October 04, Colombo (LNW): Sri Lanka Police have widened an investigation into suspected foreign exchange violations, with the Financial Crimes Investigation Division (FCID) examining the activities of 17 additional companies accused of sending large sums of money overseas under the pretence of importing goods.
According to investigators, the companies may have been controlled by as few as one or two individuals, prompting authorities to trace the people behind their operations and determine whether they are connected to a wider network.
The inquiry was launched following a complaint from Sri Lanka Customs concerning companies allegedly remitting funds abroad for purported imports that either did not take place or could not be substantiated.
The investigation has already resulted in the arrest and remand of two individuals who were allegedly running 72 companies involved in similar transactions. Authorities are now examining the additional 17 companies to establish whether the same individuals or other members of the network were involved.
Investigators have identified overseas transfers totalling approximately Rs. 190 billion involving the 89 companies between 1 January 2023 and 30 September 2025. Of that figure, around Rs. 130 billion is attributed to the 72 companies already subjected to legal action.
The transactions were reportedly routed through six state and private-sector banks operating in Colombo.
Police have also raised concerns over the destination of some of the funds. The investigation found that money linked to the suspects had been transferred to countries including Brazil, Panama, Mauritius and Madagascar, which authorities regard as high-risk jurisdictions in relation to money laundering.
Investigators said their inquiries had not uncovered corresponding imports into Sri Lanka from those countries despite the outward remittances. This has strengthened suspicions that the transactions may have been used to move funds obtained through unlawful means rather than to settle genuine import bills.
The FCID is currently working to identify the individuals believed to be behind the 17 companies. Once their identities and alleged involvement are established, police are expected to take steps to secure their arrests.
Meanwhile, investigators say the wider probe is already having an impact on suspicious outward remittances. The number of individuals using the Telegraphic Transfer (TT) system to send funds overseas has reportedly fallen by about 90 per cent since the investigation began.
