Colombo, March 13 (Daily Mirror) - Colombo Chief Magistrate Asanga S. Bodagamage observed that due to loopholes in actions carried out by state financial institutions under the Foreign Exchange Act, money in Sri Lanka is being transferred overseas through cryptocurrency transactions.
Accordingly, the Magistrate stated that immediate steps should be taken to prevent such activities and to educate the public and directed that the Central Bank of Sri Lanka be informed in this regard.
The Magistrate further observed that cryptocurrency transactions carried out using modern technology without any approval from the Central Bank of Sri Lanka have taken place without the public having adequate awareness about such activities. The court also noted that incidents of this nature are increasingly being reported before courts.
The Magistrate stated that investigations into such incidents appear to be limited to court proceedings alone and emphasized that the Central Bank being the main financial regulatory authority of the country along with other relevant institutions, should take appropriate measures and educate the public for the welfare of the people and the country.
The Magistrate further noted that the Criminal Investigation Department and the Central Bank should take necessary steps to raise public awareness regarding such financial frauds and implement a proper mechanism to address the issue.
The court also observed that many individuals have taken advantage of loopholes in the Foreign Exchange Act and related procedures to commit financial fraud and that the Central Bank should take necessary steps after being made aware of these matters.
The Magistrate made these observations when the case related to an alleged Rs. 290 million fraud at a well known private bank was taken up before court today. The suspects in the case are alleged to have fraudulently obtained money belonging to the public through cryptocurrency transactions using Binance accounts.
The Magistrate also directed the Criminal Investigation Department to expedite investigations into the incident involving the disappearance of Rs. 290 million and report progress to court.
The court further observed that this was not an ordinary incident and instructed the CID to take prompt action to prevent similar frauds carried out through Binance platforms.
Making further observations, the Magistrate stated that for the past three months the suspects have been produced before court in connection with this incident and that investigations should be completed promptly by gathering all relevant information relating to the case.
The Magistrate also previously observed that this was not a minor offence such as ordinary theft, but a serious matter involving the fraudulent misappropriation of public funds through Binance accounts and stressed that the CID should take swift action to prevent such crimes.
Nineteen suspects connected to the incident had earlier been remanded and later released on bail.
The case was ordered to be called again on May 15.
Pakikaran Friday, 13 March 2026 09:42 AM
I had a property in Sri Lanka, sold it for 25 million, transferred all the money thru undial to dubai, opened a Kebab business in Dubai, monthly income of 1.3 million, I live in lavishly in sri lanka from 1.3 million a month profit tax free , i do not invest anymore in sri lanka, also i dont bring the money in to sri lanka when required only thru undial.
Sam J Friday, 13 March 2026 11:31 AM
So you still choose to live in Sri Lanka? why? why not go to Dubai and live happily there? people like you are the worse enemies of this country.
Puwakdanda Friday, 13 March 2026 07:17 PM
Nandalal was the deputy of Arjuna Mahendran during the bond scam. Banana Wasantha with 270 million assets include crypto-curremcy.
The Economist Friday, 13 March 2026 10:09 AM
The learn judge has little or no knowledge about the most basic fundamental of cryptos, which is defiance; an alternative financial mechanism that is free from Central/ Federal banking system. So, it’s impossible for our tiny Central Bank to fight with 3 Trillion Dollar crypto currency market. Since cryptos are a high volatile asset category, it is important to educate the public how fast they could lose their money if they don’t have a sound knowledge of the fundamental behaviour of cryptos
Mathan somas Friday, 13 March 2026 10:25 AM
Fraudulent share trading platforms often entice victims with promises of high returns. These schemes, primarily operated by Nigerian individuals, involve money laundering through deposits made into local accounts, which are then immediately reflected as assets on these illicit platforms. The perpetrators manipulate these fake accounts to display increasing wealth, encouraging further deposits. When victims attempt to withdraw funds, they are typically asked to make an additional "withdrawal deposit," resulting in further financial exploitation without any returns. A significant number of victims are elderly pensioners and individuals with limited financial literacy. Those involved in such money laundering activities should face severe penalties.
The Economist Friday, 13 March 2026 11:00 AM
The learnt judge has little or no knowledge about the most basic fundamental of cryptos, which is defiance; an alternative financial mechanism that is free from Central/ Federal banking system. So, it’s impossible for our tiny Central Bank to fight with 3 Trillion Dollar crypto currency market. Since cryptos are a high volatile asset category, it is important to educate the public how fast they could lose their money if they don’t have a sound knowledge of the fundamental behaviour of cryptos
Jingy Friday, 13 March 2026 12:01 PM
Earlier it's only high net worth shady individuals like politicians who got rich quickly used these tactics but now even the village toddy tapper is doing crypto. Real money is leaking out in exchange for imaginary bits and bytes. M Shaped economy is establishing fast. Authorities were and still are in hibernation.
In the first place, why were the culprits bailed? Sooner or later, they will find safe heavens in US, UAE, GREECE or some other place where money speaks. Even in Swiss.
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