By Ceylon Signal 
Colombo, August 17 — Four managers from leading commercial banks in Sri Lanka were today ordered to be remanded until August 20 by Colombo Additional Magistrate Liyan Warusawithana, after being arrested over their alleged involvement in an illegal foreign currency transfer scheme amounting to more than USD 1 billion.
The suspects were arrested by the Financial Crimes Investigation Unit of the Criminal Investigation Department (CID) and produced before court on charges of facilitating telegraphic transfers (TTs) for 36 fake companies allegedly established by Jeffrey Mohamed, identified as the main suspect in a massive financial and narcotics-linked money laundering operation.
Four Bank Managers Arrested
The arrested bank officials are:
Shiran Mario Perera – Manager, Seylan Bank Bambalapitiya Branch
Umesh Randika Fernando – Sampath Bank
Dharmalingam Prasath – Union Bank
Amila Udara – Nations Trust Bank
Investigators allege that these managers processed 199 TT requests enabling the outflow of more than USD 1 billion without any corresponding imports, violating banking regulations and customs laws.
Fake Companies and Narcotics Links
Senior State Counsel Oswald Perera, appearing for the Attorney General, told court that the racket was uncovered during investigations into an earlier case involving the illegal outflow of USD 190 billion.
He said the main suspect, Jeffrey Mohamed, had used the names of eight individuals to register 36 fictitious companies. None of the purported owners or secretaries ever visited the banks. Instead, an associate of Mohamed submitted TT applications, which were allegedly approved by the arrested managers.
Perera further revealed that the suspects met Mohamed every Friday, receiving payments ranging from Rs. 300,000 to Rs. 500,000, indicating possible illicit enrichment. He said the funds were linked to a major narcotics trafficker, for whom Mohamed is already facing indictments before the Colombo High Court.
Violation of Banking and Customs Regulations
The prosecution argued that the suspects had breached the trust placed in them by their respective banks and had failed to follow mandatory regulatory procedures. By approving foreign currency transfers without verifying imports, they had allegedly contributed to a large-scale fraud affecting both the banking sector and the State.
“This money sent overseas without importing any goods is essentially the money of the poor people of this country,” Perera told court, stressing the gravity of the offence.
Defence Requests Bail
President’s Counsel Sampath Mendis, President’s Counsel Nalinda Indratissa, and other defence lawyers argued that branch managers cannot practically verify the existence of companies or the importation of goods. They said commercial banks follow different procedures from State banks and that routine client visits were being unfairly portrayed as misconduct.
They requested bail under any suitable conditions, stating that the suspects had not acted independently or with criminal intent.
Bail Refused
After considering submissions from both sides, the Additional Magistrate rejected the bail application and ordered all four suspects to be remanded until August 20.
Investigators say indictments against the four managers will be filed soon, as inquiries into their alleged involvement are nearing completion.