Sri Lanka strengthens anti-terror financing sanctions

Sri Lanka has renewed its focus on Targeted Financial Sanctions (TFS) as part of efforts to strengthen national security and disrupt the financing of terrorism.

The Ministry of Defence said these sanctions are used to block individuals or organisations believed to be involved in terrorism or the financing of terrorism from using the country’s financial system.

According to the Ministry, Targeted Financial Sanctions include restrictions that freeze financial and non-financial assets, limit access to banking and economic resources, and prevent designated persons or entities from using those resources for financial needs.

In Sri Lanka, these sanctions are implemented in line with United Nations Security Council Resolution 1373 of 2001 through Regulation No. 01 of 2012 under the United Nations Act, No. 45 of 1968.

The Ministry said that once an individual, group, or organisation is designated through a Gazette notification issued under Regulation No. 01 of 2012, a legally binding freezing order is imposed.

As a result, bank accounts can be frozen, financial transactions can be stopped, and restrictions can be placed on the use, sale, rental, or transfer of assets such as land, vehicles, houses, jewellery, and other property.

The Ministry further said that the authority to impose Targeted Financial Sanctions lies with the Minister of Foreign Affairs, while the Secretary to the Ministry of Defence has been appointed as the Competent Authority for administrative and operational matters.

It also said that all designations and freezing actions are taken based on tangible evidence and national security considerations.

According to the Ministry, these sanctions play an important role not only in preventing terrorism financing, but also in strengthening Sri Lanka’s financial system and ensuring compliance with international obligations under the United Nations and the Financial Action Task Force (FATF).

To improve transparency, accountability, and public awareness, the Office of the Competent Authority has launched an official website, www.competentauthority.gov.lk, where the public can access information on Gazette notifications and freezing orders.

The Ministry said the move is part of wider efforts to strengthen the legal and administrative framework related to Targeted Financial Sanctions and to keep the public informed.

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