Sri Lanka cyber hack: Finance Ministry seeks recovery of USD 2.5 million lost in payment breach

Sri Lanka is seeking to recover USD 2.5 million after cyber criminals diverted part of a Finance Ministry payment. A senior Finance Ministry official confirmed the loss on Thursday. The case surfaced after the opposition alleged treasury funds were sent to a hackers account, instead of the intended creditor.

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Secretary to the Ministry of Finance Harshana Suriyapperuma spoke a day after opposition claims emerged. Suriyapperuma said the breach involved email access to the ministry’s payment process. Suriyapperuma also said the ministry detected hacking attempts early this year and responded with overseas coordination to limit damage.

Sri Lanka Finance Ministry hacking investigation and recovery efforts

A high powered committee was appointed to examine the hacking and the missing USD 2.5 million. The committee is expected to review how the payment instructions were changed. Authorities are also working to trace the funds and identify those behind the intrusion, as recovery efforts continue.

Suriyapperuma described a separate alert from January 2026, involving attempted entry to a government system. "In January 2026, we came to know that cyber criminals were trying to enter the External Resources Departments system. When such information was reported, we coordinated with the relevant foreign countries and ensured that no harm was caused to the country that was to receive the payment. That issue was resolved, he said.\"

Opposition claim on Sri Lanka Finance Ministry payment diversion

The disputed transaction related to a larger payment obligation. In September 2025, Sri Lanka was due to pay USD 22.9 million dollars to a creditor. USD 2.5 million, part of that amount, was paid between December 2025 and January 31, 2026.

A group of opposition lawyers wrote to the Speaker of Parliament on the alleged diversion. The group said the part payment went to a hackers account, not the correct creditors account. The lawyers urged an inquiry, arguing that public finances fall under parliaments responsibility.

The matter was also taken up during proceedings of the parliaments Committee on Public Accounts COPA. The discussions focused on how controls failed and how oversight would continue. Officials have not provided further public details on the creditor or the payment route used.

Australia and Sri Lanka Finance Ministry coordination on irregular payments

The Australian High Commission in Colombo said it knew about irregularities in payments owed to the Australian government. The statement said the High Commission and the Finance Ministry were aware of the issue. It added that Sri Lankan authorities are investigating and coordinating with Australian officials who are assisting the investigation.

Suriyapperuma’s confirmation placed the focus on recovering the USD 2.5 million and tightening payment safeguards. The investigation by the committee and the scrutiny at COPA are continuing. Sri Lanka is also coordinating with foreign partners, including Australia, as authorities check related payment trails and irregularities.

With inputs from PTI