Sri Lanka has strengthened its national security and counter-terrorism financing framework with renewed focus on targeted financial sanctions (TFS), the Defence Ministry said.

TFS are restrictive measures imposed on individuals or entities suspected of involvement in terrorism or the financing of terrorism. These measures are intended to freeze assets, limit access to financial systems, and prevent designated persons or organisations from conducting any form of financial activity within the country. In Sri Lanka, the implementation of TFS is carried out in line with United Nations (UN) Security Council Resolution 1373 (2001), under Regulation, Number 01 of 2012 made pursuant to the UN Act, No. 45 of 1968. Once a designation is published through a Gazette notification under the said Regulation, a legally binding freezing order comes into effect. This results in the immediate freezing of bank accounts and restrictions on the use, transfer, sale, or leasing of movable and immovable assets, including property, vehicles, jewellery, and other valuables.

The authority to impose TFS rests with the Foreign Affairs Minister. The Defence Secretary has been appointed as the Competent Authority responsible for administrative and operational implementation. 

The Office of the Competent Authority has launched an official website, www.competentauthority.gov.lk, where Gazette notifications and related freezing orders are made available to the public.

Officials further stated that terrorist financing often operates through concealed transactions and hidden assets, making financial monitoring and enforcement measures essential.