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Sheron
Sheron
Mar 11 2026
81The threat level of money laundering through drug trafficking as well as terrorism financing has increased in 2024/25, a report compiled by the Central Bank’s Financial Intelligence Unit (FIU) said.
The National Risk Assessment (NRA) 2024/25 on Money Laundering (ML), Terrorist Financing (TF) and Proliferation Financing (PF) was compiled in collaboration with 86 governmental organizations, regulatory bodies and private sector institutions.
The country’s third NRA aimed to identify money laundering, terrorist financing and proliferation financing risks.
The assessment highlights Sri Lanka’s most significant ML/TF/PF threats, vulnerabilities, and overall risk.
“Under the ML threat assessment, drug trafficking was identified as the most serious predicate offence, with the ML threat level increasing to high from the previous medium-high rating,” the Central Bank said in a statement.
“It was followed by fraud, and customs related offences, including Trade-Based Money Laundering (TBML), which were assessed as medium-high.”
The threat level of bribery and corruption has decreased from a medium-high rating in the previous assessment to a medium level, it said.
Sri Lanka’s national terrorist financing (TF) risk, a combination of TF threat and vulnerability, has increased to a medium-high level from a medium level in the previous assessment.
“This risk was driven by a rise in threat level to medium-high reflecting evolving threats from both extremist and separatist networks, supported by possible diaspora funding, digital radicalization, regional spillover risks, and the use of informal and emerging financial channels,” the Central Bank said.
The National Risk Assessment comes ahead of Sri Lanka’s third mutual evaluation in March by the Asia Pacific Group on Money Laundering (APG), the regional affiliate of the global watchdog, the Financial Action Task Force (FATF).
This evaluation, initially delayed due to the 2024 elections, will now subject Sri Lanka’s anti-money laundering and counter-terrorism financing (AML/CFT) frameworks to intense scrutiny starting this month.
The island nation is compelled to do this to prevent a repeat of a painful history, as Sri Lanka has been on the Grey List twice before, first in 2011 and again in 2017.
source: Economy Next
