By: Staff Writer
October 14, Colombo (LNW): Sri Lanka’s precipitous slide in the 2025 Global Fraud Index marks a moment of reckoning for its financial and digital governance systems. According to the latest report by Sumsub, in partnership with Statista and the Digital Assets Association (DAA) Singapore, Sri Lanka now ranks 103rd out of 112 countries, placing it among the top five Asia-Pacific states most exposed to fraud risk.
This represents a sharp drop from its 94th position in the previous edition, highlighting a significant deterioration in the nation’s fraud resilience. Only Bangladesh, India, Indonesia, and Pakistan rank lower in the region, underscoring the extent of Sri Lanka’s vulnerability in fraud prevention and institutional oversight.
The Global Fraud Index goes beyond counting fraud incidents. It evaluates each country based on four key dimensions: fraud activity, resource accessibility, government intervention, and economic health.
Sri Lanka’s poor showing suggests weaknesses in at least two of these areas government intervention and economic health where regulatory frameworks, enforcement capacity, and institutional responsiveness appear to have fallen behind the rapid pace of digital transformation.
The report warns that markets undergoing swift digital adoption are particularly exposed when governance mechanisms and fraud prevention systems lag. Asia-Pacific as a region itself has fallen from third to fourth place globally in fraud protection, revealing that even relatively developed economies are struggling to keep pace with emerging threats.
Sri Lanka’s deteriorating position in this index carries serious implications for its economy and reputation. Investor confidence, already fragile, may weaken further as global capital tends to shy away from markets with weak governance and high fraud exposure.
Such a reputation can translate into higher risk premiums for borrowing, reduced appetite for foreign direct investment, and slower inflows into critical sectors like digital finance and technology.
Businesses operating within the country may also face increased compliance and operational costs, as they are compelled to invest more in cybersecurity systems, due diligence, and fraud insurance. For the financial sector, rising exposure to fraud and related risks could lead to higher non-performing assets, increased write-offs, and an erosion of public confidence in digital financial platforms.
The ranking also places new pressure on policymakers to strengthen anti-fraud measures through legislative reform, institutional upgrades, and public-private collaboration.
Without clear deterrents and efficient enforcement mechanisms, fraud risk will continue to undermine Sri Lanka’s efforts to position itself as a credible investment and financial hub. Enhanced coordination between regulatory authorities, banks, fintechs, and technology providers is crucial to building a real-time defense network against evolving threats.
Recovering from this setback will require a multi-layered approach. The government must modernize its fraud detection and investigative systems through advanced technologies such as artificial intelligence and machine learning, which can identify suspicious activities at scale and speed. Strengthening transparency, accountability, and whistleblower protections will also be key to rebuilding trust.
Beyond enforcement, the health of the broader economy remains integral to long-term improvement stable macroeconomic conditions and reduced corruption tend to limit both the motivation and opportunity for fraudulent activity.
Sri Lanka’s decline in the Global Fraud Index is a warning sign that governance, regulation, and technology must evolve together. The fall is not irreversible, but reversing it will demand sustained political will, institutional integrity, and private-sector engagement. If the country acts decisively now, the setback could serve as a catalyst for reform and modernization, restoring confidence in its financial systems and ensuring resilience in an increasingly digital and interconnected world.
Sri Lanka Slips into Asia’s Top Fraud-Risk Nations
Former French president Nicolas Sarkozy ordered to go to jail next week
Sarkozy must go to La Santé prison in Paris after conviction over scheme to obtain election funds from Gaddafi regime
The Guardian: The former French president Nicolas Sarkozy has been ordered to go to jail in Paris next week after a court last month sentenced him to five years in prison for criminal conspiracy over a scheme to obtain election campaign funds from the regime of the late Libyan dictator Muammar Gaddafi.
Sarkozy, who was the rightwing president of France between 2007 and 2012, was summoned to meet state prosecutors on Monday. They told him he must present himself at the entrance of La Santé prison in the south of Paris on 21 October to begin his sentence.
The 70-year-old will be the first French postwar leader and the first former head of a European Union country to go to jail. He had already become the first former French head of state forced to wear an electronic tag after being convicted in a separate case of corruption and influence peddling over illegal attempts to secure favours from a judge. In that case, he was given a one-year jail term but was able to serve it with an electronic tag worn around the ankle. He wore the tag for three months before being granted conditional release.
Sarkozy, who denied wrongdoing and having being part of a criminal conspiracy to seek election funding from Libya for his victorious 2007 presidential campaign, has appealed against his conviction. A new trial is expected in about six months. But the nature of Sarkozy’s prison sentence means he must go to jail as his appeal process plays out.
