• Ministry of Defence highlights freezing of assets to disrupt terrorist financing
• Public access to sanctions information improved via dedicated official website

The Ministry of Defence has announced that Sri Lanka has significantly reinforced its national security framework by placing greater emphasis on Targeted Financial Sanctions (TFS), a key measure to prevent and counter terrorism (CT) related financing and safeguard the country’s financial system.

According to the Ministry, Targeted Financial Sanctions are restrictions imposed on individuals, groups, or organizations involved in terrorism or the financing of terrorism. These sanctions freeze financial and non-financial assets, restrict access to banking and economic resources, and prevent designated persons or entities from using Sri Lanka’s financial system for any transactions.

In Sri Lanka, TFS measures are implemented under United Nations Security Council Resolution 1373 (2001) through Regulation No. 01 of 2012, enacted under the United Nations Act, No. 45 of 1968. Once a person or organization is designated via a Gazette notification under the regulation, a legally binding Freezing Order is issued. This results in the freezing of bank accounts, halting of financial transactions, and restrictions on the use, sale, or transfer of assets including land, vehicles, houses, jewellery, and other property.

he Ministry of Defence emphasised that the Minister of Foreign Affairs has the authority to impose sanctions, while the Secretary to the Ministry of Defence has been appointed as the Competent Authority for administrative and operational matters, reflecting the importance of counter-terrorism financing at the national level. All actions are carried out based on tangible evidence and national security considerations.

TFS not only prevents terrorism at its source but also strengthens Sri Lanka’s financial system and ensures compliance with international obligations under the United Nations and the Financial Action Task Force (FATF).

To enhance transparency and public awareness, the Office of the Competent Authority has launched an official website, www.competentauthority.gov.lk, where the public can access information on Gazette notifications and freezing orders.

The Ministry of Defence highlighted that terrorism often operates quietly through financial channels and concealed assets, and strengthened TFS measures, along with public access to information, reinforce the country’s commitment to peace, stability, and national security.