Defence Ministry Introduces New Financial Sanctions to Block Terror Funding

23-Apr-2026

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Sri Lanka has strengthened its national security framework aimed at preventing terrorist financing by reinforcing targeted financial sanctions, the Ministry of Defence said in a special statement.

The Ministry stated that Targeted Financial Sanctions (TFS) are being implemented as a key measure to strengthen national security by preventing financial support for terrorism in Sri Lanka. These sanctions are designed to freeze the financial and non-financial assets of individuals and organisations reasonably suspected of being involved in terrorism or terrorist financing.

The sanctions are implemented under Regulation No. 01 of 2012, enacted under the United Nations Act No. 45 of 1968, in line with UN Security Council Resolution 1373 (2012). Once an individual or institution is listed through a Gazette notification, they are prohibited from using, selling, leasing, transferring, or otherwise dealing with assets including bank accounts, financial transactions, land, houses, vehicles, jewellery, and other property.

The authority to impose such targeted financial sanctions lies with the Minister of Foreign Affairs. For administrative and operational purposes, the Defence Secretary has been appointed as the “Competent Authority”. All listing and asset-freezing actions are carried out based on credible evidence and national security assessments.

The Ministry noted that these sanctions help curb terrorism at its source, protect Sri Lanka’s financial system, and ensure compliance with obligations of international bodies such as the United Nations and the Financial Action Task Force (FATF).

To promote transparency and public awareness, the office of the Competent Authority has launched an official website: www.competentauthority.gov.lk. The statement added that Sri Lanka remains committed to safeguarding peace, stability, and national security by preventing terrorist financing.