

Accountability at the Forefront

The COPF's intervention signals growing parliamentary pressure on the government to treat cybersecurity threats to public finances with the same seriousness as conventional financial crimes. Lawmakers have emphasised that the loss of public funds of this magnitude is unacceptable and that the Sri Lankan public deserves full transparency regarding the outcome of any investigation.

The committee has made clear that a credible and independent investigation must be carried out without delay, and that its findings must be reported back to Parliament in a timely manner.

The incident is expected to prompt wider discussions within Parliament on the adequacy of existing legal and institutional frameworks governing digital financial transactions and cybercrime response in Sri Lanka.

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