Targeted Financial Sanctions Strengthen Sri Lanka’s Defence Against Terrorism Financing

Sri Lanka has significantly strengthened its national security framework by placing renewed emphasis on Targeted Financial Sanctions (TFS), a critical tool used to disrupt the financing of terrorism and safeguard the country's financial system.

Targeted Financial Sanctions are special restrictions imposed on individuals or organizations believed to be involved in terrorism or financing of terrorism. These sanctions are designed to freeze financial and non-financial assets, restrict access to banking and economic resources, and prevent designated persons or entities from using the country's financial system for any kind of financial requirement.

In Sri Lanka, these sanctions are implemented in accordance with United Nations Security Council Resolution 1373 (2001) through Regulation No. 01 of 2012, enacted under the United Nations Act, No. 45 of 1968. Once an individual, group, or organization is designated by a Gazette notification published under regulation No. 01 of 2012, a legally binding Freezing Order is issued. This results in the freezing of bank accounts, stopping of financial transactions, and restrictions on the use, sale, rent or transfer of assets such as land, vehicles, houses, jewellery, and other property.

Significantly, 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 purposes. This appointment underscores the high level of importance accorded to counter-terrorism financing at the national level. All designations and freezing actions are handled based on tangible evidences, and national security considerations.

Targeted Financial Sanctions play a vital role not only in stopping terrorism at its source 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).

In order to enhance transparency, accountability and public awareness, the Office of the Competent Authority has launched a dedicated official website, www.competentauthority.gov.lk, where members of the public can access information on Gazette notifications and freezing orders.

Terrorism often operates silently through financial transactions and concealed assets. By strengthening the legal and administrative framework for Targeted Financial Sanctions and making information accessible to the public, Sri Lanka reinforces its commitment to peace, stability, and national security, while encouraging citizens to remain informed and vigilant.