<ul><li>Mixed messaging from Govt.</li><li>COPF Chair slams Fin. Min. over 3 no-shows</li><li>Govt. activates 24/7 cyber monitoring centre</li><li>New national watchdog in the pipeline</li></ul> Preliminary findings have not established evidence of a cyber intrusion into Government systems as Sri Lanka continues investigations into the purported misdirected Treasury payment of $ 2.5 million, Deputy Minister of Digital Economy Eranga Weeraratne claimed on Friday (24).&nbsp;This was a day after the Treasury Secretary stated that hackers had breached the e-mail system to carry out the deed.&nbsp;According to Weeraratne, the payment, intended for a foreign debt repayment, had instead been transferred to a third party between December 2025 and January 2026. Authorities are examining whether the incident had resulted from a technical breach or an impersonation scheme involving fraudulent communication.&nbsp;“Based on the investigations conducted thus far, no evidence of a system breach has been identified. There has been no indication of email hacking or similar intrusion. However, investigations are ongoing to determine how a foreign party may have impersonated a legitimate entity and facilitated this transaction. At present, there is no indication that the Ministry of Finance’s systems were compromised,” Weeraratne told The Sunday Morning.&nbsp;He added that efforts were underway to strengthen the Government’s digital security infrastructure, including operationalising a centralised monitoring mechanism.&nbsp;“The Government has established a 24/7 National Cyber Security Operations Centre, which is now operational. This facility is mandated to carry out real-time monitoring using Artificial Intelligence (AI)-enabled tools to detect potential threats in advance. Integrating critical IT infrastructure across institutions with this system remains a key priority,” he said.&nbsp;Weeraratne noted that legislative measures were in progress to reinforce institutional oversight of cybersecurity. “There are plans to establish a national cybersecurity authority and the relevant bill is currently with the Legal Draftsman. This institution is expected to play a central role in enforcing cybersecurity standards across State institutions,” he said.The incident in question relates to a January foreign debt repayment, when funds from a wider $ 22.9 million settlement due to Export Finance Australia were allegedly diverted.&nbsp;Deputy Minister of Finance and Planning Anil Jayantha Fernando reported that a similar fraudulent attempt involving a payment to India had further exposed the discrepancy.&nbsp;Meanwhile, Department of External Resources Director General R.M.S.P.S. Bandara declined to comment in detail, citing the ongoing investigation.“The Treasury has already issued a press release. Beyond that, I am unable to provide further comment as the matter remains under investigation,” he said.When questioned further regarding the timeline and discovery of the discrepancy, Bandara reiterated that disclosures at this stage could affect the process.The incident has prompted responses from lawmakers, particularly regarding governance and oversight of public finance.&nbsp;Committee on Public Finance (COPF) Chairman Harsha de Silva said that prior concerns had been raised about institutional capacity in managing sovereign debt operations.&nbsp;“What has happened to $ 2.5 million in public funds raises serious concerns. This is not merely a case of negligence, but reflects a broader failure that had been previously highlighted. When debt management responsibilities were transferred from the Central Bank to the Treasury’s Public Debt Management Office, the COPF repeatedly emphasised the need for experienced and competent personnel. Managing sovereign debt in international markets requires specialised expertise, and those concerns were not adequately addressed,” he said.&nbsp;