Sarkozy was reported to have hosted 100 friends and former collaborators in Paris last week at a sort of goodbye party before going to prison. Le Figaro said he had told guests he was innocent and should never have been found guilty. Talking about prison, he reportedly said: “I will ask for no advantages. When there is a cross to bear, you must bear it to the end.”
Sarkozy is expected to have his own individual prison cell, with one hour’s exercise a day and three visits a week.
La Santé prison has held some of Frances’s most famous prisoners in its 158-year history, including the terrorist Carlos the Jackal and the war criminal Maurice Papon. Sarkozy is likely to be held in a special wing for vulnerable prisoners, which some call the VIP wing.
It affords more privacy to prisoners, who are placed in individual cells of 9 sq metres and kept separate from other prisoners when exercising. Patrick Balkany, the former rightwing mayor of Levallois-Perret and one-time friend of Sarkozy, was held in that wing in 2019 after a conviction for tax fraud. He described to Paris Match how the isolation was psychologically demanding, but it spared him from being photographed by other prisoners.
Sarkozy was found guilty of criminal conspiracy but acquitted of three separate charges of corruption, misuse of Libyan public funds and illegal election campaign funding. The public prosecutor had told the court that Sarkozy entered into a “Faustian pact of corruption with one of the most unspeakable dictators of the last 30 years” to gain election funding from Gaddafi.
Outside court, after judges handed down their guilty verdict, Sarkozy had said: “If they absolutely want me to sleep in jail, I will sleep in jail, but with my head held high.”
After he enters jail, Sarkozy has the right, like any prisoner, to petition the appeals court for his release. But he will remain in prison until judges give their decision, which could take about two months.
Venezuela closes embassy in Oslo after opposition leader awarded Nobel peace prize
María Corina Machado has made downfall of Maduro regime in Venezuela her mission
The Guardian :Norway’s foreign ministry has said that Venezuela has closed its embassy in Oslo without giving a reason, days after opposition leader María Corina Machado was awarded the Nobel peace prize.
“We have been informed by the embassy of Venezuela that it is shutting its doors and no reason has been given,” the foreign ministry spokesperson, Cecilie Roang, told AFP.
“It is regrettable. Despite our differences on several issues, Norway wishes to keep the dialogue open with Venezuela and will continue to work in this direction,” she said.
According to the Verdens Gang daily, which revealed the information, the embassy services were no longer answering the phone on Monday afternoon. Its numbers had been disconnected, AFP observed in the evening.
The news comes three days after Machado was awarded the Nobel peace prize in Oslo. She has made the downfall of the Chavista regime in Venezuela her mission.
Machado had been prevented from running in the 2024 presidential election, in which the incumbent, Nicolás Maduro, was declared the winner despite opposition protests.
Machado was honoured “for her tireless work promoting democratic rights for the people of Venezuela and for her struggle to achieve a just and peaceful transition from dictatorship to democracy,” said Jørgen Watne Frydnes, the chair of the Norwegian Nobel committee in Oslo.
On Sunday, Maduro, without mentioning Machado’s prize, referred to the 58-year-old laureate as a “demonic witch”, a term often used by the government.
“We want peace, and we will have peace, but peace with freedom, with sovereignty,” Maduro said at an event commemorating the discovery of the Americas, celebrated in Venezuela as Indigenous Resistance Day.
Machado supports US military manoeuvres in waters near Venezuela. She dedicated her Nobel prize “to the suffering people of Venezuela” and to Trump, who also was nominated for the award.
During an appearance on Saturday on Fox News, Machado hailed Trump.
He “deserves” the award, she said, “because not only has he been involved in resolving eight wars in just a few months, but his actions have been decisive in bringing Venezuela to the threshold of freedom”.
CG Corp Global Chairman meets Tourism Minister
DailyFT : Major Union Bank shareholder, CG Corp Global Chairman Dr. Binod K. Chaudhary (second from left), who is also a leading investor in several tourism-related ventures, met with Foreign Affairs and Tourism Minister Vijitha Herath to discuss potential new tourism investments and other related investments in Sri Lanka. He was accompanied by (from left): CG Corp Global Managing Director and Union Bank Deputy Chairman Nirvana Chaudhary and Union Bank Chairman and Employers’ Federation of Ceylon Chairman Dinesh Weerakkody.
Soaring Share Prices of DIMO Stir Market Concerns Amid Tender Allegations
October 14, Colombo (LNW): The recent and dramatic surge in the share price of Diesel and Motor Engineering PLC (DIMO) on the Colombo Stock Exchange has sparked intense debate among market participants and financial observers.
