Sri Lanka anti-money laundering national policy has been approved by the Cabinet, paving the way for a new five-year framework aimed at strengthening the country’s fight against money laundering, terrorism financing and the financing of the proliferation of weapons of mass destruction.
Sri Lanka anti-money laundering national policy to guide AML efforts through 2030
Cabinet Spokesman and Minister Nalinda Jayatissa announced that ministers had approved the “National Policy on Prevention of Money Laundering, Countering the Financing of Terrorism, and Countering the Financing of Proliferation of Weapons of Mass Destruction 2026-2030.” The policy will provide a strategic roadmap for government agencies, financial institutions and law enforcement authorities over the next five years.
The Sri Lanka anti-money laundering national policy is based on the findings of the country’s third National Risk Assessment (NRA), carried out by the Financial Intelligence Unit of the Central Bank of Sri Lanka during the 2024/25 period. The assessment evaluated vulnerabilities across the financial system and identified areas requiring stronger regulatory oversight and coordinated enforcement.
Authorities said the National Risk Assessment was conducted in line with internationally recognised standards established by the Financial Action Task Force (FATF), the global body responsible for setting benchmarks to combat money laundering, terrorist financing and the financing of weapons proliferation. Aligning domestic policies with FATF recommendations is considered essential for maintaining confidence in Sri Lanka’s financial system and supporting international financial cooperation.
The new policy is expected to strengthen coordination among regulatory agencies, financial institutions and investigative authorities while improving the country’s ability to detect, prevent and respond to illicit financial activities. It also aims to reinforce Sri Lanka’s compliance with international anti-money laundering and counter-terrorism financing obligations.
The Cabinet’s approval comes as Sri Lanka continues efforts to strengthen financial governance and cybersecurity following several high-profile incidents affecting the banking sector. Among them was a US$2.5 million fraud involving Treasury funds linked to foreign debt repayments, highlighting the importance of robust financial controls, effective monitoring systems and timely reporting mechanisms.
Officials have increasingly focused on improving institutional resilience against financial crime, cyber threats and cross-border illicit transactions as digital financial services continue to expand. The latest policy is expected to complement ongoing reforms designed to enhance transparency and strengthen public confidence in the country’s financial sector.
Sri Lanka’s framework for combating illicit financial activity is already supported by key legislation, including the Prevention of Money Laundering Act and the Financial Transactions Reporting Act (FTRA). These laws provide the legal basis for investigating suspicious financial transactions, enforcing reporting obligations and prosecuting money laundering-related offences.
The newly approved Sri Lanka anti-money laundering national policy is expected to build upon these existing legal frameworks by promoting a more coordinated national approach to risk management, regulatory compliance and enforcement between 2026 and 2030. As implementation begins, regulators and financial institutions will be expected to align their compliance strategies with the policy’s objectives while strengthening safeguards against financial crime and terrorism financing.