Fraud losses may ultimately be borne by taxpayers: Harsha de Silva

11-Jun-2026

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Parliamentarian Harsha de Silva has warned that if funds lost in a major financial fraud case cannot be recovered, the burden may ultimately fall on taxpayers.

Speaking after a meeting of the Parliamentary Finance Committee, he said the Treasury Secretary had indicated that unrecovered losses would have to be covered using public funds.

He noted discrepancies between the Central Bank and Treasury over responsibility for the alleged USD 2.5 million fraud, with both institutions trading blame.

Investigations have revealed that the fraud was carried out through compromised official email systems that had not been updated for years despite repeated warnings.

De Silva added that the report of the Central Bank will be made public once submitted, while investigations by the Criminal Investigation Department and police are ongoing.