Cybercriminals steal $2.5 million from Sri Lanka finance ministry in major breach
Cybercriminals have hacked into Sri Lanka’s Finance Ministry systems and siphoned off $2.5 million, the government confirmed on Thursday, marking what officials say is the largest cyber theft targeting a state institution in the debt-stricken country.
The incident deals a fresh setback to Sri Lanka, which is still recovering from its 2022 economic crisis after defaulting on $46 billion in external debt.
Finance Ministry Secretary Harshana Suriyapperuma said the stolen funds were intended as a debt repayment to Australia.
He told reporters that four senior officials at the Public Debt Management Office (PDMO) have been suspended following the breach.
Authorities said they were alerted to suspicious activity targeting the ministry’s email servers, and subsequent investigations revealed that a $2.5 million payment had gone missing during processing.
“Criminal investigators are looking into this and we are not in a position to give further details,” Suriyapperuma said, adding that international assistance has been sought to support the probe.
The PDMO was established earlier this year under an IMF-backed $2.9 billion bailout programme agreed in 2023 following Sri Lanka’s economic collapse.
Australia’s High Commissioner to Sri Lanka, Matthew Duckworth, confirmed awareness of “irregularities” in payments due to Canberra, adding that Australian authorities are cooperating with the investigation.
“Sri Lankan authorities are investigating the matter and are coordinating with Australian officials, who are assisting the investigation,” he said on X, reiterating Australia’s support for Sri Lanka’s debt recovery efforts.
The cyberattack comes amid ongoing warnings from Sri Lankan authorities about rising online fraud, with recent public campaigns urging citizens to remain cautious of cyber scams.