Urgent Measures Introduced to Prevent Illegal Dollar Outflows
23-Jun-2026.
The government and the Central Bank of Sri Lanka have introduced strict emergency measures to prevent the illegal transfer of US dollars abroad through fraudulent companies registered in Sri Lanka.
The move follows the detection of a foreign exchange fraud valued at approximately US$85 million.
Investigations have revealed the existence of an organised network of 105 local companies that frequently changed names, operated for short periods and then disappeared.
Authorities found that these entities used forged emails and fraudulent financial transactions to transfer foreign currency overseas without importing any goods.
To address loopholes in existing regulations, the Minister of Finance has issued the Import and Export (Control) Regulations No. 06 of 2026.
Under the new rules, commercial banks are prohibited from releasing advance foreign currency payments unless importers are fully verified and registered with Sri Lanka Customs.
Banks are also required to assign unique identification numbers to every import-related foreign currency transaction and immediately share relevant details with Customs authorities.
The Import and Export Control Department has introduced a new monitoring mechanism to ensure that goods corresponding to every dollar transferred overseas are actually imported into the country.
Meanwhile, the Criminal Investigation Department, Financial Crimes Investigation Division and Customs Department have launched joint investigations to identify politicians, public officials and banking personnel who may have assisted the fraudulent operations.
The remaining bank accounts linked to the identified shell companies have also been frozen.
In addition, the Central Bank has introduced new regulations requiring exporters to repatriate export earnings within a shorter time frame.
Authorities believe these measures have contributed to stabilising and strengthening the Sri Lankan Rupee while enhancing the country's financial credibility among international investors and the IMF.
