https://dailynews.lk/2026/08/18/breaking-news/1034297/four-bank-managers-arrested-remanded-over-fraud-of-us-1-5-bn/
our bank managers who were arrested yesterday (17), were remanded until August 20 by the Colombo Additional Magistrate over an alleged large-scale financial fraud involving the illegal transfer of approximately US$ 1.5 billion to foreign countries. The managers were arrested over allegations that a Colombo Fort-based money changer had transferred nearly US$ 1.5 billion overseas without importing any goods into Sri Lanka. During the Court hearing, the Senior State Counsel appearing for the Financial Crimes Investigation Department (FCID) told Court that the fraud had been carried out in 199 instances by allegedly abusing the authority and public trust placed in the bank officials.
According to the prosecution, the funds were transferred through Telegraphic Transfers (TT) under the guise of importing goods into Sri Lanka. The bank officials were allegedly involved in preparing the required documentation, opening accounts and facilitating the approval process for the transactions. However, Customs records had confirmed that no goods had actually been imported in connection with the transfers.
Investigations conducted under the supervision of the Customs Department and the Police Special Investigation Unit have revealed that 36 companies were used to carry out the transactions. Eight individuals had been listed as owners or company secretaries, while several reportedly claimed they were unaware that their identities had been used for the companies. Investigators also found that copies of their National Identity Cards had allegedly been misused to establish and operate the companies.
The prosecution further alleged that certain bank officials had directly assisted the scheme by visiting the office of the main suspect to prepare documents and provide instructions, instead of requiring customers to visit the bank. Police said the conduct raised concerns over alleged violations of Know Your Customer (KYC) procedures and regulations governing the reporting of financial transactions. The main suspect in the case was arrested after allegedly remaining in hiding for more than three months. Investigations are being conducted under the Prevention of Money Laundering Act, the Penal Code and laws governing the reporting of financial transactions.
Counsel appearing for the bank managers argued that their clients had merely collected the required documents from customers and forwarded them to the banks’ head offices for approval. They maintained that the transfers were carried out only after approval from the respective head offices and that branch managers had neither the authority nor the practical ability to verify whether goods had actually been imported. The defence also argued that decisions on opening accounts and transferring foreign currency were made by senior executives and head offices, rather than branch managers.
The FCID told Court that further investigations are underway into the funds transferred overseas, the companies involved, the role of bank officials, and the assets and properties of the suspects believed to have been acquired through illicit means.
Considering the facts presented by both parties, the additional magistrate ordered the suspects to be remanded in custody until August 20.
