Forex Fraud : Ravi calls to summon all regulatory bodies before CoPF

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Published: 2026-06-29 15:16:32 | Added: 2026-06-29 17:31:05 | 2 views

MP Ravi Karunanayake has made a written request calling for all regulatory authorities responsible for the recently uncovered US$1 billion (nearly Rs. 340 billion) systemic foreign exchange fraud to be summoned immediately before the Committee on Public Finance (COPF).

The alleged fraud was recently disclosed by President Anura Kumara Dissanayake and Minister of Public Security Ananda Wijepala.

In a letter sent today (29), Karunanayake described the matter as a systemic collapse of the country’s entire banking system.

He urged the Chairman of the COPF to make a cross-institutional investigation into the fraud the primary agenda item at the Committee’s next sitting.

According to the letter, the country’s wealth had been siphoned overseas over a two-year period through fraudulent telegraphic transfers (TTs) and fictitious advance payments without any corresponding imports being made.

Karunanayake further stated that the failure of the Bank Supervision Department (BSD) and the Financial Intelligence Unit (FIU) of the Central Bank to exercise their extensive statutory powers while 26,108 fraudulent TT transactions were carried out through 227 bank accounts across 13 commercial banks represented a serious failure of the entire regulatory framework.

He also highlighted the following key aspects of the alleged financial fraud:

Four of the most alarming aspects of the fraud

Organised shell company network

Investigations have confirmed that 105 shell companies were established using bank accounts fraudulently opened in the names of 36 low-income individuals.

Within just six months, these entities allegedly transferred Rs. 12.89 billion out of the country through 953 transactions before being dissolved.

Karunanayake said this amounted to a complete breakdown of banks’ Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.

Involvement of bank managers

According to the President’s disclosure, managers at certain commercial bank branches had directly facilitated the fraud.

Karunanayake stressed that investigations should also determine whether an organised internal network enabled the fraudulent activities to continue even after those managers had been transferred to other locations.

Cryptocurrency and capital flight

Karunanayake noted that during a COPF meeting held on 21 January 2025, he had already warned about tax evasion and capital flight arising from the absence of regulation governing cryptocurrencies.

He said investigators should examine the direct link between these trade-based frauds and unregulated digital currency systems.

Failure of data integration

He also pointed out that the absence of real-time data integration between foreign payment records maintained by commercial banks and actual import data held by Sri Lanka Customs had enabled those responsible to evade detection for nearly two years.

Parties that should be summoned before COPF immediately

Karunanayake argued that the multi-billion-rupee fraud should not be dismissed as a mere administrative lapse and proposed summoning the following officials before the Committee to ensure accountability:

The Governor of the Central Bank of Sri Lanka, together with senior officials of the Bank Supervision Department (BSD) and the Financial Intelligence Unit (FIU).
The Controller General of Imports and Exports and the Director General of Sri Lanka Customs.
The Chief Compliance Officers of the 13 commercial banks through which the fraudulent transactions were carried out.

‘Failure of public accountability’

Karunanayake further stated that, rather than merely conducting investigations after losses have occurred, Sri Lanka requires a robust regulatory system managed by competent professionals.

He warned that if Parliament failed to promptly initiate this institutional cross-investigation by exercising its constitutional oversight powers through the Committee on Public Finance, it would amount to a failure of public accountability.