Treasury breach: No evidence of system hack: Deputy Minister 

<ul><li>Only 25–30% of critical State infrastructure currently linked to monitoring network&nbsp;</li><li>Govt. aims to connect 37 priority institutions within next quarter&nbsp;</li></ul> The Finance Ministry’s IT infrastructure is yet to be fully integrated into the National Cyber Security Operations Centre (NCSOC), Deputy Minister of Digital Economy Eranga Weeraratne said in the aftermath of the controversial cybersecurity breach reported last week.Speaking to The Sunday Morning, he further revealed that the integration process was underway and had to be expedited.&nbsp;Speaking on the Government’s cybersecurity preparedness following $ 2.5 million meant for a foreign debt repayment being diverted to a hacker through fraudulent instructions, Weeraratne said that the Finance Ministry remained a priority for integration into the national monitoring platform in the wake of recent concerns surrounding the ministry.&nbsp;The NCSOC is a 24-hour monitoring facility equipped with Artificial Intelligence (AI)-enabled tools designed to detect cyber threats in real time and respond before incidents escalate.&nbsp;While the centre is already operational, the Deputy Minister said that connecting the Finance Ministry was essential to strengthen protection against future vulnerabilities.&nbsp;“We have to first integrate with these monitoring tools. It is only then that the tools generate reports identifying the vulnerabilities,” he said.&nbsp;He added that integration was essential in order to identify security gaps and direct institutions to address them promptly.&nbsp;Weeraratne said that, so far, no evidence had been found of a system hack or email breach within the ministry itself.&nbsp;Instead, authorities are probing an incident involving a foreign party allegedly impersonating a legitimate company.He said that once institutions were linked to the NCSOC, authorities would be better placed to detect the kinds of technical loopholes that enabled such fraud or deception.At present, only around 25–30% of the country’s critical public infrastructure has been connected to the centre. The Government has identified 37 key institutions for integration, with the remaining connections targeted for completion within the next quarter.&nbsp;The Deputy Minister said that expanding coverage across high-risk institutions was now a priority as Sri Lanka continued to digitise public services.The NCSOC, launched in September 2025 under the Sri Lanka Computer Emergency Readiness Team (Sri Lanka CERT), functions as a centralised monitoring hub to protect critical national information infrastructure.

Treasury not connected to NCSOC: Dep. Min.

<ul><li>2 PDMO, 2 ERD officials removed pending disciplinary inquiry</li><li>CID, CBSL FIU, SLCERT join cross-border investigation</li></ul> The Government has suspended four senior officials of the Ministry of Finance – two from the Public Debt Management Office (PDMO) and two from the External Resources Department (ERD) – pending a disciplinary inquiry into a cyber fraud that resulted in the diversion of $ 2.5 million.The funds had been allocated for an external debt repayment to an Australian creditor.According to preliminary findings, the payment had been redirected after unauthorised access had been gained to the email system of the ERD.&nbsp;The incident is now under investigation by multiple agencies, including the Criminal Investigation Department (CID), with support from international counterparts.Treasury Deputy Secretary Ananda Kithsiri Seneviratne confirmed the positions of those suspended.“The suspended officials include one Additional Director General and one Director from the PDMO, as well as one Director and one Assistant Director from the External Resources Department,” he said.He added that the suspensions would remain in effect until the conclusion of the inquiry.“The duration will depend on the process and a disciplinary inquirer has already been appointed. The inquiry is expected to take some time,” he told The Sunday Morning.The incident has raised concerns regarding financial controls within the Treasury, particularly in the context of Sri Lanka’s ongoing debt management process. However, officials maintain that the country’s external obligations remain unaffected.Treasury Secretary Dr. Harshana Suriyapperuma said that the matter had been reviewed in the context of debt servicing commitments.“We examined whether this situation could be considered a technical default. Based on advice received, Sri Lanka has demonstrated both the capacity and the intention to service its debt by initiating the payment. The diversion occurred due to the actions of third parties. We are also engaging with the relevant creditor in good faith. On that basis, we have been advised that this does not constitute a technical default,” he said.Investigations are being coordinated by the CID following complaints lodged by the Ministry of Finance. The Financial Intelligence Unit (FIU) of the Central Bank of Sri Lanka (CBSL) and the Sri Lanka Computer Emergency Readiness Team (Sri Lanka CERT) have also been engaged to trace the transaction and identify those responsible.&nbsp;Authorities are working with Australian counterparts, as the funds were routed through a bank account in Australia.The Australian High Commission in Colombo has acknowledged the issue and is facilitating coordination between the two countries. Australian authorities have also indicated their awareness of the payment irregularity involving their export credit agency.The Ministry of Finance said that, alongside the ongoing investigations, steps were being taken to strengthen internal systems and prevent similar incidents. The outcome of the disciplinary inquiry will determine any further administrative action against the suspended officials.&nbsp;