While a significant government procurement process for buses appears to be driving this increase, growing concerns suggest the possibility of underlying financial misconduct.
DIMO’s share price, which stood at approximately Rs. 1,400 only a few weeks ago, has now surpassed Rs. 2,400 — an all-time high for the company.
At the heart of this market frenzy is a government tender for the supply of low-floor buses, scheduled to be opened on October 17. The market widely anticipates that DIMO is the frontrunner to secure this multi-billion-rupee contract. Many investors are betting that winning such a substantial project would greatly enhance the company’s future earnings and profitability.
However, the legitimacy of this sharp price escalation has come under scrutiny. Several industry competitors are reportedly preparing to formally challenge the tender process.
Serious Allegations Levelling
They allege that the tender’s technical specifications have been tailored to align exclusively with the models supplied by DIMO, effectively excluding other qualified bidders. According to these critics, this represents a serious breach of competitive fairness and raises the possibility of collusion or procedural bias.
In parallel with these accusations, there is increasing suspicion that the market may be experiencing manipulation by parties with advance, non-public knowledge of the tender’s likely outcome. The implication is that individuals within government circles, DIMO, or associated entities might be engaging in insider trading — acquiring shares ahead of the official tender announcement in order to benefit financially from confidential information.
Under Sri Lankan law, such behaviour constitutes a grave financial offence. Insider trading compromises the integrity of the market, undermines investor trust, and violates the principles of transparency and fairness.
The Securities and Exchange Commission of Sri Lanka (SEC), together with the Colombo Stock Exchange, is anticipated to launch a formal investigation into the unusual trading activity and share price volatility.
Meanwhile, two opposition political figures are reportedly gathering information to publicly address the matter, and have sought the input of several automotive industry specialists, confirmed knowledgeable sources.
Parliamentary Motion Seeks to Extend Retirement Age for Judges in Higher Judiciary
October 14, Colombo (LNW): A motion advocating for the extension of the retirement age for judges serving in Sri Lanka’s higher judiciary has been listed in the latest Parliamentary Order Book Supplement.
This initiative appears in Supplement to the Order Book No. 2, released on 10 October, and comes in the form of a private member’s motion submitted by President’s Counsel and Member of Parliament Faizer Musthapha.
Citing international practices where judicial retirement ages tend to be higher, the MP has argued for aligning Sri Lanka’s retirement thresholds with global standards. The proposal outlines a series of increases across three judicial levels: raising the retirement age for Supreme Court judges from 65 to 67 years, for Court of Appeal judges from 63 to 65 years, and for High Court judges from 61 to 63 years.
The motion is expected to be taken up for debate in Parliament following the conclusion of the upcoming budget discussions, likely next year.
Although this particular proposal has been introduced by an opposition MP, there had been prior speculation within political circles suggesting that the government itself was considering similar measures to extend the retirement age of both senior judges and the Attorney General.
Hotel group boss says Sri Lanka must rebrand as a value destination
The Minor International Group CEO insisted the country should not be positioning itself as a cheap destination
Natalie Wilson (Independent)
Sri Lanka has been urged to move beyond “discount-led tourism” to focus on value over price.
Minor International Group CEO Dillip Rajakarier said that the country should not be positioning itself as a cheap destination in his keynote speech at CA Sri Lanka’s 46th National Conference this week, reported Sri Lankan outlet Daily FT.
He described Sri Lanka as a “living museum, wellness sanctuary, and adventure playground that can win on authenticity if the service chain works”.
In recent years, terrorism, political instability and a financial crisis have tested the Indian Ocean nation to its limits.
Visitor numbers to Sri Lanka starting declining in 2019 following a series of bomb attacks, and from 2022 the country saw its worst economic emergency since gaining independence from Britain in 1948.
Sri Lanka is back on the tourist map, but it is still seen as an affordable travel destination, with rooms from around $60 (£45).
“For $60, I cannot travel from London to Birmingham”, added the Minor CEO.
Rajakarier said the country needs to invest in infrastructure, service and sustainability to rebrand its tourism to travellers.
According to the Sri Lanka Tourism Development Authority, in 2024, the country welcomed 2.05 million tourists with a total of 1.2 million tourists in the first six months – a growth of 61.6 per cent compared to the same period in 2023.
“We talk about 2 million tourists. That does not add to GDP unless it is value tourism,” said Rajakarier.
Alongside high-adrenaline adventures such as white water rafting on the Kelaniya Ganga river and climbing in the Kodigahakanda Sanctuary, Sri Lanka’s natural landscapes with golden beaches and tea estates, as well as wildlife-spotting and a focus on wellness, result in a rich tourism offering.
