Sri Lanka has strengthened its national security and counter-terrorism financing framework with a renewed focus on Targeted Financial Sanctions (TFS), the Ministry of Defence has announced.
Targeted Financial Sanctions are restrictive measures imposed on individuals or entities suspected of involvement in terrorism or its financing. The measures are designed to freeze assets, limit access to the financial system and prevent designated persons or organisations from conducting financial activity in the country.
Implementation is carried out in line with United Nations Security Council Resolution 1373 (2001), under Regulation No. 01 of 2012 made pursuant to the United Nations Act No. 45 of 1968. Once a designation is published through a Gazette notification under the regulation, a legally binding freezing order takes effect immediately. Bank accounts are frozen and restrictions are placed on the use, transfer, sale or leasing of movable and immovable assets, including property, vehicles and jewellery.
The authority to impose TFS rests with the Minister of Foreign Affairs, while the Secretary to the Ministry of Defence serves as the Competent Authority for administrative and operational implementation. Officials said all designations and freezing actions are based on verified information and national security assessments.
The framework forms a key part of Sri Lanka’s compliance obligations under the United Nations system and the Financial Action Task Force (FATF) standards, an area that has drawn international scrutiny of Colombo’s anti-money-laundering and counter-terror-financing regime.
To improve transparency, the Office of the Competent Authority has launched a dedicated website at www.competentauthority.gov.lk where Gazette notifications and related freezing orders are made publicly available.
Officials said terrorist financing often operates through concealed transactions and hidden assets, making financial monitoring and enforcement essential to national security and the integrity of the broader financial system.