Missing $ 2.5 m Treasury funds: 4 senior Finance Min. officials suspended

<ul><li>Tougher powers for regulators</li><li>Polluters, producers to face greater accountability</li></ul> The amended National Environmental Act is expected to be gazetted within the coming weeks, marking the first major overhaul of Sri Lanka’s environmental legislation in more than two decades, Environment Minister Dr. Dammika Patabendi reveals.Speaking to The Sunday Morning, the Minister said that the draft had already been sent to the Government Printer for publication, expressing confidence that the process would be completed soon.“It has been 25 years since the National Environmental Act was updated,” Patabendi said, describing the proposed legislation as a long-awaited modernisation of the country’s legal framework.&nbsp;He said the new law was designed to align with global standards and address weaknesses in previous regulations that had failed to adequately prevent environmental pollution and damage.One of the most significant changes under the proposed act is stronger enforcement powers for regulators. Patabendi said that under the existing framework, authorities were often limited to issuing recommendations without the legal authority to ensure compliance.“In the past, some provisions of the National Environmental Act were not sufficient. We could only provide recommendations to institutions. But now we have been able to include provisions that allow us to take action if the recommendations we issue are not implemented.”The Minister said that the act would also introduce modern environmental management concepts such as Strategic Environmental Assessments (SEAs) and Extended Producer Responsibility (EPR), placing responsibility on manufacturers for the full lifecycle of their products.“Institutions must inform us about the volume of plastic products they manufacture. They are required to collect them. We will be monitoring and investigating that process,” he said.The Cabinet approved amendments to Sri Lanka’s Central Environmental Authority (CEA)-administered National Environmental Act No.47 of 1980 in December 2025, paving the way for the first major reforms in 25 years. According to the ministry, the changes include tighter controls on waste disposal, pollution, chemical management, and accountability mechanisms for local authorities.Meanwhile, CEA Chairman Prof. Tilak Hewawasam outlined several new powers expected under the revised law. He stated that obtaining an environmental recommendation before commencing prescribed activities would become a mandatory legal requirement, with failure to do so punishable by law.He added that the criteria for suspending or cancelling Environmental Protection Licences (EPLs) had been expanded, including when operators failed to prevent serious industrial accidents. Authorities will also be able to seek court orders for the temporary closure of industries operating without valid licences.Prof. Hewawasam said that the amended law would also strengthen hazardous waste regulation, making the import or export of such waste without written CEA approval a punishable offence. A technical expert committee is also expected to be appointed to oversee compliance.For the first time, the Polluter Pays Principle (PPP) is also to be formally recognised through Natural Resource Damage Assessments (NRDAs), allowing the State to scientifically assess environmental damage and recover restoration costs from responsible parties.In addition, offences related to air, water, noise, and vibration pollution are to be classified as cognisable offences, enabling arrests without warrants. The CEA will also be empowered to seek court orders to remove unauthorised constructions deemed harmful to the environment.The CEA Chairman further explained that Government agencies would be required to carry out SEAs of proposed policies, strategies, and plans before implementation to better integrate sustainability into decision-making.However, environmental groups and experts have raised concerns over the lack of transparency surrounding the drafting process. They noted that while the Government had publicly announced the preparation of a new bill, the draft had not been released for public review yet and no stakeholder consultations had been held.They also warned that relying heavily on proposals developed 15–16 years ago may be inadequate given evolving climate risks, rising pollution levels, and changes in international environmental standards.

