Parliament held a detailed debate on the USD 2.5 million Treasury cyber heist on May 6, with sharp exchanges between the Opposition and Government revealing transaction dates for the first time and exposing what Committee on Public Finance Chairman Harsha de Silva described as “monumental confusion” inside the Finance Ministry.

Finance and Planning Deputy Minister Dr. Anil Jayantha Fernando confirmed the payment sequence: three invoices totalling USD 713,757 paid on November 14; USD 377,660 on November 28; five invoices totalling USD 420,210 on January 5; and USD 997,799 on January 29. The Government became aware the funds had not reached the creditor on March 23, after notification by Export Finance Australia.

Earlier alerts had been referred to Sri Lanka CERT and the CID on January 9, while the Financial Intelligence Unit of the Central Bank was informed only on April 1.

CoPF Chairman Harsha de Silva (SJB) delivered the sharpest critique. He alleged the External Resources Department had no legal remit over debt servicing — that role belongs to the Public Debt Management Office — and said the Directors General of both departments are from the Planning Service “without adequate skills and experience.” He described Treasury Secretary Harshana Suriyapperuma as “a former Member of Parliament without the experience required to run complex operations at the Finance Ministry.”

He pressed on internal controls: “Where is the delegation of authority? Who approved these payments? One payment exceeded over USD 900,000, so where were the approval processes?”

De Silva said the Treasury Secretary had refused three CoPF summons before appearing only after the chairman wrote to the President. “I was too good to them,” he said. He warned the loss “is not going to come from Pelawatte. It will be recovered from the public with raised taxes.”

Opposition Leader Sajith Premadasa questioned how SWIFT details could have been altered in a four-step verification system, and challenged the Government’s failure to inform Parliament when it met in April. He also raised related concerns: a USD 600,000 loss linked to US Postal Service payments, double payments under Aswesuma, and missing French loan documentation.

Fernando said the incident would not constitute a technical debt default, citing financial and legal advisors. “Creditors including Australia and Paris Club members are unlikely to consider this a default.”

Justice Minister Harshana Nanayakkara said the CID had submitted a B-report to Court and investigations were ongoing.

Public Security Minister Ananda Wijepala told Parliament on May 7 that statements have already been recorded from 21 individuals in connection with the cyber theft, the first time the breadth of the witness pool has been disclosed publicly. “If there are persons responsible for the money transfer to a third party, they will be brought before the law. There is no argument on this,” Wijepala said, adding that a formal complaint had been filed with the CID and a comprehensive investigation was underway.

Outside Parliament, SLPP MP Namal Rajapaksa criticised the Government’s response while speaking to reporters in Horana on May 7, alleging that more than Rs. 800 million had been lost — roughly the rupee equivalent of the heist — and that the figure “could increase further if converted at current exchange rates.” He said the Finance Minister had reportedly warned the President of the matter in January but no corrective action had followed. “More than eighty crores have been stolen, but the President, the Finance Secretary, the Finance Ministry and the Central Bank are still sleeping,” he said. The remarks add an SLPP voice to the Opposition critique, alongside Sajith Premadasa’s SJB and Sarvajana Balaya’s Dilith Jayaweera.

The debate also covered the death of suspended Treasury Deputy Director Ranga Nishantha. SJB MP Mujibur Rahuman called for Scotland Yard to investigate the case, challenging the coroner’s suicide ruling. Rahuman separately drew a parallel between the NPP’s appointment of Dr. Suriyapperuma and the Rajapaksa government’s installation of Ajith Nivard Cabraal as CBSL Governor in 2021. In reaction to the day’s debate, an MIT-affiliated academic warned the heist could trigger tax hikes and delayed salary payments if confidence in digital payments erodes.

Source: Daily FT.