Cash found in three-wheeler leads to probe into alleged US$ 1 billion forex scam

An investigation into an alleged foreign exchange scam involving the transfer of approximately USD 1 billion overseas without corresponding imports was launched after police discovered a large amount of cash in a three-wheeler in Peliyagoda, a senior police officer said.

Western Province Senior Deputy Inspector General of Police Sajeeva Medawatta said the discovery was made during a routine police inspection and subsequently led investigators to uncover a suspected wider operation involving large-scale transfers of funds overseas through the banking system.

Speaking to a local media outlet, Medawatta said police initially became suspicious after finding several hundred thousand rupees inside the three-wheeler. Further inquiries into the source and circumstances surrounding the money eventually led to a broader investigation.

According to Medawatta, investigators found that substantial amounts of money had allegedly been transferred from Sri Lanka to overseas bank accounts despite no corresponding imports of goods into the country.

He explained that legitimate foreign currency transactions related to imports and exports are subject to established regulatory procedures, including requirements involving the Central Bank of Sri Lanka. However, investigators had identified transactions in which large sums were allegedly sent abroad without the relevant goods being imported.

The investigation was initially handled by the Western Province Crime Division before being transferred to the Central Crime Investigation Division (CCIB) and later to the Criminal Investigation Department (CID).

Four bank managers and a businessman arrested in connection with the investigation were further remanded by the Colombo Magistrate’s Court on August 20. They are scheduled to remain in remand custody until September 3 as investigations continue.

Police are continuing inquiries into the alleged financial transactions and the parties involved in the suspected foreign exchange operation.

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