Environmental reform: New green act to be gazetted soon

<ul><li>Health teams deployed to high-risk Colombo areas</li><li>Authorities on alert after outbreaks in B’desh, Thailand</li><li>Misinformation, missed doses, vulnerable age groups cited as key risks</li></ul> Sri Lanka’s hard-won status as a measles-free nation has come under fresh threat following the confirmation of two imported measles cases in the Colombo District.&nbsp;Health authorities warn that vaccine hesitancy, misinformation, and immunity gaps could allow the highly contagious disease to regain a foothold in the country.This was first revealed during a media briefing held by the Family Health Bureau (FHB) recently. The officials said that laboratory investigations had confirmed that the virus had been imported and was unrelated to Sri Lanka’s previous local outbreak in 2023.&nbsp;They urged parents to act responsibly, saying that protecting children through vaccination was not only an individual decision but a national responsibility.&nbsp;&nbsp;Samples tested through regional laboratories and verified through specialised testing in India had identified the strain as foreign in origin, indicating the infections were newly introduced from overseas rather than resulting from dormant domestic transmission.&nbsp;“This is not an extension of the previous outbreak. This is a fresh introduction,” Epidemiology Unit Consultant Community Physician Dr. Athula Liyanapathirana said, warning that the country had to act swiftly to prevent any secondary chains of transmission.&nbsp;Following the media briefing, Dr. Liyanapathirana told The Sunday Morning that the latest cases, both involving children who had not received their scheduled Measles, Mumps, and Rubella (MMR) vaccines, marked the first reported infections since January 2025 and had triggered heightened surveillance measures in Colombo and surrounding areas. Officials stated that the children’s parents had either delayed or refused the recommended vaccine doses.&nbsp;The resurgence comes at a time when several countries in the region are grappling with outbreaks. Bangladesh is currently facing a severe measles wave that has reportedly claimed more than 100 children’s lives, while similar outbreaks have also been reported in Thailand.&nbsp;Thus, Dr. Liyanapathirana cautioned that international travel and regional mobility increased the risk of additional imported cases reaching Sri Lanka.&nbsp;Sri Lanka was recognised by the World Health Organization (WHO) as having eliminated measles in 2019 after years of sustained immunisation efforts. However, public health officials noted that elimination status could only be maintained if imported infections did not lead to continuous local transmission over a prolonged period.&nbsp;When asked whether the rise of vaccine hesitancy was a major concern, Dr. Liyanapathirana said that vaccine hesitancy and anti-vaxxers in Sri Lanka were created mainly due to misinformation online.&nbsp;Research conducted in collaboration with social science experts from the University of Colombo found that many hesitant parents were influenced by false claims circulating through Facebook groups and other social media platforms, he said.&nbsp;“Even if they know the scientific fact that a child could die from complications if they don’t get the measles vaccine, some parents still avoid it due to these wrong attitudes,” Dr. Liyanapathirana said. “Some say it is because of religion, but often the root cause is ignorance.”&nbsp;He also pointed to a linguistic factor in relation to Sinhala, where the same commonly used term for ‘injection’ is often applied to both vaccines and ordinary medical injections such as antibiotics, allowing fears associated with one to spill over unfairly onto childhood immunisation.&nbsp;He noted that the 2023 measles outbreak had similarly begun among unvaccinated children, and the same pattern was visible in the latest cases.&nbsp;“The disease does not affect those who are protected. It quickly finds and targets unprotected children,” he said.&nbsp;In response to the recent two cases, the Health Ministry has intensified surveillance and field operations in the Colombo District, particularly in Kolonnawa, Gothatuwa, Ratmalana, and Dehiwala.&nbsp;Special outreach teams have been deployed to engage directly with hesitant families through counselling, educational videos, and flip chart presentations aimed at increasing trust in vaccination and encouraging children to receive catch-up doses.According to Dr. Liyanapathirana, private practitioners and general practitioners have also been instructed to immediately refer any patient presenting fever and rash symptoms to hospitals or public health authorities for urgent screening, in a bid to strengthen early detection systems.During the press conference, Dr. Liyanapathirana also warned of a growing immunity gap among adults aged 20–34 years.&nbsp;This age group may have incomplete protection due to historical changes in Sri Lanka’s vaccination schedule, creating a pool of susceptible individuals through whom the virus could spread. Such transmission, he said, would pose a major risk to infants under nine months, who are too young to receive their first vaccine dose.&nbsp;Addressing concerns over shortages in the wider healthcare system, Dr. Liyanapathirana said that vaccine supplies remained secure.&nbsp;Sri Lanka currently maintains a six-month buffer stock at the national level, three-month reserves in district cold rooms, and approximately two months of additional stocks at the divisional level.&nbsp;“Even if a global shortage occurs, we can manage for about 10 months without any trouble,” he said, distinguishing vaccines from other medicines that may periodically face supply constraints.

