MONETABRIEF - About a billion US dollars had been remitted out of the country through advance payments for purported imports that never arrived in the country, President Anura Kumara Dissanayake said.
Investigations had revealed that the payments had been made at least from 2023, President Dissanayake told parliament.
The money, amounting to around 300 billion rupees could be proceeds of crime like drugs, he said.
Several arrests have been made and some bank officials appear to be involved, as the payments seemed to follow to new branches when managers are transferred, President Dissanayake said.
The government issued new instructions to tighten advance payments for imports last week.
Related : Sri Lanka Tightens Rules on Import Foreign Exchange Payments
Sri Lanka has exchange controls as the central bank is not accountable to forex shortages it creates by injecting liquidity, and people resort to unorthodox methods to remit money even when they are legally earned. (Colombo/June25/2026)