Sri Lanka Finance Ministry Loses $2.5M to Cyber Breach

Cybercriminals stole $2.5 million from Sri Lanka's Finance Ministry through a breach in its computer system, officials confirmed Thursday in Colombo, marking the largest such theft from a state institution in the debt-burdened nation. The funds were intended for debt repayment to Australia, exacerbating challenges for the country as it works to stabilize its economy following a severe crisis.

The breach occurred via unauthorized access to the ministry's email server, according to Finance Secretary Harshana Suriyapperuma. Authorities detected the intrusion earlier this year and launched an investigation, which revealed the diversion of the payment. "Criminal investigators are looking into this, and we are not in a position to give further details," Suriyapperuma told reporters. In response, four senior officers at the Public Debt Management Office were suspended pending further inquiry.

Sri Lanka established the Public Debt Management Office earlier this year as part of reforms tied to a $2.9 billion bailout from the International Monetary Fund, secured in early 2023 after the island nation defaulted on $46 billion in external debt during its 2022 economic meltdown. The theft...