Investigators say 36 companies were allegedly used to transfer foreign currency overseas for imports that never arrived
Four officials attached to private commercial banks have been further remanded until September 3 in connection with an alleged scheme through which nearly US$1 billion was transferred out of Sri Lanka using purportedly fraudulent import documentation.
Colombo Chief Magistrate Asanga S. Bodaragama issued the order after the suspects were produced before court on Thursday. A fifth suspect connected to the investigation was also further remanded.
Investigators allege that businessman Jeffrey Mohamed established approximately 36 companies claiming to import goods into Sri Lanka. Bank accounts were then reportedly opened in the companies’ names and substantial foreign-currency payments transferred overseas.
The corresponding goods were allegedly never imported.
The investigation has acquired national significance because the alleged transfers occurred while Sri Lanka was experiencing a severe foreign-exchange crisis, imposing import restrictions and asking citizens and businesses to endure shortages.
One of the bank officials is alleged to have been connected to transfers amounting to approximately US$5.5 million. The allegations have not been proved, and the suspects remain entitled to the presumption of innocence.
Nevertheless, the inquiry now extends beyond the conduct of a single businessman or group of companies. Commercial banks are not passive conduits. They operate compliance departments, transaction-monitoring systems and procedures governing foreign-exchange payments, customer verification and import documentation.
If the amount alleged by investigators is accurate, it will be necessary to establish how the transactions passed through the banking system, which internal warnings were generated, whether suspicious-transaction reports were filed and what action-if any-was taken by regulators.
Sri Lanka cannot investigate the customers while treating the institutional gatekeepers as incidental witnesses. The central issue is not merely who presented the documents. It is who examined, authorised and processed them.
