Sri Lanka’s Ministry of Finance, Planning, and Economic Development has announced that the country’s first digital motor insurance card will be introduced from May 1.

The Ministry stated that this initiative represents a significant step toward advancing national digitalization while also enhancing public safety.

By replacing physical plastic cards, the move is also expected to contribute to environmental sustainability across the country.

The Ministry added that the digital motor insurance card will be officially launched in collaboration with the Insurance Regulatory Commission of Sri Lanka, the Insurance Association of Sri Lanka, and the Sri Lanka Police.

Sri Lanka’s Ministry of Finance has revealed that cyber hackers infiltrated the computer system of the External Resources Department, leading to the fraudulent diversion of a foreign debt repayment of nearly USD 2.5 million intended for Australia.

Addressing the issue, Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance, said the intrusion was first detected in January 2026, when officials became aware that hackers had attempted to gain unauthorized access to the External Resources Department’s systems and compromise them. Upon identifying the threat, the Ministry immediately alerted law‑enforcement authorities.

He said reports were lodged with the Sri Lanka Computer Emergency Readiness Team (SL‑CERT) and the Computer Crimes Investigation Division of the Sri Lanka Police to investigate the attempted system breach. In parallel, ministry officials instructed the External Resources Department to conduct an internal review to determine whether any further damage had occurred beyond the initial incident.

Subsequent investigations revealed that the cyberattack had taken place earlier than first detected. A review of previous months’ transactions uncovered that hackers had intercepted email communications linked to a government‑to‑government debt repayment involving Australia.

The Government is facing scrutiny following reports that $ 2.5 million (nearly Rs. 800 million) of Treasury funds was diverted during a foreign debt repayment, with the amount yet to reach the intended creditor country.

The funds were part of a bilateral payment to Australia amounting $ 22.9 million, with settlement due in September 2025.

The Treasury has appointed a Technical Investigation Committee to probe a suspected fraudulent payment involving $ 2.5 million linked to a bilateral transaction with Australia. The committee includes two Deputy Secretaries to the Treasury and will be co-chaired by A.N. Hapugala and S.S. Mudalige. The other members are National Planning Department Director General K.T.I. Premaratne, Legal Affairs Department Additional Director General A.K.D.D. Arandara, and Information Technology Management Department Assistant Director E.D. Shirantha.

The Committee has been tasked with probing the risk of fraudulent payment instructions received via email, which may have contributed to the disappearance of the funds remitted to Australia. It has been directed to carry out a comprehensive investigation into the incident and submit its report at the earliest.

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