Colombo, April 24, 2026 – Cyber hackers have stolen $2.5 million from Sri Lanka’s Ministry of Finance in the largest breach of a state institution in the nation’s history. The theft targeted funds meant for debt repayment to Australia, sparking a high-level probe amid the country’s ongoing economic recovery.
Breach Timeline
Hackers infiltrated the ministry’s External Resources Department email server and payment system between December 2025 and January 31, 2026. They intercepted instructions for five payment tranches totalling $2.5 million out of a $22.9 million debt owed to Australia, redirecting the money to their own account. The breach came to light only after Australia flagged missing payments.
Official Actions
Sri Lanka suspended four to five senior officials from the Public Debt Management Office, including directors and IT heads. The ministry notified SL-CERT, police cyber units, the CID, and the Central Bank’s Financial Intelligence Unit, while requesting international law enforcement support. A special committee is probing whether the attack originated domestically or abroad, with active efforts to recover the funds.
Economic Fallout
This incident compounds Sri Lanka’s challenges following its 2022 debt default of $46 billion and IMF bailout. Australia has confirmed its cooperation and reiterated commitment to Sri Lanka’s financial stability. As of April 23, no suspects have been identified, and investigations continue.
Newswire adds: “…Deputy Minister of Finance Dr Anil Jayantha announced that complaints have been filed with law enforcement agencies following a cyber theft incident involving unauthorised access to the computer system of the Department of External Resources under the Ministry of Finance.
He said the incident occurred during communication and fund settlement activities between the Australian Export Finance Agency and the Treasury, where both parties exchanged information via email.”
Note- AI handle used to compile this news report with sources including NDTV, NDTV Profit, Facebook & ABC among others.
