Sri Lanka opens probe as hackers siphon $2.5mn from debt coffers

Sri Lanka has opened an investigation into a high-stakes security breach after hackers infiltrated the finance ministry's systems to steal $2.5 million, the BBC reports.

The British broadcaster said the diverted funds were intended for a bilateral debt repayment to Australia, scheduled for settlement in September 2025.

Authorities suspect the breach occurred in January, though the narrative only surfaced after the Australian creditor flagged the missing payment.

Harshana Suriyapperuma, the finance ministry secretary, said on Thursday that while the payment was processed, cyber criminals intercepted the transaction and routed the cash to offshore accounts.

As per the BBC, four senior officials at the Public Debt Management Office have been suspended as part of the fallout.

Colombo is now seeking backup from foreign law-enforcing agencies to untangle the heist.

While the technical specifics remain murky, investigators believe the hackers tampered with email-based payment instructions -- a move that successfully bypassed internal control mechanisms.

The friction intensified when the perpetrators attempted a similar play on a payment due to India.

This second attempt raised immediate red flags over altered bank details, exposing the extent of the cyber heist.

This security failure serves as a fresh blow to a nation still finding its footing after the 2022 economic collapse.

Colombo defaulted on its $46 billion external debt four years ago, a crisis that sparked widespread unrest and toppled the previous administration.

Matthew Duckworth, the Australian high commissioner in Colombo, posted on X that Canberra is coordinating with local officials to assist the probe.

Ironically, the hack follows a recent advertising campaign by Sri Lanka’s central bank warning the public to stay vigilant against digital scams.

Officials are now focused on whether the fail-safes were compromised from within and if the stolen millions can be recovered.