Cyber criminals have hacked Sri Lanka’s finance ministry, stealing millions of dollars destined to repay debts to Australia.

The Sri Lankan government confirmed it had lost more than $3.7 million when criminals hacked into the department’s computer system and email servers.

It is the largest amount of cash ever stolen by hackers from a state institution in Sri Lanka which is a major blow to the debt-ridden country.

Finance ministry secretary Harshana Suriyapperuma said authorities were alerted to a break-in to the ministry’s e-mail server which showed a payment owed to Australia had disappeared. 

“Criminal investigators are looking into this and we are not in a position to give further details,” he said.

Sri Lankan authorities have sought help from foreign law enforcement agencies, including Australia’s.

Australia’s High Commissioner in Sri Lanka, Matthew Duckworth, said Canberra was aware of “irregularities” in payments owed to it.

“Sri Lankan authorities are investigating the matter and are coordinating with Australian officials, who are assisting the investigation,” Duckworth said on X.

“Australia remains committed to supporting Sri Lanka’s return to debt sustainability.”

Four senior officers at the Public Debt Management Office have been suspended since the breach.

The attack came as Sri Lanka’s central bank and finance ministry launched an advertising blitz in local newspapers earlier this year, warning Sri Lankans not to fall prey to cyber scams.

Sri Lanka is recovering from a crippling economic crisis in 2022 after Colombo defaulted on its $46 billion external debt.

AFP