Measles alert: Imported measles places SL at risk

The duration of the Parliamentary Select Committee (PSC) appointed to investigate the release of 323 containers from the Port of Colombo without mandatory physical inspection has been extended by a further three months, The Sunday Morning learns.The committee was first convened on 21 January, with members initially agreeing to complete the inquiry within three months. However, delays linked to recent national developments, including the fuel crisis, have pushed back the timeline for the final report.&nbsp;Sources familiar with the process said the committee was now nearing the conclusion of its work, with most primary evidence already recorded.The PSC has met on seven occasions so far and is currently open to receiving voluntary witnesses before finalising its findings. The final report is expected to be completed and tabled in Parliament within the coming weeks.Meanwhile, tensions have escalated between Government and Opposition members over a request made by Opposition MPs Ajith P. Perera, Mujibur Rahman, Dayasiri Jayasekara, and D.V. Chanaka during the committee’s 7 April meeting to summon President Anura Kumara Dissanayake, Minister Bimal Rathnayake, Deputy Minister Janitha Ruwan Kodithuwakku, and Finance Ministry Secretary Harshana Suriyapperuma to give evidence.The request was defeated by eight votes to four within the committee. Opposition members alleged that the majority had used its numbers to block the appearance of key witnesses, while Government members maintained that a lengthy discussion had taken place and that the Opposition had failed to establish the relevance of calling these individuals.Both sides now claim that they will take action against the other over conduct within the committee.National People’s Power (NPP) MP Dr. Najith Indika, a member of the committee, accused Opposition MPs of attempting to undermine the credibility of the PSC before the release of its final report.Speaking to The Sunday Morning, Dr. Indika further stated that the committee had no objection to summoning any person, including the President, but stressed that a logical and evidence-based basis had to first be established.“The claim that we refused to allow the President, Minister Bimal Rathnayake, and another Minister to be summoned is completely false. This issue regarding the composition of the committee was never raised before. It is being raised now for another reason. They already know how such committees are formed. They know committee representation is based on parliamentary numbers. That is why the membership stands at eight and four. They know that very well,” he said.He also criticised what he described as a breach of an earlier understanding among members not to disclose committee proceedings to the media until the report was completed, adding that the Government side would consider action under Standing Orders against the conduct of Opposition members.Meanwhile, Samagi Jana Balawegaya (SJB) MP Ajith P. Perera said that Opposition members were considering further steps in response to the rejection of their request.He stated that the Opposition had sought to call four witnesses whom it considered essential to the inquiry, including the President in his capacity as Finance Minister, the then Ports Minister, the Deputy Minister who publicly addressed the matter on behalf of the Government, and the Finance Ministry Secretary.Perera said that the rejection was completely against parliamentary tradition and added that Opposition MPs were discussing strategic options to respond to the Government’s move.When asked whether those ‘strategic options’ included the resignation of Opposition members from the committee in protest, Perera said no final decision had been made.“We are looking at the matter with an open mind. We can stay in the committee and follow strategic methods. We are discussing whether to raise this issue within parliamentary tradition or complain to the Speaker,” he said.&nbsp;

