Sri Lanka’s creditors are unlikely to classify the recent USD 2.5 million Treasury fund diversion incident as a technical debt default, Deputy Minister of Finance Anil Jayantha Fernando told Parliament today, citing advice from the government’s financial and legal advisors involved in the debt restructuring process.
Responding to questions raised by Opposition Leader Sajith Premadasa, Fernando said the incident is likely to be treated as a cybercrime matter rather than a failure or refusal by the Sri Lankan government to repay its debt obligations.
“Although the funds remitted by Sri Lanka were not received by the Australian creditor, this does not indicate an inability or hesitation by the government to repay debt,” Jayantha said. “Given the close relations between Sri Lanka and Australia, and because this is a cybercrime incident, advisors have informed us that Australia and Paris Club members are unlikely to consider this a debt default,” he said.
Fernando said debt restructuring advisors had been consulted to determine whether the incident could be classified as a technical default, while investigations were continuing to establish the nature of the fraud.
According to the timeline presented in Parliament, Fernando said the Sri Lanka Computer Emergency Readiness Team (CERT) was informed of the matter on Jan. 9, 2026, while the Criminal Investigation Department (CID) was copied on the same day.
Australia Export Finance, the creditor involved, informed Sri Lankan authorities on March 23 that the funds had not been received, he said. The following day, the Director General of the External Resources Department lodged a written complaint with the CID, while the Financial Intelligence Unit (FIU) of the Central Bank was informed on April 1.
Fernando rejected allegations that the government had withheld information from Parliament regarding the incident.
“There was no attempt to avoid reporting facts to Parliament,” he said, adding that authorities decided to wait until more information became available through investigations, particularly regarding possible officials involved and internal control issues.
He said all findings would eventually be presented to Parliament.
Premadasa questioned why Parliament had not been informed earlier, given the timeline of events.
Fernando also addressed public speculation surrounding the death of the ministry official linked to the matter, urging both the opposition and the media to avoid spreading unverified claims.
This came in response to questions raised by Premadasa seeking clarification on claims that the deceased official was the first to identify and report the Treasury fund diversion to authorities.
“Not only does it mislead the public, but it also creates a bad situation,” Fernando said, declining to confirm or deny the claim.
The deputy minister said investigations by the CID, involving the Finance Ministry’s External Resources Department and the Public Debt Management Office were ongoing, adding that the continued service of the ministry secretary would not hinder impartial investigations.
“I am not prepared to present baseless information until investigations are complete,” he added. (Newswire)
Spoke with PM @narendramodi a few days ago about the fuel supply disruptions Sri Lanka is facing due to the Middle East conflict. Grateful for India’s swift support. 38,000 MT of fuel arrived in Colombo yesterday. My thanks also to EAM @DrSJaishankar for his close coordination.
Fuel prices increased from midnight today
Ceylon Petroleum Corporation (Ceypetco) has announced a sharp increase in fuel prices with effect from midnight today.
Accordingly, Auto Diesel has been increased by Rs. 79 to Rs. 382 per litre, while Super Diesel has risen by Rs. 90 to Rs. 443 per litre.
Petrol Octane 92 has been increased by Rs. 81 to Rs. 398 per litre, and Octane 95 by Rs. 90 to Rs. 455 per litre.
Meanwhile, the price of Kerosene has been raised by Rs. 60 to Rs. 255 per litre.
How not to do media innovation with AI: sideline exceptional human talent for algorithmic drivel!
Extremely disappointing to see a newsroom with one of SL’s most talented cartoon desks not used, in favour of AI. Content will always be divisive, this choice didn’t have to be.
Tonight marks the first quota reset under the Fuel Pass system. Your existing allocations will be refreshed by midnight. ⛽️🔁🚗
Alongside the reset, a version upgrade is also expected to roll out to address some more teething issues observed over the past few days.
Electric Vehicle owners were urged to charge vehicles during daytime to ease peak demand. President Anura Kumara Dissanayake noted a 300 MW surge in electricity use between 6 p.m. and 10 p.m. due to EV charging.
President @anuradisanayake says delays in three crude oil shipments have been reported so far. Two shipments of 90,000 MT, along with one private-sector shipment, are expected to be delayed due to ongoing global oil supply challenges, he said. #SriLanka
A stock of 38,000 MT of LP gas has already arrived in Sri Lanka, while a further 33,000 MT is expected to arrive within the next two days, the President said.
“We are neutral but also humanitarian,” President Anura Kumara Dissanayake during a special media briefing says that Sri Lanka will maintain a neutral stance in the ongoing war involving Iran. #SriLanka
“We are not partisan to any country, nor are we subject to any country. We are a sovereign nation. As a government we are responsible to our state, our people and the ocean,” President AKD said adding that the nation and its people will remain the topmost priority.
Sri Lanka Navy personnel are already engaged in the operation to bring the crew safely ashore. A total of 208 personnel will be disembarked at the Colombo Port, including 53 officers, 84 cadet officers, 48 senior sailors, and 23 sailors, he said.
President Dissanayake said that a total of 208 personnel from the Iranian vessel currently near Sri Lankan waters will be disembarked at the Port of Colombo, while the vessel itself will be moved to the Port of Trincomalee.
🚨 BREAKING: U.S. military releases visuals of the torpedo strike on Iranian warship IRIS Dena in the Indian Ocean off Sri Lanka. Nearly 150 Iranian sailors are feared dead in what is being described as the deadliest attack on a warship by a U.S. submarine since World War II.
Thank you Prime Minister @CMShehbaz for ensuring the game we all love goes on. Delighted that the eagerly awaited India and Pakistan match at the ongoing T20 Cricket World Cup in Colombo will proceed as planned.
As co-host of the tournament, Sri Lanka thanks the @ICC and all concerned for their efforts. Sri Lanka hasn’t forgotten the solidarity shown by both India and Pakistan during the 1996 World Cup, when they played in Colombo at a time when others refrained due to security concerns.