Security strengthened to prevent recurrence of financial fraud: Central Bank

14-May-2026

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Governor of the Central Bank of Sri Lanka, Dr. Nandalal Weerasinghe, has stated that security mechanisms have been strengthened in collaboration with the Ministry of Finance to ensure that the alleged fraud involving the transfer of USD 2.5 million to an Australian lender through the Treasury does not occur again.

He made these remarks while addressing a press conference held at the Central Bank auditorium in Colombo.

Continuing his remarks, the Governor said that the Ministry of Finance and the Central Bank are currently reviewing existing procedures and using their expertise to further strengthen safeguards to prevent such incidents in the future.

He also clarified that as the government’s bank, the Central Bank is not directly responsible for verifying and altering account holders’ payment instructions. He said the Central Bank’s limited responsibility is to proceed with transactions once the relevant account details and payment processes have been duly verified.

“For example, if you instruct that money be transferred from your bank account to another account, it is the responsibility of the relevant bank to verify the account number. If the system validates it, the payment is made. Beyond that, the bank has no right to alter the instructions you have provided,” he explained.

He further stated that banks do not have authority to change customer instructions, and that post-transfer confirmation is generally handled by the institution receiving the funds.

The Governor added that reports regarding the fraudulent transfer would have been received by the relevant institution in Australia.