Drug trafficking tops SL's money laundering threats as terror financing risk rises

Drug trafficking, fraud and trade-based money laundering are Sri Lanka’s most significant money laundering threats, while warning that terrorist financing risks have increased, the latest national risk assessment released by the Financial Intelligence Unit of Sri Lanka revealed.

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The assessment, coordinated by the FIU of the Central Bank of Sri Lanka, found that Sri Lanka's overall national money laundering (ML) risk remains at a medium level, unchanged from the previous review. However, the threat from drug trafficking has escalated to "high", making it the most serious predicate offence generating illicit proceeds in the country.

The National Risk Assessment (NRA) 2024/25, Sri Lanka's third such exercise, was conducted with the participation of 86 public and private sector institutions and around 200 experts, examining risks across 15 sectors and thematic areas ranging from banking and securities to virtual assets and environmental crimes.