Sri Lanka said cyber criminals hacked into the finance ministry’s computer system and stole $2.5 million, marking the largest known cash theft by hackers from a state institution in the country.
The breach dealt a fresh blow to Sri Lanka, which is still recovering from the 2022 economic crisis that pushed Colombo into default on its $46 billion in external debt. According to Finance Ministry Secretary Harshana Suriyapperuma, the stolen funds were intended for debt repayment to Australia.
Officials said authorities first detected an attempt to break into the ministry’s email server. Further investigation then revealed that a $2.5 million payment owed to Australia had disappeared.
Suriyapperuma told reporters in Colombo that investigators were examining the case and that authorities could not yet disclose further details. He added that Sri Lanka had sought support from foreign law enforcement agencies as the inquiry continued.
The government also suspended four senior officers at the Public Debt Management Office after the breach. Sri Lanka established the office earlier this year as part of reforms linked to the International Monetary Fund’s $2.9 billion bailout programme, which began in early 2023 after the country’s economic collapse.
“We maintained confidentiality to ensure that investigations could proceed without hindrance,” Secretary to the Treasury Dr. Harshana Suriyapperuma said today, addressing the media on the circumstances surrounding the alleged hacking and theft of Treasury funds.
He added that… pic.twitter.com/lzmbCWhqDx
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Australia’s High Commissioner to Sri Lanka, Matthew Duckworth, said Canberra was aware of irregularities involving payments due to Australia. In a statement on X, he said Sri Lankan authorities were investigating the matter and coordinating with Australian officials, who were assisting the inquiry.
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Duckworth also said Australia remained committed to supporting Sri Lanka’s return to debt sustainability.
The cyberattack came only months after Sri Lanka’s central bank and finance ministry launched a public awareness campaign in local newspapers, warning citizens about cyber scams. The latest breach has raised broader concerns about cybersecurity preparedness within key state institutions.