Container release probe: PSC extended by 3 months

Experts are continuing work on the Department for Registration of Persons (DRP) computer system, while finances for the procurement of replacement batteries for the Uninterruptible Power Supply (UPS) system are to be arranged, the Ministry of Digital Economy confirms.Speaking to The Sunday Morning, Digital Economy Ministry Secretary Waruna Sri Dhanapala said that the department was working to restore the system with the assistance of various technological experts, including personnel from Sri Lanka Telecom.“We want to fast-track this process. The problem is that the system is old and it is the largest database in the country, therefore, modifications are difficult,” he said.The Secretary reiterated that both the DRP and the ministry were working to ensure the continuity of the department’s services.Dhanapala made these remarks when questioned by The Sunday Morning regarding the disruption caused by an unexpected breakdown in the DRP’s computer system on 26 March following a power outage.&nbsp;The department subsequently suspended all services, including the one-day service for issuing National Identity Cards (NICs), at the Head Office and provincial offices.While only Head Office operations were directly disrupted, the impact extended to regional branches, as applications submitted there are processed through the main office.The initial breakdown was reportedly caused by a power outage during which the UPS system failed to respond in time, as its batteries required replacement.Services at the DRP were restricted once again on 17 April due to another unexpected system failure. Normal operations resumed on 20 April.The department has expressed regret for the inconvenience caused to the public and other institutions.Meanwhile, on Friday (24), the DRP warned the public against fraudulent telephone calls and messages being circulated in the name of the department, while urging citizens to verify official communications only through authorised channels.In a statement, the department said that certain individuals were contacting members of the public using telephone numbers including 115226126, +94115226126, +0115226126, 0771167739, and 0742756098, falsely claiming to represent the DRP.The department stressed that it did not request personal information, banking details, or financial payments through unofficial telephone calls or private messages.Authorities also cautioned the public regarding fraudulent mobile applications and digital platforms claiming to provide services linked to NICs or other departmental functions. The department noted that some of these platforms were being promoted as official services despite having no connection to the Government institution.The statement said that any applications or digital services relating to the department would only be announced through official Government channels.The department also advised the public to rely solely on its authorised website for accurate information and services.It further urged members of the public not to disclose personal data or engage in financial transactions in response to suspicious calls, messages, or online platforms.The DRP stated that complaints regarding such incidents could be reported to the relevant authorities for further investigation.&nbsp;

NIC issuance: Restoration of DRP system underway  

Sarvajana Balaya MP Dilith Jayaweera voiced concern about Sri Lanka’s global standing, following the reported hacking incident involving the Treasury which may have cost the taxpayer $ 2.5 million, according to initial assessments.&nbsp;The Opposition MP strongly criticised the handling of the alleged Treasury fraud involving the transfer of $ 2.5 million, arguing that the incident should not be described as a ‘hacker attack,’ noting that it instead bore the hallmarks of a Business Email Compromise (BEC) scam involving human involvement.Speaking to the media, Jayaweera said the term ‘hackers’ was being misused in relation to the case.“Do not insult hackers. This is not the work of hackers. Hackers are a different category altogether. They may be ethical hackers or white hat, black hat, or grey hat hackers. This does not belong to any of those categories,” he said.He alleged that the matter was being mischaracterised and questioned claims that a cyberattack had taken place.Jayaweera said that the incident appeared to be a classic case of BEC, in which a fraudster impersonates a legitimate party using a slightly altered email address or identity to manipulate financial transactions.

Hacking incident can cause reputational damage: Dilith

The Central Bank of Sri Lanka (CBSL) has projected a significant increase in the country’s fuel import expenditure in 2026, citing geopolitical tensions in the Middle East and volatility in global oil markets. Fuel imports account for nearly 20% of Sri Lanka’s total import bill on average, according to the Central Bank. Despite a rise in import volumes in 2025, total fuel expenditure declined from $4.4 billion in 2024 to $4 billion in 2025, mainly due to lower global prices. The average price of crude oil dropped from $84.7 per barrel in 2024 to $73.2 in 2025. Sri Lanka also continued its cost-reflective fuel pricing mechanism in 2025, resulting in reductions in retail prices of Petrol 92-Octane, auto diesel, and kerosene by the end of the year. However, fuel consumption increased by 7.4% in 2025 amid improved economic activity. In contrast, fuel prices were sharply revised upward in March 2026, outside the usual pricing mechanism, due to heightened geopolitical pressures linked to Middle East conflicts.

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Environmental reform: New green act to be gazetted soon

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NIC issuance: Restoration of DRP system underway

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