Sri Lanka's Treasury lost $2.5 million of a debt payment to Australia to hackers

Image from Daily FT coverage: Sri Lanka's Finance Ministry says hackers diverted $2.5 million of a debt payment to Australia; officials f…
Image: Daily FT
01 · What happened

In April 2026, Free Lawyers Organisation chairman Maithri Gunaratne, a President's Counsel, wrote to Parliament Speaker Jagath Wickramaratne asking for a parliamentary investigation into $2.5 million of Treasury funds diverted during a foreign debt repayment, part of a $22.9 million bilateral payment to Australia (Daily FT). The Finance, Planning and Economic Development Ministry said hackers breached the computer system of its External Resources Department in connection with a foreign-currency payment in January 2026, that the matter had been reported to SLCERT, the police Computer Crime Investigation Division, the CID and the Central Bank's Financial Intelligence Unit, and that disciplinary action had begun against several officials. The Treasury appointed a Technical Investigation Committee, and Cabinet spokesman Nalinda Jayatissa acknowledged reports that several Treasury officials were suspended. Gunaratne's letter said the current probe is run under an Additional Secretary to the Treasury who also oversees debt repayment, raising concerns over independence, and called for an independent investigation external to the Finance Ministry and Treasury. Opposition MP Namal Rajapaksa called the incident a failure of internal controls at a systemic level.

02 · Sources · 2
Daily FTa complaint was subsequently lodged with the Criminal Investigation Department (CID) and the Financial Intelligence Unit (FIU)... disciplinary actions have been initiated against several officials.
Daily FTMaithri Gunanaratne... requesting a parliamentary investigation... transactions of this magnitude could not have been authorised or executed solely by junior or mid-level officials... MP Namal Rajapaksa characterized this as 'a failure of internal controls at a systemic level.'
03 · Response
Ministry of Finance, Planning and Economic Development (Sri Lanka)

Contacted and made an on-record admission — exact wording not on record.

On-record admission
External Resources Department (Sri Lanka)

Not yet contacted for this story.

Not yet contacted
04 · What happened next · 4
Jul 10, 2026Progress

Parliament's Committee on Public Finance, chaired by Harsha de Silva, tabled a report classifying the $2.5 million loss as cyber fraud aided by lapses at the Finance Ministry and central bank, saying it could not examine any internal conspiracy. Source ↗

Jun 20, 2026Progress

Deputy Finance Minister Anil Jayantha Fernando said a full report had been submitted to the Auditor General, whose department had begun a separate audit of the theft. Source ↗

May 23, 2026Progress

An FBI team arrived in Sri Lanka to help the CID trace the stolen Treasury funds, which investigators said passed through US financial systems via a Delaware-registered front company. Source ↗

Apr 28, 2026Progress

Colombo Fort Magistrate Isuru Neththikumara imposed travel bans on five Public Debt Management Office officials linked to the email correspondence on the diverted payment. Source ↗

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