The Colombo High Court has ordered the confiscation of more than Rs. 201 million held in a private bank account belonging to a Chinese national who was found guilty of engaging in the gem trade without a valid licence.
Delivering the verdict, High Court Judge Adithya Patabendige also imposed a two-year rigorous prison sentence on the accused, suspended for a period of 15 years.
According to the prosecution, the accused had been operating in the gem trade for nearly 12 years without a licence issued by the National Gem and Jewellery Authority. Although he eventually obtained a legal licence, investigations revealed that he conducted unlicensed transactions between October 19, 2017, and February 28, 2018.
The case was filed by the Attorney General’s Department based on an investigation by the Financial Crimes Investigation Unit of the Criminal Investigation Department (CID). The accused faced three charges, including operating without a licence and depositing proceeds from the illicit gem trade into a private bank account.
While the court acquitted the accused of two charges, he was found guilty of money laundering—specifically, depositing funds obtained through unlicensed gem trading.
As part of the sentence, the court ordered the forfeiture of Rs. 201,664,274.20, determined to be the earnings from illegal trading activity.
The case marks a significant ruling in Sri Lanka’s efforts to clamp down on unregulated gem trading and financial crimes involving foreign nationals.