Visitors are often drawn to the Cultural Triangle in the centre of the island, with a number of Unesco World Heritage sites, including the Sacred City of Anuradhapura, the Sigiriya fortress and the Ancient City of Dambulla.
Following a recent delay on arrival in Colombo, due to multi-use business-class lanes, Rajakarier added: “This is not seamless tourism. This is painful tourism,” he added,
The hotel CEO called for a more powerful national brand to encourage visitors. He said: “Tourists do not buy hotels. They buy a story”.
Massive Drug Haul Linked to Colombo-Bengaluru Route Uncovered by Indian Authorities
October 14, Colombo (LNW): Indian anti-narcotics officials have intercepted a large consignment of illegal drugs believed to have been trafficked from Colombo to Bengaluru, seizing narcotics valued at approximately Rs. 500 million.
The operation, led by the Narcotics Control Bureau (NCB), has resulted in the arrest of three individuals, including a Sri Lankan national suspected to be a key figure in the trafficking network.
According to reports from Indian media, the NCB seized 45.4 kilogrammes of high-grade hydroponic cannabis—commonly referred to as hydro cannabis—and 6 kilogrammes of psilocybin mushrooms, a hallucinogenic substance categorised as a controlled psychedelic drug in many jurisdictions.
The investigation was triggered by intelligence pointing to the smuggling of hydroponic cannabis from Thailand to Bengaluru via transit routes, including Colombo. Acting on this tip-off, NCB officers ramped up security checks at Kempegowda International Airport in Bengaluru.
On October 09, two passengers arriving from Colombo were detained after their luggage was found to contain 31.4 kilogrammes of hydro cannabis and 4 kilogrammes of psilocybin mushrooms. The narcotics were meticulously concealed in approximately 250 sealed food tins, a method designed to evade routine inspections.
Information extracted during the interrogation of the initial suspects led authorities to a third individual, identified as a Sri Lankan national believed to have played a coordinating role in the operation. He too had arrived via a flight from Colombo and was apprehended carrying an additional 14 kilogrammes of hydro cannabis and 2 kilogrammes of psilocybin mushrooms.
Investigators say the arrests mark a significant breakthrough in ongoing efforts to dismantle international drug smuggling networks operating through South Asia. Authorities are now working to determine the full extent of the operation, including any connections to regional or transnational drug cartels.
The NCB has reiterated its commitment to intensifying surveillance at key transit points and has urged greater cross-border cooperation in tackling the growing challenge of synthetic and hydroponic drug trafficking across the region.
Sri Lanka Sees Continued Growth in Tourist Arrivals as October Figures Climb
October 14, Colombo (LNW): Sri Lanka’s tourism sector continues its upward trajectory, with over 62,000 international visitors recorded in just the first 12 days of October, according to figures released by the Sri Lanka Tourism Development Authority (SLTDA).
The latest data reveals that India remains the dominant source market, contributing 18,299 tourists during this period—nearly 30 per cent of all arrivals. China followed with 5,417 visitors, while 4,874 travellers arrived from the United Kingdom. Germany accounted for 3,804 arrivals, and 2,954 Australians also made their way to the island nation this month.
Cumulatively, tourist arrivals for 2025 have now reached 1,788,235, reflecting growing international interest in Sri Lanka as a travel destination. India continues to lead with 292,633 arrivals so far this year, followed by the United Kingdom (166,767), Russia (125,035), Germany (110,792), and China (107,007).
The rise in visitor numbers signals a robust recovery for the tourism industry, which has faced multiple challenges in recent years. September alone saw 158,971 arrivals, marking a 30.2% increase compared to the same month in 2024—a promising indicator ahead of the peak holiday season.
United States Updates Travel Advisory for Sri Lanka, Urges Heightened Caution
October 14, Colombo (LNW): The United States has revised its travel guidance for Sri Lanka, issuing an updated advisory that places the island nation under a Level 2 classification—urging travellers to exercise increased caution.
Released by the U.S. Department of State, the advisory highlights a number of concerns for prospective visitors, including the potential for civil unrest, the lingering threat of terrorism, and the continued presence of landmines in certain areas.
The notice reflects a shift in how Sri Lanka is currently assessed in terms of travel risk, with officials advising that while the country remains a viable destination, travellers should remain alert to developing situations, particularly in regions with a history of conflict or political tension.
The updated advisory includes new cautionary indicators, signalling that the broader global climate—as well as domestic conditions—are being closely monitored by U.S. authorities.