A 35-year-old resident of Wellawatte has been arrested by the Financial Crimes Investigation Division (FCID) over an alleged foreign exchange fraud involving the transfer of millions of US dollars overseas through companies registered under different names.
The case has drawn attention to the monitoring of foreign currency transactions, import declarations, and financial flows, areas that play an important role in protecting government revenue and maintaining confidence in the financial system.
Police said the suspect was arrested on June 19 in the Periyamulla area of Negombo following an investigation into multiple companies and bank accounts allegedly used to facilitate overseas fund transfers.
According to investigators, the companies are suspected of falsely claiming imports while transferring foreign currency abroad through banking channels.
Alleged Use of False Import Transactions
Police allege that funds linked to drug trafficking were deposited into company accounts before being transferred overseas.
Investigators further suspect that false import transactions were used to avoid customs duties and taxes.
Authorities are also examining whether money generated through the alleged scheme was used to acquire assets and properties in violation of anti-money laundering laws.
The investigation follows information reportedly provided to the Inspector General of Police by Sri Lanka Customs.
89 Companies Under Investigation
According to Police, investigations revealed that between January 1, 2023 and September 15, 2025, a total of 89 local companies had allegedly transferred large amounts of US dollars overseas through Telegraphic Transfers (TTs).
Investigators claim the transfers were made based on importing goods, despite no corresponding imports taking place.
The alleged activity is being examined as part of a wider investigation into foreign exchange violations, customs-related offences, and financial crime.
The case also highlights the importance of verifying import transactions and monitoring cross-border fund transfers, particularly at a time when authorities continue efforts to strengthen oversight of foreign exchange movements and tax compliance.
The Financial Crimes Investigation Division is conducting further investigations.
Last modified: June 21, 2026
